A fully refurbished office and warehouse building in the tightly held Rosebank Peninsula industrial precinct in Avondale offers buyers the opportunity to acquire a prime passive investment with a strong tenant covenant.
14-18 Honan Place, Avondale offers 2,053sq m of total net lettable area on a regular-shaped 3,143sq m freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
The property is home to longstanding tenant, the G3 Group, who have recently committed to a new six-year lease with one further right of renewal for six years leading to a final expiry of 30 September 2034.
Their lease agreement provides $320,000 plus GST in net annual rental income and includes annual increases and three-yearly market rent reviews.
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The highly functional property has multiple offices, two separate warehouse spaces, a basement, and loading dock. There are also 30 on-site car parks and room for multiple containers.
The Rosebank Peninsula is one of Auckland’s most sought-after industrial precincts given its favourable proximity to the CBD and Ports of Auckland.
The nearby motorway interchanges provide convenient access to State Highway 16, while the Waterview Tunnel offers connectivity to South Auckland and the airport.
Colliers Directors Matt Prentice, Jimmy O’Brien, Shoneet Chand, and Dhiru Patel have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Tuesday 11 October, unless sold prior.
The G3 Group operates three principal business divisions, including document management and data management, business mail operations, and mailhouse and mail fulfilment services.
They have achieved considerable business growth during the past decade and have ambitious future plans.
Prentice, Director of Industrial Sales and Leasing at Colliers, says the property shapes as a high-quality purchasing opportunity, which is supported by a strong tenant covenant.
“The existing tenant is a longstanding occupant that recently began a new long-term lease, which shows their commitment to this exceptional site,” Prentice says.
“The property provides a steady rental stream and the built-in rental growth through future annual increases and market rent reviews will be highly appealing for buyers.”
The 2,053sq m building consists of 534sq m of office facilities, 1,295sq m of warehouse area, and 112sq m of amenities space. There is also a small basement measuring 57sq m and a 55sq m loading dock.
O’Brien, Director at Colliers Auckland North, says the building presents in magnificent order following the recent refurbishments.
“The property has a new roof and front facade, while there have been a range of high-quality upgrades made to the office space, which will enhance the usability and functionality for the occupants,” O’Brien says.
“Originally designed for two tenancies, the large-scale site also offers excellent road frontage.”
Chand, Director of Investment Sales at Colliers, says the lack of available land supply in West Auckland means industrial property is tightly held in this high-profile location.
“It’s rare to see investment opportunities such as this one presented to the open market,” Chand says.
“Auckland’s CBD can be reached in approximately 15 to 20 minutes from Rosebank Peninsula in non-peak hours and nearby suburbs continue to experience considerable population growth.”
Patel, Associate Director of Industrial at Colliers, says the Rosebank industrial precinct is home to a range of well-known brands who have occupied the general vicinity for a number of years.
“Household names such as Allegion, Rheem, Blum, Bunnings Trade, USL, Autex, Methven, and Barkers are all based near the subject property,” Patel says.
“When examining all of the key factors, this offering shapes as an outstanding bottom drawer investment and we encourage all interested parties to contact us immediately.”
- Article supplied by Colliers
