A performing industrial investment off one of Auckland’s busiest link arterials provides investors with an immediate opportunity to secure a long-term, income-generating asset in a prized industrial location.
Bayleys Capital Markets, Industrial and Logistics director Sunil Bhana is marketing the 4,451sqm (more or less) freehold property at 4-6 Sims Road alongside colleagues James Valintine and Mike Houlker.
The property features in Bayleys’ latest Total Property portfolio and is offered for sale by deadline, closing at 2:00 pm on Thursday, 5th December 2024 (unless sold prior).
“Leased to iconic New Zealand business Harvey Furnishings - who have provided home furnishings and custom manufacturing services nationwide since 1958 - on a new 10-year triple net basis, the modern facility offers investors a blend of stability, built-in rental growth, and a reputable tenant – making it an ideal addition for those seeking reliable diversification in their portfolios.
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“With the long lease recently commenced and generating $871,250 net pa, the property promises consistent returns in one of Auckland’s best-established industrial locations.
“Investors will be drawn to its rewarding built-in growth mechanisms, with the lease offering fixed annual rent increases of 2.5 percent and uncapped market reviews every five years. This ensures the asset’s income potential can keep pace with market conditions. A 12-month bank guarantee offers an additional layer of security.”
Spanning 3,952sqm (more or less), the property features functional facilities suited to versatile industrial use, including four warehouse bays, approximately 1,075sqm of mezzanine office space, and a new reception area.
Situated between Auckland’s CBD and the International Airport, the property benefits from strategic geographic appeal.
Bayleys South Auckland Industrial Sales and Leasing director James Valintine says that as one of the region’s primary industrial zones, Penrose is supported by extensive transport links, including State Highway 1, the Southeastern Highway, and other key arterial routes.
“This accessibility, combined with a nearby residential catchment and comprehensive local amenities, has driven consistent demand for industrial property in Penrose, attracting a diverse mix of tenants across logistics, manufacturing, and trade-related businesses.
“Amid steady demand for industrial assets and a decelerating pipeline of new supply, properties featuring entrenched tenant covenants and built-in rental growth mechanisms are increasingly desirable, particularly in prime locations like Penrose.
“The region’s ongoing expansion and corresponding commercial activity has kept vacancy rates relatively low in well-connected areas, adding to the scarcity value of this asset.”
The zoned Business – Heavy Industry categorisation under the Auckland Unitary Plan offers flexibility for various industrial activities.
Bayleys Investment Products manager Mike Houlker says this is a key highlight. “Despite recent volatility and a year marked by low leasing activity, the subject property has demonstrated its value as the demand for industrial accommodation in strategic locations remains robust.
“The location enhances operational efficiency and positions the property as a valuable asset at a time when investor demand is kicking into gear. With a location between key industrial hubs at Onehunga and Mount Wellington, it is an ideal choice for investors keyed into growing regional demand dynamics.
“The property stands out with its balance of near-term revenue and long-term capital growth potential. A strategic location and secure tenancy add further appeal, with its 10-year lease, annual rental increases, and positioning within a sought-after industrial hub well-placed to provide solid returns for years to come.”
- Supplied by Bayleys
