Two small freehold factories on separate titles in the heart of industrial Onehunga are being sold together with a leaseback from the existing owners.
Located at 10 and 12 Patrick St, the factories are used for specialist die cutting and printing and have been in the ownership of two separate businesses for 18 years.
The two businesses pay rent to a separate investment company but the properties are being sold as one parcel through Savills' investment broker Bruce Webb and joint managing director Paddy Calleson by private treaty closing on June 18.
Although the two properties are on separate titles, access has been cut between both through the firewall but this can be reinstated if an investor wanted to lease the properties separately or an owner-occupier wished to establish different businesses.
"The properties are well maintained and the owners are offering a two year lease at a yearly rent of $105,000 across both and two two-year rights of renewal," says Webb.
Both properties are generic warehouses with offices at the front. At 10 Patrick St the 654sq m site has a 1970s building, with concrete block perimeter walls, steel portal roof framing and a concrete floor. "The roof has recently been renewed with skylights and the concrete floor has an above average finish," says Webb.
Offices are to the right hand side of the property while there is drive-in access and car parking on both sides of the drive.
At 12 Patrick St the 1980s built property sits on a 655sq m site. Webb says this building is similar to its neighbour and has also been recently reroofed. There are offices to the right hand side of the building on the first floor with parking underneath and to the side of the driveway. This property also has cart dock access.
"Both properties are in excellent condition," says Webb.
"The perimeter walls have been painted internally and externally with sealant to deter osmosis and moisture migration through them and the floors are dust-proofed."
Webb says the properties sit in a desirable location that was developed in the 1970s and 1980s and have a Business Six zoning, regarded as advantageous for industrial and manufacturing purposes.
"There are a wide range of building sizes and uses in the immediate area which is in the golden triangle of the South Auckland industrial area."
"These properties will appeal to a wide range of buyers because of their size, value and location. The value of the land and buildings more than compensates for the short-term lease risk," he says.
Webb says the constrained supply of land in the central industrial area of Onehunga, Penrose and Mt Wellington means there are few opportunities to buy established premises.
"With low vacancy rates in the central industrial area, we are seeing a notable increase in owner-occupiers looking to buy and develop sites to suit their own requirements," says Webb. "Businesses are also increasingly looking to buy their own property to operate from, given the low lending rates."
Manufacturing is one of the industrial sector's biggest employers and much of it is centred on South Auckland. "Confidence among property investors in the industrial sector is climbing steadily to make it the most favoured segment to invest in," says Webb.
Onehunga is one of Auckland's most centrally-located industrial areas, with investors, owner-occupiers and developers attracted to the area's closeness to key arterial routes giving easy access to both the port and airport.