The land and buildings of a highly functional property that is home to an established tenant in Napier’s industrial hub of Onekawa offers prospective purchasers the opportunity to acquire an asset with a strong tenant covenant.
22 Dunlop Road, Onekawa has 2,268sq m of total net lettable area on a 3,573sq m freehold site that offers dual road access and is zoned Main Industrial under the Napier City Operative District Plan.
The property is home to Reinforcing Steel & Mesh Limited who are committing to a new five-year lease at a net rental of $222,050 plus GST per annum from settlement.
The strategic location provides convenience for the occupants with the Napier Port and Hawke’s Bay Airport both within 6km, while the Napier CBD is approximately 4km away.
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Onekawa continues to experience strong demand among industrial tenants with vacancy rates sitting around 1 to 2 per cent. An increase in the supply of quality industrial stock is unlikely in the short to medium-term, putting further pressure on demand.
Calum Ironside, Industrial and Commercial Sales Broker at Colliers Hawke’s Bay, has been exclusively appointed to market the property for sale via tender, closing at 5pm on Tuesday 25 July, unless sold prior.
The property comprises an industrial warehouse that was built in the 1960s and has a main workshop that measures 1,211sq m with a further 183sq m lean-to addition, alongside a 52sq m staff amenities annex.
The associated administration office spans 130sq m and has a 37sq m veranda, while there is also a heavy-duty canopy measuring 692sq m that was added in the early 2000s.
Ironside says the opportunity to acquire an industrial property with a longstanding occupant will be highly appealing for buyers.
“The current tenants have signalled their intent by agreeing to a new five-year lease that also includes two further rights of renewal for five years each,” Ironside says.
“The lease agreement has favourable terms built in, including 3.5 per cent annual increases and market reviews on renewal. These combined factors make this an enticing investment that would be a strong addition to any portfolio.”
The property sits between Taradale Road and Dunlop Road and is surrounded by a range of notable brands such as Vulcan Steel, Tile Depot, and Mitre 10 Mega. There is also a Kmart less than 1km away.
Taradale Road offers excellent connectivity to State Highway 2 opening up the rest of the Hawke’s Bay area and beyond.
“The current premises provides high levels of usability for the existing occupants for their business operations due to the easy access from the street and the generous yard space.
“The nearby area remains keenly sought by industrial businesses given the accessibility to the motorway network and Hawke’s Bay’s transport infrastructure.”
Ironside says when examining all of the pertinent factors in play, this property shapes as an outstanding passive investment opportunity with long-term upside.
“With favourable lease terms and an established occupant in place, this offering has strong underlying investment fundamentals and will pique the interest of discerning buyers.”
- Article supplied by Colliers
