A near-new distribution centre facility in Wiri is for sale, representing one of the first premium grade industrial property investment opportunities to hit the Auckland market in 2023.
The 7,318sq m prime industrial asset, at 101 McLaughlins Road is leased to Plumbing World Ltd, a wholly owned subsidiary of NZPM Group Ltd (NZPM Co-operative) which operates the Plumbing World chain nationally.
It is being marketed by CBRE capital markets, industrial & logistics managing director Bruce Catley and director James Appleby for sale by deadline private treaty, closing on Tuesday 21 March 2023 at 4pm.
The sale presents an excellent opportunity for investors to secure an expertly designed, solidly constructed and highly efficient distribution centre facility to add to their family trust holdings or investment portfolios, says Catley.
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“This asset will be considered a trophy industrial investment, situated in the highly sought-after location of Wiri. The tenant covenant offered by NZPM Co-operative is exceptional, with Plumbing World a market leader operating in a highly resilient industry.
"Ongoing residential and commercial construction activity around the country means demand for plumbing supplies is consistently high.”
NZPM Co-operative is a limited liability co-operative company owned by its customer shareholders. The chain, which is the largest 100% New Zealand-owned plumbing merchant in the country, has over 50 branches nationwide and also incorporates Metrix, a leading importer and retailer of European bathroomware. NZPM Co-operative has around 600 employees.
The 10-year lease at 101 McLaughlins Road generates net annual contract rental of $919,320 (as at June 1 2023). Fixed annual rent growth of 2% is built into the lease, along with capped market rent reviews every five years.
Plumbing World has the right to renew its initial lease term for two further five-year terms, providing a potential final expiry date of May 31 2039.
The facility was designed and built for Plumbing World by Euroclass in 2019, to 100% of new building standard.
It features a 5,532sq m high stud, clear span warehouse; 344sq m of office space; 1,441sq m of canopy area and 27 car parks on a 9,605sq m dual frontage site, says Appleby.
“This contemporary facility has a sought-after low office ratio, with extensive glazed frontages on the corporate-grade office area creating an attractive working environment for the company’s office-based team. The warehouse is highly functional and offers future-proofed flexibility for racking that could be easily adapted to suit other occupiers.”
The site’s dual street frontages provide superb drive-through capability, Catley says.
“The complex includes a large, canopied breezeway drive-through loading and unloading area, designed to take full advantage of the road-to-road location situated between McLaughlins Road and Stonehill Drive.
"This provides efficient, covered, inwards and outwards goods capability straight through the site, with no need for large truck manoeuvring areas.”
The property is offered to the market at a time when Auckland industrial occupancy trends remain exceptionally strong, with vacancy at record lows and rents rising, says Appleby.
“Despite the current challenging environment, there remains strong appetite from the investment community for industrial and related assets – potentially over any other asset class.
"Investment capital is still pursuing opportunities and prime industrial remains probably the most highly sought after asset type in the Auckland market. Buyers should also note that this is an opportunity to acquire a premium industrial asset at a significant discount to replacement cost.”
The light industry-zoned site, within the highly-regarded Stonehill Business Park, is ideally located minutes from Auckland International Airport, Wiri Inland Port, the Southwestern Motorway and State Highway One, Catley says.
“Wiri is well established as a premium location for logistics and distribution-based occupiers and is set to only get better with upcoming local roading network improvements, which will provide an alternative connection to the airport for Wiri property occupiers.”
- Article supplied by CBRE
