After 30 years, family company selling property on 14-month leaseback deal providing $1.6m in annual holding income.
A huge industrial redevelopment site in Auckland’s premium East Tamaki commercial precinct is for sale and short-term leaseback to a leading New Zealand infrastructure supply company.
Hynds Pipe Systems Ltd has made precast concrete products at the 5.54ha property on Kerwyn Ave for more than 30 years, and the family-owned company is now selling the property on a 14-month leaseback, providing $1.6m in annual holding income until a new owner is ready to unlock the site’s potential.
Colliers International is marketing 33, 55 and 69 Kerwyn Ave for sale by deadline private treaty closing at 4pm on Wednesday, March 11, unless sold earlier.
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Greg Goldfinch, industrial national director at Colliers, says it offers buyers a major redevelopment opportunity. “Landholdings of this scale very rarely come to the market in such a premium location, especially with Auckland’s industrial vacancy rate continuing to hover around historic lows.
“This is an exceptional opportunity for a developer or owner-occupier to obtain a large, strategic site in an outstanding location at the heart of the East Tamaki industrial precinct.
“The property spans 55,444sq m over three titles, all of which boast Auckland’s heaviest industrial zoning, allowing for a range of intensive industrial activities.
“The site is located on a main arterial route that is only minutes from the popular Highbrook business estate and the State Highway 1 motorway interchange, putting it within 20 minutes of the CBD.
“It also benefits from two separate road frontages on to Kerwyn Ave, along with five road access points. Taken together, the site’s premium location, proximity, zoning and size all make it a superb redevelopment opportunity.”
Paul Higgins, industrial director at Colliers, says the property is one of eight Hynds pipe systems manufacturing sites in New Zealand.
“The property’s improvements include several basic manufacturing buildings which are used for concrete batching, concrete manufacturing and steel fabrication.
“These buildings, along with their associated offices and amenities, may or may not have a use for future owners. The remainder of the site comprises a combination of metalled and sealed yard areas.”
Higgins says the site is predominately square in shape, with some irregular boundaries following the flow of Ōtara Creek. It has 172m of frontage and three access points on to Kerwyn Ave to the south, and 95m of frontage and two access points onto Kerwyn Ave to the west.
The site’s contour is gently sloped to the north towards the rear boundary, which then drops down to Ōtara Creek. “The site is essentially divided by a gentle slope between two large, predominately flat development sites.”
The property’s vendor, Hynds Pipe Systems Ltd, is the largest operating company within the privately owned Hynds Group. Founded in 1973 by John and Léonie Hynds, the Hynds Group is New Zealand’s premier product supplier for the management of water and wastewater in the civil and rural infrastructure markets.
Its independently certified precast pipe products are distributed through a network of 32 branches and 70 trucks throughout New Zealand.
Hynds Pipe Systems Ltd is on a 14-month lease from February 1, 2020, with one right to renew of six months, and no rental reviews.
Goldfinch says the property is situated on the northern side of Kerwyn Ave, with the main entrance opposite the cul-de-sac of Arwen Pl.
“Kerwyn Ave is a main arterial road providing access from Highbrook Dr in the northwest through to Springs Rd in the east,” he said.
“Immediately surrounding the property is a mix of industrial properties of a similar age, as well as a mixture of newer design-build properties.
“Overall, the property is in an established industrial location which is continuing to grow as development provides the scope for more land subdivision and design-build activity.”
The property is zoned heavy industry, which allows for a wide range of heavier industrial operations. This includes activities that may produce objectionable odour, dust and noise emissions.
