With industrial vacancy rates at sub-1-percent in south Auckland precincts, agents marketing a premium, fully-leased A-grade industrial warehousing/office complex in Wiri expect the investment market to recognise and value the property’s underlying fundamentals.
Strategically located in the newly-established Basalt Business Park, the freehold property at 3 Matukutururu Road has a long-term lease to leading freight logistics provider StraitNZ Freight Forwarding Limited.
The property was developed by established Auckland developer Euroclass, which specialises in industrial design and build, and responsible for the Stonehill Business Park estate in Wiri and numerous other large scale industrial projects in the region.
It will be sold by tender closing 4pm, Thursday 6th April, unless sold prior, via Scott Campbell, Sunil Bhana, Nick Bayley, and Tom Davison of Bayleys South Auckland’s specialist industrial team.
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Campbell said the industrial sector continues to perform exceptionally well, largely on the back of ecommerce and its related distribution and logistics functions, and remains a desirable asset class as evidenced by returns and sustained occupier demand.
“This is the first superior quality offering in the open market for quite some time and it will have definite appeal for high net worth individuals or institutional investors seeking return on investment that outpaces other asset classes,” he said.
“Income is bolstering total returns in the industrial market as confirmed by the latest MSCI data, and this is signalled to strengthen further.
“This Wiri property has compelling credentials that meet all the sought-after investor thresholds including location, quality build, access to main arterials, and importantly, inherently strong lease terms with assured growth.
“This is fundamentally good real estate.”
Occupying a 13,456sqm site and offering 6,500sqm of floor area, the Business-Heavy Industry-zoned property has an efficient layout, optimal warehouse-office ratios, full drive-around capability, onsite car and truck parking and around 110m of street frontage for profile.
It has A-grade office and amenities over two levels, high stud clear span warehousing with seven roller doors, dual-sided access and a large canopy down the entire eastern side of the warehouse for all-weather devanning and loading of trucks and containers.
Bhana said the tenant covenant soundly underpins the physical asset, with the Auckland freight forwarding branch of nationwide integrated transport entity StraitNZ having a new long-term lease with fixed rental growth and a bank guarantee.
“The 10-year lease with rights of renewal through to January 2042 is currently returning net annual income of $1,346,559.50 plus GST and outgoings, and allows for growth throughout the lease term,” he said.
“With the escalation of activity in the logistics sector and the broad-reaching need for efficient and effective distribution supply chains, this property clearly works well for the current tenant, but a property with this scale has wider future relevance in the market – particularly given the shortage of industrial land.”
Located just minutes from the Cavendish Drive interchange with State Highway 20, providing both north and southbound access, the property is well-positioned for streamlined access to leverage its locational benefits, said Nick Bayley.
“The Wiri industrial precinct is favoured by major players in the market, like NZ Post which recently commenced operation of its new processing centre around 800m from the subject property.
“Transport efficiencies unlocked by the opening of the Waterview Tunnel with State
Highway 20 now directly links to Highway 16 and provides access to West Auckland and Auckland’s CBD, plus the link to State Highway 1 at Manukau, means logistics companies are actively seeking out Wiri opportunities.
“Add in the ease of access to Auckland International Airport via State Highway 20A, and Wiri has cemented its place in Auckland’s wider logistics network.”
-Article supplied by Bayleys
