For the first time a blue-chip investment opportunity in a heavily trafficked industrial corridor in the northwest of Auckland has come to the market.
1-5 Pua St and 80 Rotu Drive, Westgate, is a versatile commercial bus depot opened in September 2022.
It was purpose-built for Pavlovich Coachlines to serve as its Auckland hub of operations.
Spread across three land titles at 1 and 5 Pua St and 80 Rotu Drive, it has nearby motorway on-ramps for convenient access to a number of northwestern Auckland Transport bus routes.
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The property is for sale by deadline private treaty closing Thursday May 4, through JLL.
The Westgate bus depot will appeal to investors seeking to add value and diversity to their portfolios. The three titles included in the sale combine for a total freehold land area of 12,882sq m, ample for the amenities and conveniences of a modern bus depot and head office.
The property includes an eight-bay bus workshop, built-in office space, wash station, diesel storage, carparking and a safe, one-way through-road with dedicated entrances and exits.
To be sold with the long-term lease to Pavlovich Coachlines in place, with potential final expiry in 2049, the buyer who secures this property will reap the benefits of consistent income while considering future value-add or development opportunities.
JLL logistics and industrial director David Mayhew highlights the potential for the growth of public transport in one of Auckland’s fastest growing areas.
“The tenancy to Pavlovich Coachlines is a key factor in the immediate value of this asset, with a 15-year initial lease term in place with two rights of renewal,” says Mayhew.
“An estimated 80 per cent of Pavlovich business is on contract to Auckland Transport, with net rental set to be reviewed to $964,380 plus GST in August 2023.
“With the northwestern bus improvements well under way, and an expectation of population growth in the immediate area, this asset will play an important role in the public transport space.”
JLL logistics and industrial director Luke McGill says the tenant also benefits from the depot’s convenient location. Auckland’s CBD is only 20 minutes away and the property is near the established Westgate commercial precinct.
“Located in the northwestern corridor, one of Auckland’s strongest growth areas, Westgate is the future of the modern township, fusing living, working and recreation,” says McGill.
“With the convenience of direct motorway access to SH1, SH20 and SH16, there are suitable and easily accessible links to the north and south of the city,” he adds.
The JLL directors say the Pavlovich Coachlines hub has long-term potential and the security of being near major development sites in a growth area.
— Article supplied by JLL
