Onehunga sites offer industrial strength in city

Two large neighbouring sites are up for sale in Onehunga, offering a rare chance to secure heavy industrial premises close to Auckland’s CBD.

The more than 6,100-square-metre property at 57 Angle Street is leased to Kiwi Waste and Recycling.

The adjacent property, spanning more than 2,500 square metres at 63 Angle Street, is home to Strong Parts Group.

Both are occupied on long triple net leases, with 63 Angle Street also offering the alternative option of vacant possession.

Established in Auckland in 2019, Kiwi Waste and Recycling is a leading player in its industry, with transfer stations at another neighbouring Onehunga site and in Takanini. By processing solid waste and transferring most for recycling and re-use, it offers a modern, convenient and cost-competitive alternative to landfills.

The company’s Angle Street premises generate a net rental return of $333,494 plus outgoings and GST per annum. The current lease runs through to 2029, with a further eight-year right of renewal.

Strong Parts Group is one of New Zealand’s most reputable auto parts recyclers, specialising in Honda, Isuzu, Subaru and Great Wall vehicles. The business has operated new and used car parts and dismantling sites for over 40 years.

It pays an annual net rent of $200,277 plus outgoings and GST for the Angle Street site on a lease that will run through to 2029 unless a buyer opts for vacant possession.

Both sites for sale are occupied under triple net leases which insulate owners from all repair, maintenance and capital expenditure costs. The lease agreements lock in annual rental growth of 2.5 percent.

The properties are zoned Business – Heavy Industry under Auckland’s unitary plan, a sought-after designation with few purchasing options in such a central location.

Combined with their well-connected location with easy motorway access, this is expected to make them highly attractive to buyers looking to purchase one or both of the sites.

The freehold properties at 57 and 63 Angle Street, Onehunga, Auckland, are being marketed for sale on behalf of ASX-listed commercial property investor Centuria NZ (formerly Augusta), by Sunil Bhana, Mike Houlker, and James Valintine of Bayleys Real Estate.

Each will be sold via a separate deadline private treaty process closing on Thursday 21 September, unless they are sold prior.

The approximately 1,846-square-metre building at 57 Angle Street sits on a site of some 6,189 square metres, with a substantial rear yard and eight car parks.

Bhana said the building contained a warehouse of some 933 square metres opening via multiple roller doors to a large canopy, as well as an approximately 429-square-metre workshop, plus garage, mezzanine and office areas.

“This is a hard-working, versatile property with dual street access that provides for heavy industry use, a scarce commodity in locations this close to Auckland’s CBD.

“With a quality long-term industrial tenant in place, this is an attractive hands-off investment in Auckland’s Industrial heartland. The current rent is well below a market level, ensuring strong future upside,” said Bhana.

Houlker said 63 Angle Street comprised an approximately 1,100-square-metre building on some 2,509 square metres of land.

The premises encompass an approximately 530-square-metre workshop, along with around 400 square metres of first-floor storage, and offices on two levels. A canopy and yard add to the functionality for industrial users.

“This property can either be purchased with vacant possession or a buyer can retain the existing tenant on a long-term triple net basis.

“With limited availability for industrial workhorse-type industries, it will appeal to buyers who recognise the scarcity of an asset of this type in the tight Auckland industrial market,” said Houlker.

Valintine said the sites for sale were underpinned by high land value.

“Onehunga is home to one of the most intensively developed industrial localities in Auckland, featuring many national and international occupiers.

“It’s a tightly held industrial precinct with very low vacancy rates where properties of the size now on offer are rarely available to the market,” said Valintine.

Bhana said the area benefited hugely from its excellent links to motorways, arterial roads and public transport.

“The Angle Street properties provide direct access to the Southwestern and Southern motorways via Church and Neilson Streets, making this a highly efficient location for businesses around 20 minutes’ drive from Auckland’s CBD and port area.

“The opening of the Waterview Tunnel in recent years has improved access and increased demand for space in an area already in short supply,” Bhana said.

- Article supplied by Bayleys