It’s not often that such opportunities arise in sought-after Wiri industrial area
CBRE is offering for sale two industrial properties in Wiri, South Auckland, that are ideal for a variety of owner-occupiers.
"There is very little stock available in Wiri and these two properties represent great opportunities for owner-occupiers to buy at affordable levels," says Paul Steele of CBRE who, with colleague Mark Bramwell, is marketing the Business 6-zoned properties at 5 and 9 McLaughlins Rd and 133 Roscommon Rd for sale through expressions of interest.
"We would say to owner-occupiers that now is an opportune time to get a foot in the market, otherwise the only choice soon will be to lease space or go further south," Bramwell says.
The property at 5 McLaughlins Rd comprises an 8000sq m freehold site with 1765sq m of buildings that include offices, gantry crane and wash bay. As well, there is a 2000sq m concreted yard on a freehold title at 9 McLaughlins Rd.
The sites are available for sale or lease collectively or as separate titles. CBRE is seeking initial expressions of interest by mid-August.
Bramwell says the warehouse has a 7m stud rising to 10m at the apex. "It has great access through nine roller doors, and drive-through access from a secure yard, as well as the rolling gantry crane that runs the length of the warehouse interior. "There is over $400,000 of holding income per annum currently in place providing time for a buyer to plan any redevelopment. It has a very low site density with plenty of room to develop."
Bramwell says a purchaser could possibly secure this property at below replacement value. "It would suit a truck or car centre, auction house or construction or scaffolding companies as a base of operation."
The second industrial property, at 133 Roscommon Rd, comprises a 15,681sq m freehold site fronting the road and only 650m from a State Highway 20 on-off ramp. The site, with 160sq m of offices and a workshop, has four points of access, including a right-of-way stretching the length of the site.
The property is for sale by negotiation with expressions of interest closing on August 14. Steele says it is "priced to sell" with the opportunity for short holding income or vacant possession upon settlement.
"This is a great value-for-money property that would suit construction, landscaping, scaffolding, infrastructure or transport companies," he says.
Under the Manukau City district plan both are Business 6 properties which are scarce and of economic importance because they permit heavy industrial activity.
CBRE's prime property performance index shows that in the last quarter rents have risen strongly in Auckland. The greatest influence came from the industrial sector, where rents are up 7.3 per cent over the past year.
"Prime industrial market yields are still firming due to active investor interest amidst limited investment opportunities," says Steele. "Yields are being pushed down by strong investor appetite and the banks have been keen to lend money so there is a lot of competition now between owner occupiers and investors.
"The market is very tight, with not a lot of stock available for sale or lease, mainly because there has been no new supply and not much speculative activity since 2008.
"There are still pockets of land available in the area, but it is being sucked up. All of this points to now being the moment for owner occupiers to consider their options."
Bramwell says Wiri has become the focus of modern development over recent times, largely as a result of the improved transport links and scarcity of industrial land supply within Auckland. As a result land within the Roscommon Rd and McLaughlins Rd precinct has been rapidly developed.
What's on offer
The properties: Two Wiri industrial sites.
Location: 5 and 9 McLaughlins Rd and 133
Sales method: Expressions of interest.
Deadlines: Mid-August and August 14.
•Business 6 heavy industry zoning.
•Rare sites in area of little stock.
•Ideal for owner-occupiers.
•One has $400,000 a year holding income.
•Area benefits from transport infrastructure projects