The land and buildings of a super-sized industrial site with three established tenants in Wiri are up for sale, presenting prospective purchasers with an enticing split-risk investment opportunity in one of South Auckland’s most sought-after industrial hubs.
21 Hobill Avenue, Wiri has 15,706sq m of total net lettable area and approximately 5900sq m of yard space on 31,134sq m of land that is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.
The site has a flat contour and drive around access providing convenience for its tenants Fruehauf NZ Ltd, Fletcher Steel Ltd and Nauhria Precast Ltd. The total net annual rental income for the property is $1,719,137.
Hobill Avenue, which runs off the busy Wiri Station Road, enjoys excellent access to major arterial routes, including State Highway 1 and State Highway 20, and benefits from the recent development of the Waterview Tunnel.
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Colliers directors Greg Goldfinch and Shoneet Chand have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 9 December, unless sold prior.
Fruehauf is the road-front tenant and leases a 5775sq m double gable warehouse with a 53sq m warehouse office, a 979sq m single gable warehouse, 770sq m office, 91sq m of amenities, 328sq m of canopy, and two asphalt sealed yards totalling 2834sq m.
They are in the midst of a 12-year lease that expires on 31 July 2027. There are two further rights of renewal for six years each.
Their lease provides $956,697 in net annual rental income and includes annual increases of 2.5 per cent.
Fletcher Steel leases the 4145sq m central warehouse, that is separated from the Fruehauf tenancy by an inter-tenancy wall, which includes a 320sq m office as part of their six-year agreement that ends on 31 July 2022. Fletchers have a 1897sq m yard which has recently been resealed.
There are two further rights of renewal for three years each and their lease provides $442,066 in net annual rental income. There will be a market rent review on renewal.
Nauhria Precast leases the 2733sq m rear warehouse and 512sq m of office space that includes a boardroom, kitchenette, and associated amenities, alongside a 1170sq m yard.
Their current agreement ends on 30 November 2022 with two further rights of renewal for six years each. Their lease provides $320,374 in net annual rental income and includes fixed annual increases of 2.5 per cent.
Goldfinch, national director of industrial at Colliers, says the highly functional property provides a steady rental stream and huge land value.
“This is a highly visible site that offers excellent usability for its occupants given the full drive-around access and high stud warehouses,” Goldfinch says.
“Wiri is a sought-after industrial precinct in Auckland that is home to a number of large-scale industrial operators, including The Warehouse, Frucor, Americold, and Orora to name a few, while the site neighbours are the well-known Bluebird Foods.
“With increased roading infrastructures, including the signalisation of Kerrs Road and Druces Road, the property is well situated in the heart of Wiri and provides a unique opportunity when looking to expedite travel times on the surrounding motorway network.”
Chand, director of investment sales at Colliers, says the property will hold significant appeal to a wide range of purchasers looking to secure a premier industrial asset.
“Buyers will be drawn to the strong tenant covenants on offer and, when appropriate, a review of rental rates could be considered due to the potential under-renting given the extraordinary demand for high-quality industrial sites in South Auckland,” Chand says.
“This property will generate strong interest given the sheer scale of its land and buildings, while being situated in one of Auckland’s most tightly held locations.”
The Business – Heavy Industry Zone provides for industrial activities that may produce objectionable odour, dust, and noise emissions. Air quality emissions standards that are different to the rest of Auckland will often apply. A key attribute of the zone is that it contains sites large enough to accommodate large-scale industrial activities.
- Article supplied by Colliers
