With the current owner, Unitech Property Trust, dissolving and selling its assets, the property presents a strong opportunity for an active investor or developer to acquire a large land holding with a well-established anchor tenant and multiple options for the future.
The anchor tenant, global health & nutrition company DSM, has occupied two buildings on the site since mid 2013 and is now consolidating its operations into 38-44 Bruce McLaren Road, says Bedford.
“Alongside DSM’s facility, the site also provides vacant land which could be built on, a soon to be vacant warehouse building and a smaller, street-front building with a short term lease which could be redeveloped into retail and/or office units.
“Given the amount of development space, this property would ideally suit an investor with an eye for potential future upside, as there is a significant opportunity to add value here.”
DSM is a global leader in science-based nutrition, health and sustainable living, founded in 1902 in the Netherlands. In late 2019 it opened its upgraded facility at 38-44 Bruce McLaren Road, from which it produces a range of nutritional compounds with a focus on innovation and sustainability. The company is classified as an essential business, making its performance less vulnerable to pandemic disruption.
DSM’s new lease to 38-44 Bruce McLaren Road will provide $1,021,431 in net annual rent for an eight-year term expected to commence in November this year. Further holding income of $65,000 a year is provided by a two-year lease to Waitakere Alternative Education Consortium, which currently occupies the small office building on the street front at 38-44 Bruce McLaren Road.
These leases, along with the property’s size, location and Light Industry zoning, combine to offer a highly compelling opportunity with real scale in the heart of one of Auckland’s longest-established industrial precincts, Catley says.
“Land holdings of this size are rarely available, especially in tightly-held industrial areas such as Henderson. There are so many possibilities here – we look forward to seeing a purchaser with vision acquire the site and realise its great potential.”
The northern-most portion of the site, 30 Bruce McLaren Road, is a 1,660sqm parcel of flat, vacant land, accessed off a shared driveway which also services number 32. It provides a potential opportunity for a future occupier of the warehouse at number 32 to expand, or for a new building to be constructed to house another tenant for additional income.
At 32 Bruce McLaren Road is a 2,503sqm warehouse building, constructed in the 1980s and previously occupied by DSM. Works are commencing shortly to bring the building up to 70% of new building standard, remove DSM’s fit-out and also to remove the airbridge connecting the building with DSM’s main facility.
The warehouse has a seven-metre stud, drive around access and low site coverage of 34%, says Dowling.
“This facility could be ideal for a larger industrial property occupier which needs yard space and excellent vehicle access for loading and unloading. Following the upgrade, this building will be highly attractive to a variety of users requiring functional, open-plan warehousing.”
The largest facility on the site, DSM’s buildings at 38-44 Bruce McLaren Road, provides 7,869sqm of building area (across two warehouses) on a 17,883sqm site with car parking and vehicle manoeuvring areas. Plans are in place to expand and improve the canopy and hardstand yard areas, as well as refurbishment of DSM’s offices.
The smaller, two-level office building at the front of the site leased to Waitakere Alternative Education Consortium also comes with 20 car parks.
Offering a huge 25,978sqm land holding, the site is well located 1.5km south of Henderson town Centre and Westfield mall, Dowling says.
“Bruce McLaren Road is a well-known and busy thoroughfare, with a large number of national and international brands operating nearby. For many businesses, Henderson is a highly attractive location as it is well served by a local workforce and also provides a high standard of nearby amenities for staff.”
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