A highly visible property in the popular industrial precinct of Wiri in South Auckland offers prospective purchasers the chance to acquire a top-tier asset with a steady rental stream.
99 Kerrs Road, Wiri has 2,865sq m of total net lettable area on a 4,295sq m freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
The property is currently tenanted by Metal Concepts Limited and is being offered to the market as a sale and leaseback with a new eight-year lease term that will begin upon settlement. There is one further right of renewal in place for eight years indicating their long-term commitment to the location.
The total net annual rental income from the property when the new lease is in place will be $614,080 plus GST with favourable rent reviews included in the lease agreement.
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Wiri has grown rapidly to become a key industrial hub in Auckland, owing to its connectivity to crucial transport infrastructure.
State Highway 1 is 2.5km away, while the Wiri Inland Port is only 1.7km away. Auckland Airport can be reached in 15 minutes.
Colliers Directors Hamish West, Mitch Broderson, and Edward Washer have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 3 April, unless sold prior.
Originally built in the 1990s, the office portion of the building, which is split over two levels and offers 680sq m of total floor area, has recently undergone an immaculate refurbishment.
The clear span warehouse measures 2,185sq m and is situated at the rear of the site with a stud height of 6.25m at the apex.
The warehouse can be accessed via three roller doors which are situated along the eastern elevation.
This elevation also benefits from a canopy which runs for a large portion of the warehouse facing east.
Access to the site is via a single driveway off Kerrs Road. Security fencing is provided to all site boundaries.
West, Director of Industrial at Colliers, says this purchasing opportunity is underpinned by a strong tenant covenant.
“Metal Concepts primarily work with mild steel, stainless steel, and aluminium with a range of finishes and bespoke products that are manufactured in Auckland and supplied nationwide and internationally,” West says.
“Their lease agreement includes annual fixed rental increases of 3.5 per cent with market reviews set for the midpoint of their lease terms. This built-in rental growth will be highly appealing and astute investors will recognise the value on offer.”
Industrial floorspace across Auckland is in short supply as demand remains strong. The overall vacancy rate for industrial property across the region is 1.8 per cent according to the latest research from Colliers.
Broderson, Director of Industrial at Colliers, says the supply of industrial floorspace is even more constrained in the Manukau and Wiri corridor.
“Data from Colliers notes a vacancy rate of 0.9 per cent for prime floorspace in the precinct where the subject property is located, pointing to a notable lack of supply,” Broderson says.
“With a long-term lease in place from the occupant, this property sets up as an outstanding passive investment opportunity.”
Washer, Director of Industrial at Colliers, says the growth of Wiri as an industrial location means there’s a range of big-name firms that have chosen to operate from there.
“Well-known business such as The Warehouse, Frucor, Americold, Kmart, Downer, and Gough Group are all based in Wiri and the improved accessibility of the area through roading infrastructure has greatly enhanced its appeal,” Washer says.
“The area remains tightly held among investors with few properties transacted on the open market.”
- Supplied by Colliers
