A large-scale property with multiple warehouses and office buildings in the sought-after industrial precinct of Wiri offers buyers the chance to secure a hard-working passive investment with long-term upside.
39 Hobill Avenue, Wiri provides 6,167sq m of total net lettable area on a 10,000sq m freehold site that is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.
The property contains three adjoining warehouses, all constructed at different times but with the ability to accommodate the use of gantry cranes, and two stand-alone office buildings.
The two-storey office buildings include basic amenities, and the property has two points of access from Hobill Avenue with a right of way that follows the northern boundary leading to a sealed area that is utilised as a parking area and yard at the rear of the site.
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The tenant is Nauhria Reinforcing Ltd who are selling the property as part of a sale and leaseback agreement that includes a 10-year lease with two further rights of renewal for five years that will commence at settlement. The lease will provide $1,025,114 plus GST per annum in rental income.
Operating for over 30 years, Nauhria Reinforcing is regarded as one of New Zealand’s leading reinforcing steel suppliers.
As part of the Nauhria Group, Nauhria Reinforcing shares corporate strengths with their sister companies and brands – Nauhria Precast, Monarc Creative Precast, Vida Precast, Stahlton Prestressed Concrete, and Balcrom Reinforcing.
Collectively, the group of companies maintain a strong presence in the market and have received a multitude of awards and accolades, including the Supreme Business Excellence Award at the Westpac Auckland Business Awards in 2015 and the Supreme Concrete3 Sustainability Award at the annual New Zealand Concrete Conference in 2013.
Wiri is one of the fastest-growing industrial locations in Auckland given its favourable proximity to the motorway network, offering the ability to transit west, north, or south. Wiri is also home to a number of high-profile industrial operators, including The Warehouse, Frucor, Americold, Kmart, Downer and the Gough Group.
Colliers directors Mitch Broderson, Greg Goldfinch, and Edward Washer have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 10 August, unless sold prior.
The largest warehouse was constructed in the 1970s and spans 3,049sq m, while the warehouse built in 2006 covers 1,021sq m and the third and final warehouse, constructed in 2008, measures 1,468sq m.
The original office measures 175sq m, while the newer office provides 329sq m of space. There’s 125sq m of amenities and the yard spans 1,600sq m.
Broderson, Associate Director of Industrial at Colliers, says the property shapes as a highly desirable purchasing opportunity that will appeal to a wide range of buyers.
“This large-scale site is home to a highly functional and versatile premises that has proven extremely serviceable for the current occupier,” Broderson says.
“The triple net lease includes a 3 per cent annual increase and market rent reviews every five years, providing buyers with favourable terms that will ensure continual rental growth.
“Given the separation of the office and warehouse buildings there could also be potential to create a split-risk investment opportunity in the future.”
Goldfinch, National Director of Industrial at Colliers, says Wiri is an in-demand industrial precinct.
“The completion of the Waterview Tunnel has created greater access to West Auckland, Albany, and areas further north as well as Auckland’s CBD, which is approximately 24km away,” Goldfinch says.
“Auckland Airport is a mere 9.4km away and the other prime industrial locations throughout South Auckland are also easily accessible.”
Washer, Director of Industrial at Colliers, says properties of this zoning are tightly held given the scarcity of supply throughout Auckland.
“The Business – Heavy Industry Zone provides for industrial activities that may produce objectionable odour, dust, and noise emissions,” Washer says.
“Air quality emissions standards that are different to the rest of Auckland will often apply. A low level of air quality amenity applies in the Business – Heavy Industry Zone. A key attribute of the zone is that it contains sites large enough to accommodate large-scale industrial activities.
“This property has all of the fundamentals that buyers are looking for given it has a strong tenant covenant with a long-term lease in place. Any astute investor looking for a bottom drawer investment should consider this offering.”
- Article supplied by Colliers
