The land and buildings of an industrial property in the tightly held location of St Johns in Auckland are being presented to the market for sale, offering buyers the opportunity to acquire an asset with an established tenant on a long-term lease.
Located at 25-27 Hannigan Drive, the property has 2,363sq m of total net lettable area on a 5,367sq m freehold site.
Currently utilised as a food processing facility, the property has nearly 70m of road frontage and is occupied by The Produce Company Limited.
Last year, the property underwent a major upgrade, with a comprehensive investment in plant and machinery to incorporate the latest technology. This modernisation has substantially reduced operational costs and futureproofed the facility for years to come.
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The Produce Company played an integral role in the recent upgrades and their existing 10-year lease began in January 2024. There is one further right of renewal for five years leading to a final expiry of 31 December 2039.
The property, which has an expansive yard, is zoned Business Light Industry Zone under the Auckland Unitary Plan.
Colliers Brokers Rory Donovan, Ben Cockram, and James Dickey have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 10 April, unless sold prior.
The main southern building was constructed first and the supplementary tilt slab warehouse was later added, offering a high stud warehouse space. The buildings comprise of chillers, freezers, processing areas, and dry storage, accompanied by office spaces and amenities.
Donovan, Industrial Sales Broker at Colliers, says this is a highly appealing purchasing opportunity that is underpinned by a strong tenant covenant.
"The tenant's involvement in last year's upgrades further strengthens their commitment to this property and the fit-out serves their operations incredibly well," Donovan says.
"The built-in future rental growth will grab the attention of astute purchasers looking for an investment that generates a steady rental stream."
Cockram, Director of Industrial at Colliers, says the St Johns industrial precinct has very little vacant space and properties such as this one rarely make it to the open market.
"Hannigan Drive is home to several of New Zealand's leading food industry brands, including Brinks Chicken, Bidfood, and ABE s Bagels, making this location an ideal hub for food processing and production," Cockram says.
"The property is strategically located 5km from the State Highway 1 on-ramp, close to Sylvia Park and Lunn Avenue, and is surrounded by a number of high-profile businesses, including Bunnings, Woolworths, Rebel Sport, Harvey Norman, and more."
Dickey, Associate Director of Industrial at Colliers, says buyers with a long-term view may want to explore expansion opportunities to unlock further value.
"The existing yard space measures more than 1,500sq m and while it currently offers convenience for parking and vehicle movements, there is scope for future development to intensify the usage of the site," Dickey says. "This offers significant value to the property."
- Supplied by Colliers
