Fantastic 4 to ease dearth of Auckland industrial opportunities
Fantastic 4 to ease dearth of Auckland industrial opportunities
17 May 2014
Auckland, 17 May 2014 - At a time when high levels of interest exist across the entire spectrum of the industrial property market, caused in part by a dearth of appropriate properties and land for sale, CBRE is marketing four South Auckland opportunities that will provide variety for investors and occupiers.
10 Oak Road and 3 Balemi Way in Wiri, plus 35 Fairfax Avenue in Penrose and 72-86 Great South Road, Takanini, are marketed by Claus Brewer, Mark Bramwell, Paul Steele and Raj Chaudhary of CBRE. All four properties are for sale by deadline private treaty, with a closing date of 5 June 2014 unless sold prior.
“It is a real challenge to secure development land in the current market,” says Claus Brewer. “In addition, the opportunity to purchase freehold is very limited at present. We have seen prices increase noticeably in the last six months.
“Only very recently, the New Zealand Herald highlighted The Property Council of New Zealand’s concern that the Proposed Auckland Unitary Plan provides too little land for the city's commercial development.
“We agree with The Property Council that a dearth of land will have significant ramifications for Auckland's future employment, business and economic growth and, in saying that, the serious issues of a lack of land for commercial purposes highlight the importance of undertaking robust and timely assessments to meet future business requirements.”
“The dearth of opportunity exists in both large and small format scenarios and with fewer and fewer options around, particularly in Wiri and Penrose, these four properties represent a strong cross section of prospects than can be bought at an affordable level.”
10 OAK ROAD, WIRI
10 Oak Road in Wiri is a high quality industrial facility marketed by Paul Steele and Claus Brewer on behalf of its owner occupier, who also owns 35 Fairfax Avenue.
Paul Steele says that as the owners’ company is growing, they are consolidating their operations and moving out of both facilities and into another bigger one in Wiri.
“This is a freehold property that provides an excellent opportunity to acquire a quality building in one of Auckland’s most popular and fast growing industrial precincts,” says Steele. “It is located in an established area, benefitting from good street profile on a well maintained street.
“Not only does it offer an all-desirable in-situ 2-tonne gantry crane and rail, which is in huge demand, but it also offers three roller shutter doors, drive-around access and expansion land at the rear.
“The premises would suit a wide range of potential owner occupiers and investors. With a good level of workshop and warehouse, this facility also has office content that could accommodate showroom use. “
The property comprises a 2,955sqm site with a large frontage of approximately 44.41 metres to Oak Road. The site includes 1,375sq m of buildings, offering medium stud warehouse accommodation of 5.5m knee rising to 7m apex, and offices and amenities fronting Oak Road.
Steele says that the property provides access between Kerrs Road and Wiri Station Road in the established Wiri industrial precinct.
“Surrounding development comprises similar style and scale warehouse and manufacturing accommodation with neighbours including Griffins, Godfrey Hirst and Gough. The property is just 2.5 kilometres to SH20 and 3 kilometres to SH1, providing ready access to Auckland Airport, CBD and the greater Auckland area.
“As Wiri has become the focus of modern development over recent times, land located within the Roscommon Road and McLaughlins Road precinct has been rapidly developed into medium scale industrial facilities, largely as a result of the scarcity of industrial land supply within Auckland.”
Brewer says that the property is zoned Business 6 in the Manukau City Operative District Plan 2002.
“Business 6-zoned areas such as this are a scarce resource of some importance because they are areas where heavy industrial activity can be established with separation from sensitive activities. The plan therefore focuses on the importance to use these land resources for their intended use and not permit other business activities which can be established in other zoned areas.”
Brewer adds that the property is currently occupied by the vendor through to 31 January 2015. “Holding income is on offer, with a net lease at market rental rates to the new purchaser upon settlement. Alternatively, a delayed settlement can be agreed to coincide with vacant possession being offered.”
35 FAIRFAX AVENUE, PENROSE
With the same owners as 10 Oak Road, 35 Fairfax Avenue, Penrose, is marketed by Paul Steele and Raj Chaudhary.
The Business 4 property comprises a 1,048sqm site with road frontage of approximately 17.09 metres to Fairfax Avenue, which provides signage opportunities.
Raj Chaudhary says that the property comprises “a tidy industrial facility offering a medium to high stud warehouse of 6.6 metres at the knee rising to 9 metres at the apex.
“Access to the warehouse is given through a single roller door, promoting a 6 metre clearance. It also has two allocated office spaces on either side of the warehouse. The second office space is refurbished and currently sublet for extra income. It has its own access separate from the warehouse, and also includes a lunchroom, bathroom and partitioned offices.”
An area not occupied in front of the building is currently being utilised for approximately 10 car parks, half being undercover.
Steele says that the property is currently occupied by the vendor through to 31 January 2015, with no rights of renewal, and when vacated will offer industrial accommodation to suit a wide range of potential owner occupiers.
“This is a rare freehold site in the heart of South Auckland’s industrial precinct offering a number of attractive features that will appeal to a range of buyers and occupiers.
“Not only does it have an insitu 5-tonne gantry crane and rail, but it is a secure site with undercover car parks, plus an office split that allows for buyers to sublease and gain a second income.
“As with Oak Road, holding income is on offer at market rental rates to the new purchaser upon settlement. Alternatively, a delayed settlement can be agreed, in line with vacant possession being provided.”
Chaudhary adds that the size and location of the warehouse is highly sought after by owner occupiers and established SMEs alike.
“The property is located on Fairfax Avenue, providing access between Walls Road and Station Road, within the established industrial precinct of Penrose. Just 1.5 kilometres from SH1, the facility has easy access to Auckland Airport, CBD and the greater Auckland area. As it also occupies a central position in Penrose, it is within walking distance of Penrose Train Station.”
3 BALEMI WAY, WIRI
Returning to Wiri, a 4,000sqm parcel of Business 6-zoned land on Balemi Way on the edge of the Stonehill Business Park development is being marketed by Mark Bramwell, Paul Steele and Claus Brewer.
The site is available for development, with only temporary structures on the property, including 210sqm of free standing office with an additional 224sqm of space as outdoor shelters. The site has a flat sealed yard area of 3,350sqm that is fully secured by a newly-installed fence.
Mark Bramwell says that the property, which is located to the western side of McLaughlins Road, provides an excellent opportunity to acquire a parcel of developable land in one of Auckland’s fastest growing industrial precincts.
“This is an ideal contractor’s yard and/or development site. In a central Wiri location, close to motorway links, it would suit a number of contractors looking to service the region, particularly given its close proximity to SH1 and SH20 providing access to Auckland Airport, CBD and the greater Auckland area.”
72-86 GREAT SOUTH ROAD, TAKANINI
72-86 Great South Road offers a strong investment opportunity according to Paul Steele and Claus Brewer, who are marketing the property.
“This is an excellent and affordable opportunity to acquire a well-appointed building in one of Auckland’s pre-eminent industrial precincts,” says Brewer.
“Not only does it have good road frontage and display to the principal road network, plus close proximity to the Southern Motorway, it also offers land for further development or expansion with good underlying land value in this growth location.
“The site is highly suited to the current tenant’s operations, with the business having occupied the site for past 20 years or more”.
On a large, flat section totalling 8,681sqm, the Industrial 3-zoned site has 36.59sqm of road frontage onto Great South Road, with a back boundary of 98.52sqm adjoining the Main Trunk Rail Route.
The property has low site coverage of approximately 35%, providing good circulation and yard for the current user, whilst also allowing for future expansion.
Steele says that there is a separate two storey office building at the entrance of the site, with additional amenity in the main workshop/factory facility. “The main workshop building contains four 2-tonne gantries and is accessed through 4.5m wide roller doors. There are additional roller doors to the rear of the main workshop as well as a canopy that extends along the entire length of the area.
“There is a separate 132.36sqm freestanding building to the rear of the site that offers the opportunity for activity separation or additional storage.”
The property is subject to an Auckland District Law Society lease to Fairfax Industries Limited, currently returning rental income of $270,000 per annum (plus GST).
According to Brewer, the property fronts Great South Road at the northern end of Takanini, benefiting from exposure to the high volume vehicular traffic.
“The property is well situated in Takanini, with access and frontage to Great South Road. This is between Manuroa and Spartan Roads, adjacent to the Takanini on and off-ramps. The popular industrial position is convenient and has good proximity to available labour pools. This location has commercial appeal, benefiting from exposure to the high volume of vehicular traffic.”
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 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 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.