Two neighbouring properties in the rapidly emerging industrial precinct of Riverhead in Auckland are being presented to the market. Buyers have the option of acquiring one or both offerings.
1 Sawmill Road and 5 Timber Place, Riverhead have a total combined landholding of 15,711sq m.
There is a freestanding industrial building located at 1 Sawmill Road that measures approximately 598sq m and that site spans 7,865sq m, while 5 Timber Place is 7,846sq m. Both freehold properties are zoned Business – Light Industry Zone under the Auckland Unitary Plan.
On settlement, new six-month leases will begin at both properties with the existing tenant and there are two further three-month rights of renewal in place, meaning there is potentially 12 months of holding income on offer for the new owner.
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The new leases will provide a total annual rental income of $635,000 plus GST and operating expenses with $375,000 coming from 1 Sawmill Road and the balance coming from 5 Timber Place.
Riverhead is part of the growing north-west of Auckland that is undergoing extensive commercial, industrial, and residential expansion in suburbs such as Westgate and Hobsonville, which are easily reached from the subject properties.
Colliers Directors Ryan de Zwart and Jimmy O’Brien have been exclusively appointed to market the properties for sale via deadline private treaty closing at 4pm on Wednesday 3 April, unless sold prior.
Originally constructed in 2012, the building at 1 Sawmill Road has a stud height of 4.5m to 5.7m and access is available via five full height roller doors.
There is also a basic timber office neighbouring the building on the northern side that has 79sq m of space.
5 Timber Place is used as a yard and across both properties the land is a mixture of sealed yard, part concrete, and bare land.
The surrounding industrial precinct is set to receive an infrastructure boost through the delivery of a wastewater upgrade and transition in water supply from a bore to external provision from Watercare. These upgrades will ensure the future viability of the surrounding area.
De Zwart, Associate Director of Industrial at Colliers, says the opportunity to acquire one or both properties with the holding income in place will be highly appealing to astute buyers and there are no additional land use covenants, outside of council building codes, tied to the location.
“The new owner will have options at their disposal and this location is perfectly suited for a future industrial development that will likely rise in value as industrial property becomes more difficult to acquire at the current pricing levels,” de Zwart says.
“Buying both properties may allow an owner-occupier to enjoy the full offering, while investors could acquire one or both and tenant them accordingly.”
The north-west region of Auckland continues to benefit from an enhanced motorway network, while major industrial and commercial operators have flocked to the likes of Westgate such as international retail giants Costco who opened their first New Zealand store in Westgate in 2022.
Costco and the surrounding Westgate shopping precinct can be reached in approximately 10 minutes from the subject properties.
O’Brien, Director at Colliers Auckland North, says industrial space remains in demand across the Auckland region due to a continued lack of supply in the market.
“Research from Colliers notes the overall vacancy rate for industrial space in Auckland is only 1.8 per cent,” O’Brien says.
“In some areas across the west and northern areas of Auckland the vacancy rates for prime space are lower than this overall figure.
“Sites of this size and contour are seldom seen on the open market and we encourage all interested parties to make contact with us to explore their options for the future.”
- Supplied by Colliers
