A versatile industrial property in the Auckland suburb of Riverhead that offers rental income and a portion of the site that is available with vacant possession is being presented to the market for sale.
6 Sawmill Road, Riverhead has 4,773sq m of total land area on a freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
The property is split into three zones, the Upper Terrace, which is leased to J Scott and Company Limited; a stormwater pond that is maintained by the Kumeu Industrial Park Association; and the vacant Lower Terrace that includes two temporary serviced canopy sheds in an 830sq m metalled yard.
The income from the tenancy from the Upper Terrace is $108,000 plus GST and operating expenses per annum and the current two-year lease agreement for J Scott and Company Limited runs until 30 June 2025.
Start your property search
It has two further rights of renewal for two years each, leading to a final expiry of 30 June 2029.
The lease also includes 2.5 per cent annual rental increases and market reviews on renewal.
A shared concrete driveway establishes the main access to the Upper Terrace.
The Lower Terrace has a separate security gated access by way of Forestry Road.
Riverhead is part of Auckland’s growing north-west region alongside suburbs such as Kumeū, Hobsonville, Whenuapai, and Westgate that are all undergoing commercial, residential, and retail development.
Colliers Directors Ryan de Zwart and Jimmy O’Brien have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 27 March, unless sold prior.
The Upper Terrace tenancy includes a stand-alone office building spanning approximately 94sq m, including the deck, as well as a 241sq m workshop that has a stud height ranging between 6m to 7m and can be accessed via three roller doors. The yard measures 650sq m.
De Zwart, Associate Director of Industrial at Colliers, says the property will hold appeal for owner-occupiers, developers, and investors given the current layout of the site.
“With an established tenant in place there is a steady rental stream on offer meaning an owner-occupier may purchase the property and set up their operations in the Lower Terrace, while receiving valuable income,” de Zwart says.
“Alternatively, an investor may choose to acquire this property and then lease the Lower Terrace.”
Industrial vacancy rates remain stubbornly low across Auckland, according to the latest research from Colliers.
The data notes the overall vacancy rate for industrial property across the wider city is only 1.8 per cent.
O’Brien, Director at Colliers Auckland North, says Riverhead is positioning itself as a sought-after industrial precinct in the city’s growing north-west area.
“Roading developments have enhanced the accessibility of Riverhead, while the Westgate Shopping Centre can be reached from the subject property in approximately 10 minutes. The centre of Riverhead is only three minutes away,” O’Brien says.
“The surrounding industrial park is set to undergo a wastewater upgrade and transition its water supply from a bore to external provision from Watercare.
"These planned infrastructure upgrades will ensure the future viability of the site as the surrounding area undergoes strong projected demographic growth.”
The Business – Light Industry Zone 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
