An industrial property on the border of Mount Wellington and Ōtāhuhu in Auckland that is predominantly yard-based with a complementary office and warehouse building is available for purchase.
126 Portage Road, Ōtāhuhu has 855sqm of total net lettable area on a 4350sqm freehold, regular-shaped site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
The property is home to Auckland Contract Carriers, a privately owned company operating primarily in the greater Auckland area and other parts of the North Island.
Their current four-year lease runs until mid-2027 and there is one three-year right of renewal in place leading to a final expiry of June 30, 2030. The lease agreement provides $240,000 plus GST in net annual rental income and includes 2.75 percent fixed annual increases and a market review on renewal.
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Along with 44m of road frontage, the property also benefits from its central location within Auckland and favourable distance to key transport routes.
It’s approximately 2.2km to the Ōtāhuhu State Highway 1 motorway on-ramps and 2.6km to the Mount Wellington State Highway 1 on-ramps along with premium shopping destination Sylvia Park. The location offers the opportunity to utilise State Highway 20 and sits close to bus and train routes.
For industrial users, Wiri Inland Port, Port of Auckland, and Auckland Airport are all readily accessible via the motorway network.
Colliers directors Paul Jarvie, Brad Johnston and Dhiru Patel have been exclusively appointed to market the property for sale via auction to be held at Colliers Highbrook, Level 1, Colliers House, 52 Highbrook Drive, East Tāmaki at 11am on June 13, unless sold prior.
The building at the property comprises a 551sqm warehouse and 108sqm workshop. There is also 196sqm of office space spread across two levels and the upper floor has recently been refurbished. Warehouse access is gained via three roller doors with canopies in place.
Jarvie, director of industrial at Colliers, says the property has a strong tenant covenant and attractive investment fundamentals.
“The subject property is home to an established tenant and the success of their business has been built on unbeatable service, the highest standards, and an outstanding record of reliability. This has not only allowed them to grow but has also helped drive the success of their customer’s businesses,” Jarvie says.
“With a long-term lease in place they have shown a strong commitment to this location and the future rental increases offer built-in growth.”
Johnston, director of industrial at Colliers, says the configuration of the property has proven serviceable for the existing tenant.
“The 2913sqm of yard space offers high levels of functionality and is a rare offering in an area that has been extensively built out,” Johnston says.
“The metalled yard provides peace of mind for the tenant and is ideal for the secure storage of their trucking fleet. With the building located on the north-western boundary of the property there is convenient access to the rear of the yard within the site.”
The latest research from Colliers notes the industrial vacancy rate across the wider Auckland region is only 1.75 percent, a figure that has continued to remain low for the past decade, owing to continued demand and a lack of supply in the market.
Patel, associate director of industrial at Colliers, says this undersupply of industrial property makes it a keenly sought asset class among buyers.
“Discerning investors have long coveted the strong investment fundamentals that have underpinned the industrial property sector in Auckland,” Patel says.
“This property offers buyers the opportunity to acquire an asset with an established tenant in a well-known location and we encourage all interested parties to make contact with us to explore their options.”
- Supplied by Colliers
