A super-sized mixed-use landholding in the high-growth suburb of Otahuhu will appeal to developers, owner-occupiers and add-value investors who have the opportunity to secure a prime location for their next major project.
6-8 Fort Richard Road and 581 Great South Road in Otahuhu
are being presented to market as a combined offering and have a total net lettable area of 11,857sq m on 22,825sq m of land.
The properties include 10 freehold titles and offer dual access from Fort Richard Road and Great South Road.
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The existing buildings are currently tenanted but due to short-term leases and redevelopment clauses, the buildings could be vacant as early as January 2023.
The tenancies provide a combined net annual rental income of $1,438,926 plus GST.
Colliers brokers Greg Watson, Gareth Fraser, Greg Goldfinch, and Paul Higgins have been exclusively appointed to market the properties for sale by deadline private treaty closing at 4pm on Thursday 11 November, unless sold prior.
6-8 Fort Richard Road comprises 22,123sq m of land with a 11,653sq m warehouse that is leased by the anchor tenant who began an 18-month lease on 10 July 2021 with a final expiry of 9 January 2023.
581 Great South Road is positioned on the remaining 693sq m of land. This site is located adjacent to 6-8 Fort Richard Road, providing potential for dual access or drive-through capability for any future change of use or redevelopment.
The existing retail building has an associated residential flat also occupied by tenants The Hangi Shop Limited. Their six-year lease has a final expiry of 30 September 2028, but a redevelopment clause is in place that includes a six-month notice period.
Watson, industrial sales broker at Colliers, says Otahuhu
is an established suburb that is experiencing rapid growth in the industrial and residential sectors.
“The potential on offer here cannot be overstated and with the flexible lease terms in place, the new owner will have ample lead-in time to decide their next move on a property that will provide holding income,” Watson says.
“The surrounding suburbs of Mangere, Papatoetoe and Manukau have undergone huge intensification recently and that trend will only continue.”
Fraser, director of investment sales at Colliers, says there are virtually no other opportunities in South Auckland to buy a site of this scale that is zoned Business – Mixed Use Zone.
“Demand for low-cost housing, terraced housing, and townhouses is at an all-time high and there has been huge interest from buyers around land that can be developed for those purposes,” Fraser says.
“The recently released National Policy Statement on Urban Development could lead to an even higher density outcome for the site, given its proximity to transport nodes.”
Goldfinch, national director of industrial at Colliers, says this offering will appeal to a range of prospective purchasers.
“In its current configuration, the site presents a multitude of potential uses, including e-commerce, warehousing, distribution, storage or bulk retail,” Goldfinch says.
“But the ultimate redevelopment may incorporate a number of those options alongside a residential or retirement development.
"The flexible zoning of this site will provide the new owner with the chance to create something that will reshape the area.”
Higgins, director of industrial at Colliers, says the site offers connectivity to a range of amenities such as supermarkets, parks, and schools, while Manukau’s CBD is a short drive away.
“The site has excellent proximity to major transport linkages, including the Southern Motorway and State Highway 20,” Higgins says.
“Auckland’s CBD is only 15 minutes away, while Auckland Airport can be reached in 16 minutes. The Otahuhu
train is only 1.8km away, adding another layer of convenience.”
- Article supplied by Colliers
