An A-grade industrial asset with a blue-chip tenant in the rapidly developing West Auckland suburb of Hobsonville is being presented to the market for sale.
6-8 Inanga Street is home to AMI RepairHub Hobsonville, and the brand-new, stand-alone property has 2,657sq m of total floor area on a 4,721sq m freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
The tenant, IAG New Zealand, is the largest general insurer in the country, trading under the AMI, State, NZI, NAC, Lumley, and Lantern brands.
IAG New Zealand have a 10-year lease that runs until December 2033 and there are two further rights of renewal available for three years each.
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The total net annual rental income from the property is $565,110 plus GST and outgoings, while the lease agreement includes built-in annual rental growth throughout.
With multiple access points and 24 dedicated car parks, the property offers convenience for those who use it, while a key State Highway 16 interchange that links West Auckland to major transport facilities such as the Port of Auckland and Auckland Airport is situated nearby.
The popular Westgate Shopping Centre is less than 3km away, meaning there’s a host of amenities on the doorstep.
Colliers Directors Matt Prentice and Shoneet Chand have been appointed alongside Matt Mimmack and Matt Preston from Bayleys to market the property for sale via deadline private treaty closing at 4pm on Thursday 21 March, unless sold prior.
The building, which includes a tenant-specific fit-out, offers 1,999sq m of high stud warehouse space that is accessed via three motorised roller doors, and small offices across two floors.
There is also a sealed yard measuring 1,236sq m, along with a large power supply to the premises.
Prentice, Director of Industrial Sales and Leasing at Colliers, says the combination of a first-class tenant signed to a long-term lease in a premium building with low site coverage makes this a highly attractive passive investment opportunity.
“IAG New Zealand is part of Insurance Australia Group, an ASX-listed company with general insurance businesses in Australia and New Zealand,” Prentice says.
“Not only does this offering present a strong tenant covenant, but there are also enticing lease terms on offer for the new owner given the built-in rental growth through annual and market increases.
“If all rights of renewal are exhausted this agreement will run until December 2039.”
Mimmack, Director of Commercial at Bayleys North Shore, says Hobsonville has fast become a thriving commercial and industrial hub with a growing residential catchment that topped 10,000 people in June 2022.
“There are multiple education facilities and green spaces in the area, which is considered family friendly,” Mimmack says.
“The expansive array of nearby amenities, including access to New Zealand’s first Costco, is a major drawcard.”
Industrial property continues to remain a sought-after asset class among investors given the low vacancy rate across Auckland that is underpinned by a lack of supply.
Chand, Director of Investment Sales at Colliers, says Hobsonville has become the location of choice for a strong collection of well-known firms who have targeted the area for expansion.
“The subject property is surrounded by companies such as National Mini Storage, Mainfreight, and Bidfood who have all set down roots in Hobsonville as the location continues to grow,” Chand says.
“This modern, highly functional asset is a trophy investment that discerning buyers will recognise as one of the premier purchasing opportunities of the year.”
The Business – Light Industry anticipates industrial activities that do not generate objectionable odour, dust, or noise. This includes manufacturing, production, logistics, storage, transport, and distribution activities.
- Supplied by Colliers
