A modern first-class property with a new eight-year lease to a longstanding tenant in the prime industrial location of East Tāmaki shapes as one of the best available offerings in Auckland in this low-risk asset class.
54 Stonedon Drive, East Tāmaki has 1,666sq m of total net lettable area on a 2,980sq m freehold site and will interest buyers who understand the criteria of what makes a quality industrial building.
The property provides 60 per cent site coverage and sits on the doorstep to Highbrook Business Park and State Highway 1 on-ramps.
Waterware, the longstanding occupant, has agreed to a new eight-year lease that will begin on settlement.
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The lease returns $320,000 plus GST per annum in net annual rental income and includes two further rights of renewal for four years each, providing a strong underlying tenant covenant from an occupant that has been on-site since 2005.
The building is the ultimate in functionality and includes a fully fenced yard with excellent access and provides further peace of mind for investors with a 100 per cent A-grade earthquake rating.
The property is strategically located only 350m from East Tāmaki’s central intersection on Highbrook Drive that leads to State Highway 1, which is approximately 3km away.
Colliers Directors Josh Franklin, Ben Cockram, and Paul Higgins have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 19 July, unless sold prior.
Originally constructed by Euroclass for Waterware in 2005, the property comprises a warehouse that spans 1,354sq m with a stud height ranging from 7.5m rising to 9.1m at the apex.
The yard provides room for containers and truck turning, with access to the warehouse provided via two canopy protected roller doors.
The immaculately presented single-level office measures 198sq m and includes recent fit-out upgrades. The owners have also invested in a new ventilation system and solar panels for improved efficiency.
The total office to warehouse ratio of 15 per cent is highly sought-after by industrial tenants.
Franklin, Director of Industrial at Colliers, says industrial investments of this size and quality are seldom brought to market.
“You can’t replicate buildings of this nature with the scarcity of land in East Tāmaki. The features of a high stud warehouse, container friendly yard, and low office to warehouse ratio make it an asset that will continue to suit a wide range of businesses,” Franklin says.
“It is perfectly suited for the occupants, as it would be for many businesses, and shapes as a low-maintenance asset given the recent capital investment and construction quality.”
Cockram, Director of Industrial at Colliers, says the property includes favourable lease terms for buyers given there are fixed annual rental increases of 3 per cent with a market review set to take place after four years, which not only provides comfort for investors but future upside.
“Waterware were established in 1989 and are a New Zealand-owned, diversified family business who are well established in East Tāmaki. The location of the property provides accessibility for clients and a convenient commute for staff being on the doorstep to some of Auckland’s largest labour pools in Flat Bush and Botany.”
Darren Yearsley, Director of Waterware, says the property has proven itself as incredibly reliable for their operations.
“We had this facility purpose built for the business in 2005. It has served our business very well and will continue to do so for many years to come.”
The property is nestled in one of Auckland’s most tightly held industrial precincts where vacancy for prime properties is only 0.1 per cent, according to the latest research from Colliers.
These vacancy rates are at historically low levels and exemplify how rarely properties like this one are brought to the open market. East Tāmaki has consistently boasted lower vacancy rates than other geographical areas.
Higgins, Director of Industrial at Colliers, says East Tāmaki remains one of Auckland’s most keenly sought industrial locations.
“The suburb’s proximity to Auckland’s CBD, Wiri, and Auckland Airport make it highly desirable for both tenants and investors in the industrial sector who are able to easily connect with the city’s transport infrastructure,” Higgins says.
“This property offers buyers the opportunity to acquire a premier industrial asset with an established tenant that is committed to a long-term lease.”
- Article supplied by Colliers
