The land and buildings of a major industrial site in Swanson offer prospective purchasers the opportunity to secure a premium asset with a strong tenant covenant and extensive future development potential.
The property at 608-612 Swanson Road, Swanson has a total site area spanning 2.7366ha spread across seven unit titles with 4,960sq m of total net lettable area.
The property is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
There are four existing buildings on the site, plus a sand store canopy structure. Part of the middle area of the site has been formed into yard space and the rear of the site offers 1.4934ha of undeveloped land.
Start your property search
The front building is leased to Ateck Steel Construction and the rear buildings are leased to Industrial Sands.
Both occupants are well established at the property with long-term leases in place and the combined annual rental income is $618,416 plus GST.
The property is located in the heart of Swanson’s tightly held industrial precinct and is strategically located near two train stations – Swanson and Ranui – on the Western Line. Auckland’s CBD is less than 20km away and can be reached in approximately 22 minutes in off-peak hours.
Colliers Director Josh Coburn and colleague Caroline Cornish have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 7 September, unless sold prior.
The site was originally subdivided into seven unit titles in 1991 and these have been reorganised more clearly in recent times to ensure the buildings sit within their respective titles in a usable manner.
Industrial Sands, a leading manufacturer of high-quality sands and aggregates, is the anchor tenant and leases 3,963sq m of space spread across three buildings, yard, a canopy, and a sand store area.
They began a seven-year lease on the premises in June 2020 and have two further rights of renewal for seven years each, leading to a final expiry of 31 May 2041.
Their lease provides $529,193 plus GST in net annual rental income.
There are three-yearly market rent reviews in place with the next one scheduled for June 2025.
Ateck Engineering leases 852sq m of warehouse space and 145sq m of office area and they also have access to two metaled yards.
They are in the middle of a six-year lease with one further right of renewal for six years, leading to a final expiry of 31 December 2030.
Their lease provides $89,223 in net annual rental income and there are further CPI and market rent reviews in place.
Cornish, Associate Director of Investment Sales at Colliers, says the property is a premier purchasing opportunity.
“Buyers will be able to enjoy a significant rental stream of $618,416 plus GST per annum from the existing tenants who are established occupants of the highly functional industrial facilities at the site,” Cornish says.
“The true value in the property may lie in the ability to develop the substantial landholding at the rear of the site, which spans 14,934sq m and could be utilised for a range of different purposes.
“The Light Industry zoning anticipates industrial activities that do not generate objectionable odour, dust, or noise. This includes light manufacturing, production, logistics, storage, transport, and distribution activities meaning the future owner will have many options at their disposal.”
Coburn, Director of Site Sales at Colliers, says it is rare to see the combination of existing rental income and development potential rolled into one site in an area of Auckland that is experiencing ongoing growth.
“Swanson is undergoing significant transformation from a residential and commercial perspective,” Coburn says.
“The Westgate motorway interchange is only 12 minutes from the property which, combined with the rail links, makes this location very accessible. The West Auckland area has an excellent workforce catchment that this location also benefits from.”
Coburn says the subject property offers a number of key features that will make this a sought-after purchasing opportunity among astute buyers.
”There is built-in rental growth given the upcoming market and CPI reviews for the existing tenants that will be highly attractive to purchasers, and we encourage all interested parties to contact us to discuss the many opportunities that this site offers.”
- Article supplied by Colliers
