A tenanted large property facing the State Highway 20 southwestern motorway in the Manukau-Wiri industrial area and with future redevelopment potential has been placed on the market for sale.
"The property's strong income stream and pricing will make it attractive to investors," says
Mark Bramwell of CBRE who, with colleague Paul Steele, is marketing 9 Diversey Lane for sale by deadline private treaty closing on Thursday May 7 unless it sells beforehand by negotiation.
The large 1.7 hectare property is occupied by Big Tuff Pallets Limited and generates net rental income of $400,000 a year. The company holds a six-year lease dating from September 2012 with two rights of renewal of six years each.
Steel says there is also the possibility of buying an adjoining tenanted investment property at 11 Diversey Lane that is being offered to the market under a sole agency by CBRE.
"The two neighbouring properties on the market together offer a strategic opportunity, with over two and a half hectares in combined land area. This will be a very attractive proposition given the limited land available in South Auckland and the lack of quality investment opportunities on the market."
Steele says the current lease agreement for 9 Diversey Lane provides a possible final expiry in September 2030. "Buyers will view this property as an excellent long-term investment, with a solid income stream and income growth potential through market rent reviews every two years," he says.
"The property's location on a prime site in the popular industrial suburb of Wiri adds to its attraction to investors looking to secure a holding in Wiri for redevelopment or for their own use in the future."
Steele says the high demand for industrial land in South Auckland means values are expected to continue to rise. "Because of this, we expect this site to be of interest to buyers who want a prime piece of land with income and future options. The low density nature of the property means that the purchase price will be strongly backed by the underlying land value," he says.
With only 28 per cent existing site coverage, the property presents many options to add value in the future, Steele says.
"It is big enough to accommodate a modern, state of the art industrial facility with a large warehouse and yard, which would ideally suit many national businesses looking for a high profile and signage exposure to the motorway."
The property encompasses three existing buildings providing a total floor area of circa 4799s q m. One of the buildings is a modern, high stud dry store facility, along with two older-style saw tooth roof manufacturing buildings in which the tenant has recently invested in specialised equipment.
The site, which has a 215m frontage to State Highway 20, is located only 650 metres from the Cavendish Drive motorway on and off-ramps.
Bramwell says Wiri has recently become one of Auckland's fastest-growing commercial zones and is home to several major manufacturing and distribution complexes, says Bramwell.
"Despite its increasing popularity as a business location, Wiri still offers cost benefits over more traditional industrial areas in South Auckland, where land prices are at a premium."
He says Wiri is popular among large industrial owner-occupiers and is home to some of New Zealand's best-known companies.
"Croxley, K-Mart, Bridgestone, Frucor, The Warehouse, Progressive Enterprises, Downer EDI, Cavalier Bremworth and Foodstuffs are just a few of the high-profile companies which have chosen to make Wiri their base."
Steele says the Waterview Connection will make Wiri one of the best locations in Auckland for businesses relying on road transport.
"When the Waterview Connection is finished it will complete the city's western ring route, providing superior transport access for businesses in Wiri and seamless connections to the north, west and south."
Steele says amenities are improving in the Wiri area as more businesses recognise the benefits of being located there. "The retail and food options available to staff working in Wiri are increasing as the local working population grows. For example, there is a new medical centre going into Cavendish Drive.
"The property at 9 Diversey Lane is ideally situated to benefit from this growth and development, which is gathering pace due to Wiri's reputation as a well-located home for industrial occupiers."