An industrial property in the prime location of East Tāmaki in Auckland that is home to an ASX-listed tenant is available for purchase and will pique the interest of buyers looking to acquire an asset with a steady rental stream and future upside.
24 Neilpark Drive, East Tāmaki has 1,541sq m of net lettable area on a 2,460sq m freehold site.
Boasting a functional warehouse and office, the property is occupied by the DGL Group who operate in the materials sector and have experienced strong growth during the past two decades across their Australian, New Zealand, and international locations.
They began a six-year lease in December 2022 and their agreement returns $240,000 plus GST in net annual rental income. There are two further rights of renewal for three years each leading to a final expiry of 30 November 2034. The property is ideal for their needs being zoned Business – Heavy Industry Zone, which is hard to find in this size bracket.
Start your property search
Neilpark Drive is a private street that runs off both main arterials of Highbrook Drive and Kerwyn Avenue.
Sitting on the doorstep to Highbrook Business Park and approximately 3.7km from the State Highway 1 on-ramp, the subject property is strategically located. The award-winning business park in Highbrook offers various amenities, including hotels, cafes, childcare facilities, and a gym.
Colliers Brokers Greg Watson, Paul Higgins, Josh Franklin, and Nelson Raines have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 14 November, unless sold prior.
The building was constructed in two stages and comprises an original warehouse that spans 907sq m, a new warehouse that measures 553sq m, and 81sq m of office and amenities space.
Watson, Associate Director of Industrial at Colliers, says a strong office to warehouse ratio like the one in the subject property is a sought-after feature among buyers.
“The warehouse benefits from road frontage, dual access, and four roller doors, lending itself to potentially being split into separate tenancies if required. This versatility means it could serve as a split-risk investment in the future.” Watson says.
“The property is fully fenced and secure with an electric gate system providing peace of mind for the occupants.”
Higgins, Director of Industrial at Colliers, says the strength of the tenant covenant will be appealing for astute investors.
“DGL Group, a publicly listed Australian company, offer an unparalleled end-to-end supply chain service, including chemical and industrial formulation and manufacturing, warehousing and distribution, waste management, and environmental solutions to more than 3,200 customers around the globe,” Higgins says.
“There are three-yearly market rent reviews in place with the next review due on 1 December 2025 meaning there is potential future rental growth on offer that will be attractive to buyers.”
The location of East Tāmaki has long been sought-after by industrial occupiers given its access to the motorway network, Auckland Airport, and the CBD.
Franklin, Director of Industrial at Colliers, says research from Colliers indicates how tightly held the area is.
“The latest vacancy surveys from Colliers note that prime industrial floorspace in the East Tāmaki precinct has a vacancy rate of only 0.4 per cent,” Franklin says.
“The overall vacancy rate for industrial property in Auckland is only 1.75 per cent, suggesting it remains a coveted asset class among buyers. A stand-alone building of this size and location is always in demand from buyers and tenants.”
Raines, General Manager of Colliers West Auckland, says when examining all of the key factors relating to this property they combine to make a compelling purchasing opportunity.
“The chance to acquire an asset of this nature with an established tenant in one of Auckland’s most desirable industrial precincts is something that purchasers should closely examine,” Raines says.
- Supplied by Colliers
