18.8 hectare industrial property for sale returning almost $3 million income annually
A huge 18.8ha industrial property in Onehunga producing almost $3 million in annual income is for sale at a time when large industrial sites in Auckland are virtually non-existent.
Colliers International’s Industrial team is selling the strategic landholding at 39-59 Miami Parade, next to the Manukau Harbour, on behalf of Ports of Auckland Limited.
Director Andrew Hooper, of Colliers International, says it is a singular opportunity to acquire a large site with minimal improvements, excellent redevelopment potential and coveted Heavy Industrial zoning.
“It’s almost unprecedented for such a substantial, centrally located site to be offered for sale in the current Auckland industrial market,” he says.
“Record low vacancy rates and limited land supply have contributed to enormous demand for industrial property, especially large sites that can be readily developed.”
Hooper says 35-39 Miami Parade comprises 16.2ha of income-producing land on an 18.8ha gross site across three individual titles.
“Backing onto the Manukau Harbour, the property is strategically located on the border of the established industrial precincts of Onehunga and Penrose.
“Onehunga is known as a key manufacturing and distribution hub due to its central position and easy access to key transport infrastructure.
“The property for sale is fully tenanted with investment-grade leases to established companies EnviroWaste, Downer, Auckland Heliport and Car Haulaways.
“Limited site improvements and generous zoning allow for numerous redevelopment options in the long term.
“This is truly a once in a lifetime opportunity to secure a superbly located, freehold industrial property on a scale that is rarely offered to the market.”
Colliers International is marketing 39-59 Miami Parade for sale by deadline for offers closing at 4pm on Wednesday 22 May, unless it is sold earlier.
National Industrial Director Greg Goldfinch says the site has long been owned by Ports of Auckland Limited but is now surplus to the vendor’s requirements.
“The Auckland Council-owned company has been divesting assets around the Onehunga port, which is now unsuitable for large, modern ships due to Manukau Harbour’s shallow entrance.
“The wharf was purchased last year by Auckland Council, which plans to transform the land into a mixed-use precinct as part of the wider urban regeneration of Onehunga.
“The area’s transformation will have an immensely positive impact on property prices in the area, making Miami Parade an astute long-term investment.”
The property is on five leases to four established tenants returning a combined $2,914,215.75 plus GST in net annual rent.
Goldfinch says the leases are below market rental rates, which provides an opportunity to grow revenue at review time.
“All tenants are well established businesses that have a strategic advantage being located at Miami Parade.
“The major tenant, Car Haulaways, uses the site as car storage for well-known vehicle brands.
“Auckland Heliport has recently redeveloped its site to an award-winning standard and provides the new base for the Auckland Police Eagle helicopter service.
“Downer and EnviroWaste have processing facilities on the site that complement other aspects of their substantial businesses.”
Industrial Broker Ash Vincent says the property is situated at the western end of Miami Parade, a cul-de-sac which can be accessed directly off Neilson Street or from feeder streets Angle Street and Pukemiro Street.
“The property’s immediate surroundings consist of industrial buildings of mixed age and size. Directly to the north of the site are the Metrobox and Metroport developments.”
Vincent says the property benefits from Auckland’s heaviest industrial zoning, allowing for a wide range of heavier industrial operations.
“A key attribute of the Heavy Industry zone is that it contains sites large enough to accommodate large-scale industrial activities.”
Tenant Car Haulaways occupies a substantial 114,745sq m across two leases, representing 71 per cent of the property’s total lettable area.
The leases cover 66,470sq m to the southeast of the site and a further 48,275sq m to the northwest.
Both leases are for seven-year terms with three rights of renewal of seven years each, extending the final expiry to September 2044.
The leases return $2,036,724.25 plus GST in net annual contract rent, with market reviews on renewal.
Car Haulaways is part of the Car Distribution Group (CDG), which was established in 1962. It operates a fleet of 120 car transporters and 24ha of storage facilities for about 10,000 vehicles.
Its services include car storage, detailing, intermodal vehicle distribution and computer systems, with a network covering Auckland, Waikato, Wellington, Picton, Nelson, and Christchurch.
Auckland Heliport, operated by Advanced Flight, occupies 10,134sq m at centre of the site on the southern waterfront, representing 6 per cent of the total lettable area.
The seven-year lease returns $214,500 plus GST in net annual contract rent, with three rights of renewal of seven years each extending the final expiry date to July 2044. Rent reviews are to market on renewal.
Advanced Flight was established in 1998 and provides Auckland-based helicopter management and charter services.
It is one of New Zealand’s largest helicopter charter services with a fleet of nine luxury single- and twin-engine, high-performance helicopters dedicated to passenger transport.
Auckland Heliport was purpose-built as a new base, close to both Auckland International Airport and the city centre, in 2010.
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