A large-scale food production facility in Wairau Valley on Auckland’s North Shore that is home to an established tenant and includes development land is being offered to the market for sale.
8-10 Poland Road, Wairau Valley is occupied by an international bakery company that offers a comprehensive range of products and services for in-store bakery solutions and is listed on the Swiss stock exchange.
The property has approximately 2,583sq m of total building area on a 6,953sq m freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan. There are 30 dedicated on-site car parks offering convenience for staff and suppliers.
Having occupied the site for a number of years, the tenant recently agreed to a new five-year lease renewal that will begin in October.
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Their lease agreement includes multiple future renewals and has a final expiry of 18 October 2044. The annual rental income from the property is $447,000 plus GST and operating expenses. This is a high-yielding investment opportunity.
The property is surrounded by a range of well-known retailers, including Bunnings, Mitre 10, and Pak’nSave. The Northern Motorway interchange at Tristram Avenue is only 750m away.
Colliers Directors Matt Prentice and Shoneet Chand have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Tuesday 16 July, unless sold prior.
Originally constructed in the 1960s, the property includes a 1,700sq m food processing warehouse, 135sq m freezer, two levels of modern offices that span 232sq m, an enclosed mezzanine production level that measures 324sq m, and a 120sq m rear workshop.
It has been refurbished multiple times during recent years and is a highly functional facility for the occupants.
Prentice, Director of Industrial Sales and Leasing at Colliers, says the strength of the tenant covenant makes this an investment opportunity that will draw considerable interest among prospective purchasers.
“The occupants of the property are longstanding and have signalled their clear intent to remain at the facility by taking up the next renewal of their lease,” Prentice says.
“Their lease terms also include rent reviews on each second anniversary following the commencement date of the lease, which provides potential for future rental growth.”
The Wairau Valley industrial precinct is a sought-after location on the North Shore with a number of prominent firms in the area, alongside small operators.
There is limited land supply and the latest research from Colliers notes the vacancy rate for prime industrial property in the Wairau Valley precinct is only 0.7 per cent, making it a tightly held area.
Chand, Director of Investment Sales at Colliers, says the additional land at the rear of the subject site offers future development potential.
“While the tenant at the property is well established, there is scope to intensify the usage of the site given the low site coverage,” Chand says.
“This means buyers with a long-term view may be able to unlock the true value of the property down the line by repositioning it or adding to it."
- Supplied by Colliers
