Passive North Shore investment with national brand tenant
A versatile workshop property with a national brand tenant on a 10-year lease is for sale as a passive investment with an attractive rental review structure.
Unit B, 177 Wairau Road is a 520sq m strata freehold property that is centrally located in the sought-after automotive precinct of Wairau Valley on Auckland’s North Shore.
It is tenanted by an established local automotive sales and service business that operates a Tyrepower-branded tyre and alignment workshop from the premises.
Colliers International has been exclusively appointed to market the property for sale by auction at 1pm on Wednesday 1 May, unless it is sold earlier.
Investment Sales Director Euan Stratton says it makes for a highly desirable passive investment.
“As Auckland grows and land uses change, workshops and smaller industrial premises are becoming increasingly hard to secure, with many being converted to different uses or remaining tightly held.
“This Wairau Road unit presents a rare opportunity to invest in one of the most highly sought-after classes of industrial property, with the bonus of strong tenant covenant backed by a national brand.
“With a 10-year lease from June 2017 and an attractive rental review structure, this is a bankable investment to add to any existing portfolio or a comfortable first step into the industrial market.”
Stratton says the property’s long lease returns $64,821 in annual rent plus outgoings, with structured rental reviews.
Market rent reviews are every four years, while inflation-indexed reviews of CPI plus 4 per cent are every two years, except on market review dates.
Two rights of renewal of four years each extend the final lease expiry to May 2035.
Industrial Sales and Leasing Director Matt Prentice says the property is located on a high-profile stretch of Wairau Road that is well known for its numerous vehicle sales and servicing businesses.
“Wairau Road is the main arterial route through Wairau Valley – one of the longest-established industrial precincts on the North Shore, with a large surrounding residential population and good proximity to the CBD via the nearby Tristram Ave motorway interchange.
“The unit for sale is one of four industrial workshops at 177 Wairau Road, all of which are accessed via a shared driveway. Dual access is provided via Croftfield Lane at the rear.”
Prentice says Tyrepower has been operating from the premises since opening in July 2017. It offers services including tyre sales, wheel alignments, wheel balancing and tyre and puncture repairs.
Established in Australia in 1977, Tyrepower is now the largest independent tyre brand in New Zealand, with 16 owner-operated stores across the country.
Industrial Sales and Leasing Broker Sam Sherning says the Light Industry zoned property was built by the well-known developer Jonmar Developments in the early 1980s.
“The property offers a favourable warehouse to office ratio, with almost 400sq m of warehouse and storage space to just over 120sq m of office and amenities.
“The main warehouse offers 257sq m of clear span space with a high 5m stud, supplemented by an additional 76.2sq m of low stud warehouse space.
“Access is via a centrally located roller door, with four car parks located directly in front of the unit.”
Sherning says the office and amenities are split over two floors. The ground floor provides access to the warehouse while the first floor has a lunchroom, two separate toilets and a 66.5sq m storage mezzanine.
The building is constructed of reinforced concrete foundations and floor slabs, with concrete block walls with pilasters, steel roof framing with timber purlins, and a long run iron roof.
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