With overall vacancy in the Auckland industrial sector at sub-1 percent, and industrial property continuing to outperform other commercial asset classes on long-run returns and performance, opportunities for prospective buyers and occupiers are thin on the ground in the region.
An institutional-grade Heavy Industry-zoned property at 22 Ha Crescent, Wiri is expected to attract strong interest, according to agents Scott Campbell, Sunil Bhana, James Hill, and Greg Hall of Bayleys.
The team is marketing the property on behalf of owners Industre Property Tahi Limited, with the deadline private treaty campaign closing 4pm, Tuesday 20th June, unless sold prior.
Occupying a 1.09ha (more or less) site, the 2006-built property has around 5,470sqm of modern high-stud warehousing, 488.75sqm of single-level offices office and amenities, a 1,421sqm canopy, and a 1,377sqm yard with full drive-around capability.
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The warehouse has a stud height of 8.15m at the portal knee rising to 9.6m at the central apex, with access provided by three roller doors on the eastern face of the building with an additional two doors on the northern face which incorporates dock levellers.
ASX-listed Tasman Liquor Company’s lease expires 30th June 2024, and returns net holding income of $894,524 per annum plus GST, which agents believe is significantly under-rented.
Campbell said the property offers the “dream combo” of location, scale, functionality, and low office-warehouse ratio for maximum efficiency, and because the current tenant’s lease expires in 12 months’ time, it will attract both owner-occupier buyers and investors, with the latter able to factor in rental upside upon existing lease expiry.
“Owner-occupiers will recognise that with the dire shortage of quality, modern industrial stock with decent size and functionality, this property represents a pathway to independence with the holding income ticking over until the sitting tenant exits mid-next year,” he said.
“As the property is demonstrably under-rented against current benchmarks, it offers exceptional value for an investor who could benefit from resetting the lease to market on expiry.”
Campbell said while there could potentially be some easing of the market this year as economic fundamentals start to bite, the industrial sector is well-insulated off the back of unrelenting demand for pivotally-located and generic large warehousing.
“Logistics and distribution are proven to be non-cyclical segments of the industrial market, and supply is struggling to meet demand right across Auckland.
“Wiri is the chosen location for many high-performing national and international businesses due to its streamlined access to key arterial routes as well as logistics facilities including the Wiri Inland Port and Auckland International Airport.
“The Ha Crescent property is neighboured by National Storage, automotive distributors YHI (New Zealand), logistics and shipping firm EIF International, functional health products company Alpha Group Holdings and aluminium cladding business Archimax.
“It is also just 2km from the Wiri Logistics Estate where NZ Post’s flagship Auckland processing centre is under construction and due to open later this year.”
As the property is significantly under-rented, Bhana said add-value investors will appreciate the potential to lift rental rates for a new occupier mid-next year, and there are also some other improvements that could be made to the premises to further increase its market appeal.
“The extensive existing canopy could be enclosed to allow even better security and weatherproofing of operations, however, in its current form, the property has great credentials for a broad range of occupiers.”
Ha Crescent is located just off Roscommon Road, a main arterial providing easy access to State Highway 20 – which links with State Highway 1 at Manukau – and now directly links with State Highway 16 via the Waterview Tunnel providing access to West Auckland and Auckland’s CBD.
- Article supplied by Bayleys
