A sizeable industrial development site in the centre of the thriving Auckland industrial precinct of Otahuhu, close to the new Toll freight forwarding facility, ports, motorways, Auckland International Airport and the CBD, has come to the market for sale for the first time in years.
The 3.4-hectare landholding on four titles at 8, 16 and 26 Beach Road is being marketed by Bruce Catley and Claus Brewer of CBRE New Zealand. To be sold with vacant possession, it is offered for sale via Deadline Private Treaty closing Thursday 23rd July 2020.
The Heavy Industry-zoned site is currently owned and occupied by multinational science products conglomerate Dow. However, as Dow is exiting the site in July the buildings will be demolished down to concrete slab level, leaving a significant hard stand area. The market offering is for a vacant and cleared development site. Settlement will occur upon completion of demolition, estimated to be November 2020.
Bruce Catley says that the size and nature of the Beach Road property will be attractive to many owner occupiers, developers and add value investors in the current market.
“This is a very significant industrial offering. Not only is there a wide range of businesses looking to build for their specific needs but there is undoubtedly a shortage of level, regular shaped, vacant heavy industrially zoned parcels available in central locations. The ability to distribute products easily across the North Island from within this popular industrial precinct has been generally sought after by a range of users.
“This is a large, clean site in an area that has a real shortage of vacant development land that can be purchased. The lack of three-hectare plus industrial sites available is well known. CBRE research has identified 15 vacant sites between 3ha and 5ha in the South Auckland market, and with very few of them available to be purchased or developed in the next 12-18 months, they are generally inferior to Beach Road. The four existing titles add further flexibility and value for redevelopment purposes.
“With 177 metres of frontage to Beach Road and four titles, it could attract more than more than one buyer, although we expect the development potential of the entire holding to be more attractive given the estimated potential of 22,000 sqms of footprint. In the short term, the property will offer some income generation potential while development plans are drawn up.”
The 34,005sqm property has an extensive frontage to Beach Road, offering a large level build platform with concrete hardstand.
Brewer says that when the vendor has removed all improvements above slab level, the parcel of land provides scope for substantial future redevelopment.
“The site’s Heavy Industrial zoning under the Unitary Plan allows for a wide range of uses, which gives it significant development potential. An indicative scheme has been drawn up with two options – one with a single facility and the other with two – to show that the site could provide an excellent location for a state-of-the art warehousing or manufacturing facility, as high site coverage can be achieved here.
“Alternatively, thanks to the extent of road frontage, which provides for multiple points of ingress and egress, the opportunity exists to create an operation with a large yard requirement, benefitting from the site’s current level contour and extensive concrete hard stand area.”
The Beach Road property is in a well-recognised and improving industrial and manufacturing location near the new light-controlled intersection onto James Fletcher Drive, close to Otahuhu Logistics Estate and Savill Link.
The area, and proximity to an excellent labour force, are recognised benefits of this industrial location, says Brewer.
“This property encompasses Otahuhu’s reputation as an established and central industrial precinct. With ease of access to SH20, SH1, and the wider transport network, it ensures desirability and demand from logistics and manufacturing occupiers. All main arterial routes in and out of Auckland connect to this location and the access to nearby rail hubs of key freight forwarders mean Beach Road is highly accessible.”
Brewer adds that Otahuhu has long been the engine room of Auckland industrial economy. “The development of Savill Link by Goodman and the new Toll freight forwarding facility being acquired by Logos, has seen a significant improvement in the desirability of the location for logistics operators, with numerous new facilities being built for NCI packaging, Supercheap Auto, Mainfreight, USG, Steel and Tube, Toll, Fonterra, Loreal and Danone Nutricia.
“This has contributed to a noteworthy narrowing of the rental gap between the central industrial suburbs of Mt Wellington and Penrose, and the industrial suburbs further south including Otahuhu. The South Auckland markets have increasingly come into their own and have come to be recognised as Prime industrial locations. We still this trend continuing now after the lockdown.
“Therefore, the scale, central location and zoning of the Beach Road site offer remarkable potential for the purchaser of this substantial and strategic holding for future development and investment.”
