Three modern units in the tightly held Silverdale industrial precinct offer prospective purchasers the chance to acquire one, two, or three high-quality assets with a strong tenant covenant in an area experiencing incredibly low vacancy rates.
42 Forge Road, Silverdale is home to the three units that span in size from 633sq m to 1,562sq m. The units sit on three stratum in freehold titles totalling 5,644sq m in land area that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
All three units are currently occupied by established tenant Hick Bros Civil Construction Ltd who combine the latest heavy plant resource with a large professional team to provide value-added engineering solutions for all facets of major infrastructure projects and land development works.
The total income from all three units is $377,996 plus GST per annum and Hick Bros are committed to long-term leases with incremental rental growth built into their agreements, offering vast appeal for buyers.
Start your property search
Silverdale is regarded as the principal industrial estate for the Hibiscus Coast, sitting at the base of the Whangaparaoa Peninsula, approximately 1km east of the intersection of State Highway 1 and East Coast Road, and a further 500m from the motorway interchange.
Colliers Directors Matt Prentice and Shoneet Chand have been exclusively appointed to market the properties for sale by deadline private treaty closing at 4pm on Tuesday 2 August, unless sold prior.
The architecturally designed, high stud units were built in 2005 and are surrounded by several quality commercial developments that have either been completed or are under construction.
Unit 1 measures 681sq m and comprises 316sq m of warehouse, 171sq m of ground floor office space, a 127sq m first floor office, and 67sq m of canopy. The net annual rental income from the unit is $93,628 plus GST.
Unit 2 is the largest building and spans 1,562sq m. The property offers a 684sq m warehouse, a 97sq m low stud workshop, a 90sq m ground floor office, 475sq m of mezzanine office, 73sq m of mezzanine storage, a 73sq m courtyard, and 70sq m of canopy. The net annual rental income from the unit is $198,688 plus GST.
Unit 3 is 633sq m and comprises a 366sq m warehouse, 47sq m of low stud workshop area, a 135sq m first floor office, a 58sq m ground floor office, and 26sq m of canopy. The net annual rental income from the unit is $85,680 plus GST.
The current leases on all three units expire in mid-2025 with final expiries in April 2029 for Unit 1, February 2037 for Unit 2, and February 2029 for Unit 3.
There is a 2 per cent fixed rental increase on the anniversary of the commencement of each individual lease. On renewal, the greater of either 2 per cent or the market rental rate will be applied.
Prentice, Director of Industrial Sales and Leasing at Colliers, says the highly functional units will hold strong appeal for prospective purchasers given the tenant covenant on offer.
“With regular rent reviews in place, buyers will be able to enjoy a steady rental stream with built-in growth for the future. Rental reviews in 2025 may allow the new owner to align the properties to market rates,” Prentice says.
“Industrial property in Silverdale remains highly sought-after and recent research from Colliers indicates an overall vacancy rate of only 0.5 per cent for industrial buildings in the area.
“For comparison, nearby Mairangi Bay is at 0.6 per cent vacancy for prime industrial sites, while North Harbour’s industrial precinct has a 1 per cent vacancy rate for prime sites.”
Chand, Director of Investment Sales at Colliers, says the properties represent a highly attractive purchasing opportunity.
“These units have all the fundamentals of an outstanding investment with an established tenant in a modern premises in a sought-after location,” Chand says.
“Given buyers can acquire one unit or all three there’s tremendous flexibility that will appeal to a wide range of potential purchasers.”
- Article supplied by Colliers
