A substantial industrial property north of Auckland is poised to capitalise on local growth, attracting significant investor interest as the demand for dependable income-generating assets continues to increase.
Situated on 4.27ha of freehold land at 34-40 Cove Road, Bayleys brokers say the investment opportunity features a solid net annual income of $462,349 plus GST and outgoings, supported by three well-established tenants.
Bayleys in the North salesperson Nigel Ingham says the property’s appeal is highlighted by its diverse tenant mix, including local timber manufacturer Northpine, national building supplier Waipu ITM, and a self-service laundromat, providing a steady income stream and split risk opportunity for future leasing.
“A Weighted Average Lease Term (WALT) of nine years and CPI-linked annual rent increases add to the property’s attractiveness as a solid portfolio investment, with a diversified tenant mix and three stable income streams.
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“Furthermore, its location in an identified growth node as part of the Whangārei District Growth Strategy and designation as Settlement Zone Industry (Sub-Zone 3) enhances its potential for add-value works, redevelopment, and long-term appreciation,” he says.
Ingham is marketing the property for sale by deadline, closing at 4:00pm on Wednesday, 30th October 2024 (unless sold prior) with Bayleys colleague Daniel Sloper.
The property has three titles and features approximately 120m of frontage to the main artery connecting the coastal road with the Waipu township and State Highway 1.
Bayleys in the North salesperson Daniel Sloper says buildings totalling 5,075sqm (more or less) include a standalone bulk retail warehouse, offices and buildings for the mill operation, and a road-front premises which has been converted for use by the laundromat.
“Each tenant operates under long-term leases with regular market reviews, ensuring consistent income growth while mitigating vacancy risks, which provides a steady income stream for investors exploring future use options. The property has a solid rental history, which further supports its desirability in the current market.
“The land is near flat throughout and features only 12 percent site coverage, less than 500 metres from the Waipu town centre. This makes it an appealing location for businesses and future investment whilst offering obvious expansion opportunities and the capacity to leverage the growing demand for industrial space in the area.
“Urban expansion north from Auckland, along with the recent population surge in Waipu, highlights this area as a crucial growth hub, signalling a promising outlook for industrial activities in the region.
“The subject property’s features, including diversified cashflow, split-risk tenancies, a connected and increasingly critical location, and room to grow, provide a compelling base for investment.
"At the same time, we expect industrial asset supply will remain tight with a restricted development pipeline, adding value to well-positioned properties and enhancing their potential for long-term appreciation as demand continues to outpace supply across the region.”
- Supplied by Bayleys
