Brand new Wiri investment offering to capitalise on logistics boom
Brand new Wiri investment offering to capitalise on logistics boom
| 24 February 2018
A brand new freehold industrial building constructed by one of New Zealand’s most respected industrial developers on a prime site in the Auckland industrial precinct of Wiri, with a new tenant in place on a long ten-year lease, has come up for sale at 107 McLaughlins Road.
The property is being marketed by Paul Steele and Claus Brewer of CBRE in preparation for a public auction set down for Thursday 15 March 2018, unless sold prior.
107 McLaughlins Road is being marketed for sale at a time when new, high quality industrial properties that are available for purchase are extremely scarce, says Paul Steele.
“We have received strong levels of inquiry from the first day that this property hit the market, as the investment will help to ease the drought in A-grade investment stock over recent months. The property itself also ticks all the right boxes: modern, high quality, new build and location. In this highly connected location near to Auckland Airport, Wiri Inland Port, as well as SH1 and SH20, and with an outstanding and fit-for-purpose building design and build quality, 107 McLaughlins Road will be an attractive tenant proposition for decades to come.
“It will therefore be hard to beat an investment as stable and hassle-free as this brand-new purpose-built property, designed for and fully tenanted on a new 10-year lease to New Zealand-owned and operated container specialists Cargo Plus Limited. Given the combination of immediate and longer-term income potential, we’re expecting the property to attract strong interest from a range of investors, from private individuals to family trusts and larger syndicates.”
Built by well-regarded industrial property developer Euroclass as part of their Stonehill Business Park estate, and completed in December last year, 107 McLaughlins Road offers 4,550sqm of net lettable area on a 6,898sqm corner site with dual street connectivity.
Fully fenced, the property offers drive-through access from McLaughlins Road onto Stonehill Drive via the 1,250sqm breezeway canopy that sits above the well-engineered concrete yard area.
Furthermore, 107 McLaughlins Road offers an ideal 10% office to warehouse ratio. The 3,000sqm warehouse is clear span, with a stud height of approximately nine metres at the knee rising to 10 metres at the apex. Access to the warehouse is via three large roller doors on the northern elevation, providing well sheltered protection from any prevailing winds. The offices are set over two 150sqm floors, with excellent aspects over both the operating yard area, and also views over the Manukau harbour.
Steele says from a layout and access perspective the property – which is zoned for light industrial - is tailor-made for freight and logistics tenants who have been struggling to find existing buildings to suit their needs.
“With a carefully designed layout and three accessways, the site is geared towards highly efficient de-vanning and unloading/loading, freight activities. Trucks can roll in, unload, load and move out without any complicated manoeuvring and with container bays capable of holding up to 25 20- and 40-foot containers there is ample storage, all ensuring that this a site ready to support productive freight operations.”
Steele says the property commands current year rental income of $499,500. “With Cargo Plus signing up for a 10-year lease commencing only last month and with two further rights of renewals, investors will be able to enjoy long term income with fixed rental increases, providing guaranteed income growth every year throughout the term of the lease.”
Located in a high profile corner position at the eastern edge of the established Stonehill Business Park, 107 McLaughlins Road is in a safe and secure setting with one road in and one road out.
Other high-profile nearby occupiers in the area include The Warehouse, Progressive, Griffins, Foodstuffs, Downer, K-Mart and Goodman Fielder.
Since its creation in 2011, Stonehill Business Park is now 64% complete, with the entire development programme of vacant sites owned and constructed solely by Euroclass, says Brewer.
“Euroclass has rightly earned a reputation of ensuring high quality design treatment throughout the park. Because Euroclass understands that commissioning a new building is a major business commitment that requires thorough evaluation, their design and build team takes considerable time to work with their occupiers to understand and evaluate existing work-flow models, materials handling logistics, expansion capabilities and team working environments before a single line is drawn. They use the experience and knowledge that has been accumulated over decades to ask the right questions, investigate possibilities and become actively engaged in defining the most appropriate solution.”
The site is just two kilometres from the Cavendish Drive interchange onto State Highway 20, ensuring easy access to Auckland Airport and State Highway 1.
From this same interchange, Puhinui Road provides an alternative route to the Airport and short travel times to the CBD via the Waterview tunnel.
Carl Mills from Cargo Plus, the tenant at 107 McLaughlins Road, says: “There’s no denying the value of the location of the property to our operations, particularly due to the uncongested and swift access to and from the motorway network.”
Claus Brewer says the proximity to the Wiri Inland Port also makes 107 McLaughlins Road such a compelling proposition.
“As a major commercial rail connection to the main Auckland port and the national train network, Wiri is strategically positioned to be an absolute drawcard for warehousing and freight tenants. With just a 1.2% industrial vacancy, Wiri is below the Auckland average and the positive vacancy trend demonstrating high demand with net absorption of over 50,000sqm in 2017.”
Brewer adds that with the industrial property market extremely hot currently, showing strong fundamentals and with vacancy at long-term lows, the property offers the perfect opportunity for investors to dip their toes in the market.
“There’s no denying the heat in the market currently. This is driven largely by a real boom in the freight and logistics industry, with record cargo volumes at the major North Island ports and airports.
“This has led to significant development activity to cater for the growing demand, as seen on a number of fronts. Foodstuffs recently announced it is going to construct a new distribution centre at Auckland airport, plus a chilled distribution centre in Hornby Christchurch, while Tainui Group is looking to subdivide and develop a 48-ha site adjacent to its inland port and logistics hub at Ruakura on Hamilton’s eastern boundary.
“If anything, the freight and logistics boom will only continue with the growth of e-commerce and online retailers expected to come to these shores in the future. This will continue to drive the need for freight and logistics hubs and warehouse space. Against this backdrop, properties of the quality and size of 107 McLaughlins Road are poised to capitalise on a long run of future growth.
“As a newly-built property in a prime, connected location with a long-term tenant and locked-in rental income, it is set to be a stable, hassle-free investment both now and well into the future: an exceptional asset.”
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