Auckland, 2 March 2013 - At a time when industrial vacancy and yields in Mt Wellington are at multi-year lows, a prime A grade office warehouse complex in Mt Wellington on the waterfront of the Tamaki River has come up for sale at 40 Paisley Place.
Marketed by David Arlidge, Jeremy Barnett and Claus Brewer on behalf of AMP Capital Property Portfolio Limited, the freehold property is for sale by deadline private treaty, with a closing date for offers of 4pm on Thursday 21 March 2013.
Arlidge says: “40 Paisley Place was purpose-built for Bridgestone Firestone Tyres and then become the film studio for the making of the third series of Spartacus – War of the Damned. With filming completed in mid-January 2013, the building is now vacant. This exceptional distribution and head office facility is now officially on the market for sale.
“It is not often that I would describe industrial premises with words like stunning views, prime waterfront, natural environment, and serene beauty. These types of facilities are usually hardworking and purpose-built to do a job. However, when standing in the offices of 40 Paisley Place looking north over the Tamaki River, the hard-nosed industrial adjectives all go out the window, as the view is of river, boats, grass and trees. It feels rural, not industrial: this spot is special.
“With industrial vacancy in South Auckland dropping by 0.8% to just 2.2%, and with supply in Mt Wellington dwindling, the chance to secure an industrial complex of a similar quality is virtually nil.
“For sale with vacant possession, this property presents a considerable opportunity for owner-occupiers looking to start operations immediately. It offers a chance to buy an exceptional, prime asset at significantly below replacement cost and, at just over half the cost of renting in the current low interest rate environment, it makes great financial sense.
“We have had three serious owner-occupiers looking at the complex already. We’re also receiving interest from developers and investors with motivated tenants looking for a new space.”
The north-facing complex is made up of a large, high-spec, single-level office building measuring 1,551sqm and a separate warehouse measuring 4,745sqm. With 137 on-site car parks, there is generous parking for staff and customers.
The 1,551sqm single level offices are fully cabled, have a generous stud height and feature a superb fit-out with an attractive mix of open plan and partitioned offices.
Barnett says that the large open plan space will allow occupiers to define their own spatial requirements. “The staff cafeteria adjoins two large training rooms, which together all open up to create a huge conference training location, with four sets of French doors opening out into the north facing yard/grassed area. This creates an ultimate training environment, complete with a catering kitchen and outdoor patios. The complex is ideal for functions - there’s no need to go off-site for the next big meeting or product launch.
“The complex has the rare attribute in that it offers separate distribution and office functions - ideal for a company looking to establish their headquarters in the same location as their distribution centre. The property also opens up opportunities for developers and investors to accommodate separate office and warehouse tenants and add some value by extending the warehouse’s office facility.
Arlidge adds that the complex has won a raft of awards since being built in 2002, including being a finalist in the NZ Property Council Industrial awards and winning the Master Builders Commercial Award in 2003.
“The complex has also been given a high Feng Shui rating by a visiting master; and with water views, a neighbouring reserve and great indoor-outdoor flow, it’s not hard to see why.
“The high quality warehouse offers total space of 5,805sqm including warehouse, offices, amenities and a fully covered 899sqm loading canopy with a secure, fenced yard area. The warehouse has a stud height of 10.7 metres at the knee (lowest point), a pallet capacity of around 6,500 and minimal column interruption; the space is fully-equipped to meet the requirements of a fast-paced distribution business.”
40 Paisley Place is located in the heart of Mt Wellington, just a 15 minute drive from Auckland’s CBD.
Neighbouring businesses in the area include Rayglass Boats, Versacold NZ and Bidvest NZ Ltd. In addition, nearby Sylvia Park Shopping Centre offers useful support amenities to the complex.
Barnett says: “Mt Wellington has excellent motorway connections and with close proximity to the city’s main sea, air and freight ports, you couldn’t ask for a better industrial location. As an added benefit, the branding opportunities of being seen from the South-Eastern Highway are considerable.”
Arlidge says that the latest CBRE market research shows increasing demand and decreasing vacancy levels across South Auckland’s industrial properties.
“Mt Wellington is in a unique position as it is the only area to have a decrease in supply as well as a decline in vacancy.
“South Auckland prime industrial yields firmed by 8 basis points (-0.83%) in Q4 of 2012; now sitting at 7.65% and returning to pre-recession levels. The six month forecast sees prime industrial yields in South Auckland continue to firm, so 40 Paisley Place has come on the market at a particularly good time for smart buyers looking to make the most of the market.
“Over the past three years, industrial property in Auckland and Christchurch has consistently been the best performing sector. Auckland has had the strongest yield trend improvement over that time, with the Auckland industrial sector showing a moderate level of growth. The market will continue to gain more momentum with no signs of increasing supply, and demand driven by companies prepared to plan further into the medium and long term.
“It is great to see a property of this nature being available to owner-occupiers. The banks as funders are supporting property lending to businesses with a good financial track record. This allows a business to own an asset that will continue to financially accrue as opposed to paying rent.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.