Set to make a huge impact in Auckland’s logistics sector, a state-of-the-art 36,080sqm freight forwarding intermodal facility occupying part of a 17.16 hectares site with rail connectivity and leased to Toll on a 15-year initial term has come to the market for sale.
The soon to be completed Toll Intermodal and freight facility in Otahuhu is the most significant industrial investment and development opportunity available in the New Zealand market, according to Claus Brewer, Bruce Catley and Brent McGregor of CBRE, who are exclusively marketing the property for sale via an International expressions of interest campaign closing at 6pm on Monday 16 December 2019.
Bruce Catley of CBRE says: “Strategically positioned in New Zealand’s Otahuhu industrial heartland, with direct access to the North Island main trunk confluence of the eastern and southern rail lines, this property offers a significant opportunity for investors focused on the logistics sector.
“Not only is it brand new and leased to one of New Zealand’s largest domestic freight forwarding companies on a long-term basis, but the adjoining 7.5 hectares in three sites offers significant future development upside. It is a property that provides its owner with an exceptional infrastructure asset with growth potential.”
Located on the corner of Savill Drive and James Fletcher Drive, one of the main east-west routes through Otahuhu, the newly constructed building offers 36,080sqm of Gross Lettable Area.
The property incorporates 30,080sqm of warehousing, 3,530sqm of offices, 22,730sqm of heavy-duty yard space, and 441 car parks for on-site staff and drivers.
Major tenant Toll Networks (NZ) Ltd is a wholly owned subsidiary of Toll NZ, the parent company for the New Zealand operations of Toll Group that operates a broad range of transport and logistics services. Annual rent is set at $6.4m per annum, with fixed rental growth of 2.5%, and a 15-year lease with two further rights of renewal of 10 years.
Claus Brewer says that hi-tech intermodal freight management such as the facility being created by Toll on this property is the gold standard in logistics. “It enables smooth and efficient cross-track handling of freight between different transport modes. Separate roadways for trucks and other vehicles will provide a complete drive-around capability and free flowing movement of different vehicles inside and outside the building. New accessways are being built for both James Fletcher Drive and Savill Drive.”
Brewer adds that many opportunities to add value and grow exist on site. “Toll’s initial investigations have determined that there is potential to reduce the size and configuration of the existing 14,415sqm stormwater pond on proposed Lot 5 to provide opportunities for future construction.
“Toll has prepared a draft subdivision plan, undertaken geotechnical work and master planned the site infrastructure in contemplation of the future subdivision. The balance of the developable land equates to 74,832sqm and offers a significant opportunity for future development and further value-add.”
The facility is located in Auckland’s industrial heartland, within 4km of trunk routes SH1 and SH20, and adjacent to the eastern and southern main rail lines. A dedicated rail line has been built to connect the facility with the southern trunk line through a north/south junction just 400 metres to the east. Auckland International Airport is 8km to the south west, and the Port of Auckland just 17km north. Both MetroPort in Onehunga and Inland Port in Wiri are nearby.
The local area has modern efficient industrial estates, architecturally designed offices and warehouses. Past and present neighbours include Fletcher, Sleepyhead, Steel and Tube, Fonterra, USG, Super Retail Group, NCI and Danone.
Brent McGregor says the property has the hallmarks of a high quality international standard facility that will attract the attention of buyers in New Zealand and also given its scale overseas.
“This property is receiving a lot of attention, as not only is it centrally located in the Auckland conurbation, but it is also at the busiest point of the fast-growing Golden Triangle of Auckland, Hamilton, Tauranga. This region already has 50% of the country’s population, and Government statistics point to a 35% increase to this in the next 25 years.
“From a freight perspective the number of inland ports is also growing. They now include MetroPort and InlandPort as well as new major developments on the northern side of Hamilton, at Ruakura and Horotiu. This is a vibrant sector being supported by a growing population, and economy,” he says. “Otahuhu is well-known as the historical engine room of New Zealand’s industrial economy, and the James Fletcher Drive precinct is at its heart.”
ABOUT CBRE GROUP, INC.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
