An industrial office and warehouse building with an established tenant that is signed to a long-term lease in Rosedale on Auckland’s North Shore will pique the interest of buyers looking for a high-quality asset with a steady rental stream.
6 Te Kea Place, Rosedale is a single-level property with 940sq m of floor area on a 1,654sq m freehold title that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
Industrial properties on their own freehold titles in this medium size range are keenly sought by investors and occupiers and there will be strong interest in the market for this offering.
Leading health supplement supplier Hi Well is the tenant and they are midway through a six-year lease that includes two further rights of renewal for four years each, leading to a final expiry in January 2034.
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The property provides $170,000 plus GST in net annual rental income and there are market reviews set to take place every two years with the next scheduled for 1 February 2024.
The 15 dedicated on-site car parks provide convenience for the occupants and visitors, while there’s ample off-street parking.
Te Kea Place is a short cul-de-sac running off the eastern side of William Pickering Drive in the sought-after North Harbour Industrial Estate and offers easy access to the nearby motorway network that has undergone recent upgrades to help improve connectivity across Auckland.
Colliers Brokers Matt Prentice and Mike Ryan have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Tuesday 14 March, unless sold prior.
Construction is conventional with reinforced concrete foundations and floors, steel portal framework, and mixed exterior walls of concrete tilt slab and long run steel cladding to the exterior of the high stud warehouse, which measures 617sq m.
The office spans 301sq m and the exterior features a sprayed texture finish. There’s also a warehouse manager’s office measuring 22sq m as well as an additional warehouse mezzanine area.
Prentice, Director of Industrial Sales and Leasing at Colliers, says the property comes with a strong tenant covenant that will be appealing to buyers.
“Hi Well provides a wide range of natural health products that are made with New Zealand’s pure and natural ingredients. Their products can be purchased around the world as they have official distributors and partners in many countries,” Prentice says.
“Hi Well products are manufactured from GMP-certified facilities, ensuring consistently safe and effective product quality.
“Prospective purchasers will also note with an upcoming market rental review there may be the opportunity to bring the current rental rate closer to the current market rate, providing future rental growth.”
Ryan, Industrial Sales and Leasing Broker at Colliers, says Rosedale remains a tightly held industrial location on the North Shore because there is a distinct lack of supply of available space.
“Research from Colliers notes the vacancy rate for prime industrial properties in the North Harbour precinct is only 0.4 per cent, much lower than the Auckland-wide average of 1.8 per cent,” Ryan says.
“This speaks to the desire of businesses to be located in this area given the access to the motorway network and surrounding amenities. The nearest Northern Motorway interchange is approximately 2km to the east, while Albany Highway is approximately 300m to the west.
“Rosedale is also home to large-scale industrial operators such as Crown Worldwide, EBOS Healthcare, Amcor Packaging, CourierPost, and Revera.
“This property has all of the key fundamentals of an outstanding passive investment opportunity with an established occupant in a highly functional premises signed to a long-term lease with favourable terms and we encourage all interested parties to contact us immediately.”
- Article supplied by Colliers
