The sale of a versatile industrial property in the central Auckland suburb of Mt Wellington presents an opportunity for investors or future owner-occupiers to buy in one of the city’s most sought-after industrial precincts.
The property at 1096 Great South Road comprises a 2,220sq m warehouse and office on a 4,400sq m freehold site. It has just over four years remaining on a five-year lease to an established vehicle dealership tenant, Mr Motors.
Investors will be attracted to the solid rental income of $325,000 net per annum, while future owner-occupiers will appreciate the ability to move in upon final lease expiry in May 2024.
Colliers International is marketing the property for sale by negotiation.
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Industrial Director Todd Kuzmich says it is an opportunity to purchase in one of the best-performing industrial locations in Auckland.
“Mt Wellington’s current vacancy rate is about 1 per cent, and demand from tenants, investors and owner-occupiers outstrips supply.
“The suburb’s central Auckland location and proximity to key staff catchments and the CBD, ports and airport continue to drive demand in the area.”
Kuzmich says the property comprises a quality industrial warehouse/office building with excellent road front exposure to busy Great South Road.
“The well-presented warehouse is situated to the rear of the site. It provides 1,686.6sq m of space with a 7m stud height at the knee rising to 8m at the apex.
“The warehouse can be accessed via four roller doors along the southern elevation, one of which is covered by a cantilevered canopy.”
Kuzmich says the office and amenity area is situated to the front of the building over a single level. It provides 489.5sq m of space including open-plan and partitioned offices, toilets and a lunchroom.
An additional 34.7sq m office is provided within the warehouse
“The remainder of the site is made up of a generous yard and carparking. The yard area along the northern boundary is fully fenced and secure,” Kuzmich says.
“Access to the site itself is via three points of egress, two off Great South Road and a third off Mt Richmond Drive.”
The property is leased to Le Autos Group Limited, trading as Mr Motors, on a five-year term from May 2019. Rental reviews to CPI are due in May 2022 and May 2023.
Final lease expiry is in May 2024, with no rights of renewal. This provides a chance for an owner, with a view to future occupancy, to generate rental income until their business can move in upon lease expiry.
Paul Jarvie, Industrial Director at Colliers International, says the current tenant was established in New Zealand in 2010.
“Mr Motors offers a wide range of both European and Japanese motor vehicles for sale, with more than 1,000 cars in stock.
“It provides a comprehensive sales service, from importing and compliance through to grooming and aftersales service and insurance.
“The company has four retail branches in addition to the Mt Wellington property, located in Grey Lynn, Henderson, Hamilton and Mt Maunganui.
“It also operates a fully equipped workshop for vehicle servicing and warranty repairs.”
Jarvie says the property is zoned Light Industry, which provides for industrial activities that do not generate objectionable odour, dust or noise emissions.
This includes light manufacturing, production, logistics, storage, transport and distribution activities.
Jarvie says Mt Wellington is an established industrial location bounded by other predominantly industrial suburbs of Penrose and Onehunga.
“The suburb benefits from excellent distribution links to Auckland’s motorway network and the staff amenities provided by nearby Sylvia Park, one of New Zealand’s largest shopping centres.
“Continued redevelopment in Mt Wellington will ensure it remains Auckland’s premier industrial precinct.”
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