The upcoming sale of three tenanted warehouse/business units offers investors a rare stake in a booming Auckland growth location where industrial development land is all but exhausted.
The trio of fully-leased units sit within a premium gated business park taking shape in Westgate Town Centre amid a chronic shortage of industrial business premises.
Units 1, 3 and 5, at 14 Northside Drive, Westgate, are leased to a home furniture supplier, a beer logistics business, and a leading glass repair company respectively.
Unit 1 spans more than 1,000 square metres, while the other two units each encompass over 700 square metres.
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Each features an attractive mix of modern warehouse, office and showroom accommodation with dedicated parking.
The units for sale are among five completed in stage one of the 16-unit development on Northside Drive.
The other two completed units were sold to investors in 2023.
Units 1, 3 and 5 are now being offered for sale through Craig Smith, Beterly Pan and Stuart Bode of Bayleys Northwest.
They will be sold together or separately by deadline private treaty closing on Thursday 12 March, unless sold prior.
Smith said that with industrial development land now virtually non-existent in the Westgate area, the units represented an investment with genuine scarcity value.
“Seldom is there an opportunity in this regionally important growth hotspot to buy near new, first-class industrial investments with quality tenants on good lease terms and built-in rental growth,” said Smith.
Each of the units for sale incorporates a substantial clear-span warehouse with a seven-metre stud, motorised roller door and canopy, along with showroom and office space and dedicated parking.
-Spanning some 1,072 square metres, with 20 car parks, Unit 1 is leased to Xu Ben Trading Limited, trading as Proferlo Furniture. The current lease, signed in 2023, runs through to 2029 with a further six-year right of renewal. The lease returns a net rental of $311,040 plus outgoings and GST per annum, with built-in 3 percent rent increases in years three to six and a market review on renewal.
-The approximately 714-square-metre Unit 3, with 11 car parks, is leased to beer logistics business Beer Fridge Limited on a current lease that runs through to 2027 with a further five-year right of renewal. The lease generates an annual net rental return of $169,646 plus outgoings and GST plus fitout repayments of $5,833 per month. The lease agreement provides for annual CPI rent reviews, replaced by a market review on renewal.
-Unit 5 spans some 706 square metres, with 11 car parks. It is occupied by Nguyening Limited, trading as windscreen repairer NOVUS Glass. The tenant pays an annual net rent of $190,816 plus outgoings and GST on a current lease that runs through to 2026 with two further four-year rights of renewal. The lease agreement provides for annual CPI rent reviews capped at 5 percent and a market review on renewal.
Pan said the units featured high-quality construction with concrete tilt-slab walls, attractive exterior cladding and full-height glass panelling.
“Each property has allocated parks within a central car park, along with secure and dedicated loading positions. The complex has swipe-operated security gates, and the site dimensions provide for a mix of light to medium sized truck access,” said Pan.
The complex is zoned Business – Light Industry under Auckland’s unitary plan.
This permits activities ranging from manufacturing to logistics, storage, transport and distribution, provided they do not generate objectionable odour, dust or noise.
The development sits on a high-profile site opposite Mitre 10 MEGA and near Costco and Costco Fuel outlets and the 100-plus shops of NorthWest Shopping Centre.
Other big-brand neighbours include Bunnings, PAK’nSAVE, Briscoes and Harvey Norman.
Bode said the Northside Drive development sat within the northwest corridor area identified by city planners as a key focus for urban growth.
The area is undergoing a $15 billion transformation with public amenities, schools and a major transport upgrade, along with major development and expansion in Westgate Town Centre and neighbouring residential areas along Fred Taylor Drive and Redhills in Massey.
“The enormous investment Westgate is attracting from top New Zealand and international businesses speaks volumes about its strategic significance within Auckland.
“The world’s second-largest retailer, Costco, chose this location to build its 16,000-square-metre flagship New Zealand store, which has attracted large customer volumes since opening 18 months ago.
"Microsoft and DCI have built large-scale data centres on Kakano Road, while site works are underway on a large Westgate site bought by Amazon Web Services,” said Bode.
The proposed connection of Northside Drive to the Northwestern Motorway lies some 200 metres from the units for sale, with existing motorway connections enabling easy access to Auckland’s CBD, North Shore and airport.
- Supplied by Bayleys
