Five strata-titled industrial premises, occupied by national automotive industry tenants at 1-5 Saturn Place in North Harbour, Auckland, are being offered for sale individually or as a package for the first time since they were constructed in 1999.
Mike Ryan and Matt Prentice, of Colliers International, are marketing the properties which will be auctioned at 11am on May 17 at the agency's office at 151 Queen St unless they are sold in one parcel prior to the auction date.
Colliers national auction manager John Bowring says that with net annual rentals of between $35,000 and $118,163, the properties will suit a variety of purchasers from first-time investors through to high net worth buyers.
"Their established national tenants and built-in rental growth will ensure that these properties will make an ideal fit in any investment portfolio," he says.
"Beaurepaires, Midas, Avis, VTNZ and Kinetic Visual Communications occupy the immaculately presented buildings, which offer road-front exposure to the Upper Harbour Highway and Saturn Place."
Prentice says the strong covenants provided by the big-name tenants, combined with the rental growth on offer, make the properties "very sound bottom-drawer investments". Beaurepaires occupies the largest title, with 673sq m of floor area, and pays $118,163 in net rent annually.
Two tenancies in the 602sq m Avis building pay a total of $89,000 net a year, while Midas contributes $57,500 net a year on 286sq m. Kinetic Visual Communications, a printer and marketing agency, occupies 256sq m and pays $35,000 in net annual rent. VTNZ occupies a purpose-built 207sq m property which includes dedicated lanes and generates $77,700 a year in net rent.
"The property benefits from low site coverage, which allows ample space for vehicle movements, a crucial requirement for the effective operation of the tenants' businesses," Prentice says.
Three of the units are built against the Upper Harbour Highway boundary, with another against the western boundary and the fifth unit (VTNZ) occupying a standalone position in the front corner of the yard. "This configuration allows for maximum exposure and signage opportunities from the external boundaries as well as providing good access in and around the site," says Prentice.
The automotive centre serves the North Harbour business precinct as well as benefiting from easy access to the wider North Shore and West Auckland via motorway connections.
"This is the only purpose-built automotive hub in the North Harbour industrial estate.
Since its completion, it has worked really well for the businesses which occupy it," says Ryan. "A development like this couldn't be replicated on the North Shore due to the shortage of available land.
"This is a tightly held and highly sought-after location, which traditionally had low vacancy rates."
The North Harbour business district is one of the fastest growing commercial areas in Auckland.
Growth in the area has been significant during the past 10 years, Ryan says.
It will continue to be an important employment hub for the foreseeable future.
"North Harbour is home to some 1300 businesses and commercial organisations, which together employ more than 13,000 people."By Colin Taylor Email Colin