Auckland, 24 August 2013 - At a time when Papakura has been identified as one of Auckland’s key growth areas, a substantial industrial complex and vacant land parcel has come up for sale at 40 & 58 Hunua Road.
The two adjoining properties are being marketed by Bruce Catley, Claus Brewer and Tim Boyle of CBRE New Zealand on behalf of Fletcher Building, for sale by way of Deadline Private Treaty, if not sold prior, with a closing date of 19 September 2013.
Bruce Catley, Managing Director of CBRE in South Auckland, says: “These industrial properties include long term income and huge potential for multi-purpose development in the future. The property, in a designated growth area of Auckland, offers a range of possibilities to investors and/or developers.”
The two titles offer a combined holding of 7.5 hectares, with approximately 5.0 hectares containing the existing industrial facility and 2.5 hectares being developed for Winstone Aggregates, a Fletcher Concrete and Infrastructure Limited business.
Claus Brewer, Director of CBRE in South Auckland, says that the existing industrial complex features warehouse space, manufacturing and office facilities, amenities, laboratory and a canteen as well as ancillary buildings.
“The total floor area of the complex is just over 17,000sq m, with the balance of the flat site containing extensive asphalted car park areas and internal roading. This part of the property includes around 7,000sq m of surplus land with direct road frontage onto Hunua Road.”
Brewer says that the existing buildings could be upgraded, removed in whole or part, or the site completely redeveloped as a new complex or subdivided into smaller sites: “The property offers several options, which we know is of real value to purchasers and developers in the current market.”
“The smaller block is approximately 2.5ha, with fencing and separate access to Hunua Road. The site is about to undergo redevelopment to provide a truck fleet facility for Winstones.
“With regards to zoning, industrial activity is permitted on both titles. The 5.0 hectare holding at 40 Hunua Road is zoned Industrial 3, and the 2.5 hectare site at 52 Hunua Road is zoned Industrial 4 under the Auckland District Council Plan (Papakura Section).” The established industrial facility leaves a legacy of its former heyday, with a significant power capacity feeding into the site and a consented water bore among some of the existing infrastructure available.
Tim Boyle, Associate Director of CBRE in South Auckland, says: “The Laminex Group, which traded formerly as Formica New Zealand, has operated a high pressure manufacturing plant within the complex and, before that, the Hunua Road site was used for agricultural purposes.
“The purchaser may potentially secure short-term income from the existing improvements at 40 Hunua Road, depending on timing, whilst 52 will be leased by Fletcher Concrete and Infrastructure at $310,000 per annum net for a period of 10 years from 1 February 2014.”
Catley says that the Hunua Road site has established industrial neighbours, including Griffins Food and Independent Liquor.
“It is well-placed with regards to current transport connections, and the recently upgraded Southern Motorway Interchange at Papakura is nearby.”
Catley says Hunua Road is also a key growth area in Auckland. “With new road infrastructure underway, as well as the large Papakura residential catchment and its associated workforce, Papakura in general and Hunua Road specifically are both set to benefit from being a designated growth area.”
He adds: “Papakura has been branded as one of Auckland’s 10 Metropolitan Centres, which are identified in terms of their hierarchy as having important retail and employment functions at a sub-regional scale.”
Boyle says the two adjoining properties represent opportunity on several fronts: “Firstly, there may be the potential for some short term income from Fletcher Building Products Limited, together with the passive income produced from the long term lease to Fletcher Concrete and Infrastructure Limited.
Brewer says: “Papakura’s growth and Auckland’s commitment to improving transport connections and infrastructure in the identified sub-regions will ensure commercial and industrial precincts are prioritised in the short and long term. The purchaser of the site at 40 & 58 Hunua Road would be buying at a stage when large industrial landholdings are rapidly diminishing.”
Catley says CBRE is receiving a range of interest in the site from investors and developers: “There is an abundance of options for this substantial industrial holding going forward.
“This is an opportunity at a time where we have seen a dramatic decrease in the number of industrially zoned sites over 5 hectares available in the market. These brownfield, industrially zoned, level and regular shaped sites will appeal to add value investors, land bankers and occupiers.
“We are encouraging motivated purchasers to consider the wide range of options that the Hunua Road property presents.”
About CBRE Group, Inc.
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.