Exterior elevated view of big industrial property at 423 East Tamaki Rd.
Brokers marketing a big industrial property for sale on a large site in a newly developed area of East Tamaki say it presents a rare opportunity to own a quality industrial building in a sought-after location.
The 1.1ha property at 423 East Tamaki Rd is leased to Dexion, a large multinational company, which manufactures storage products such as racking and shelving.
"The property generates annual net rental income of $699,787," says Greg Goldfinch of Colliers International, who is marketing it with colleagues Paul Higgins and Charles Cooper.
It is for sale by deadline private treaty closing at 4pm on August 22 unless it is sold prior.
"With three years left to run on Dexion's lease, the property presents buyers with attractive future possibilities," says Goldfinch.
"This is a large site that readily lends itself to various options. With a five-year right of renewal in place on the lease, there is potential here for the property to serve as a solid, long-term investment holding, or alternatively it would also suit an owner occupier looking to secure its long-term property requirements in the coming years."
Higgins says that with the relatively short lease term remaining, the property offers an excellent opportunity to purchase at a good return.
"Buildings of this size and quality are very much in demand, especially in popular industrial precincts such as East Tamaki. With a solid return on offer for the next three years, we expect this property to be an attractive proposition for purchasers looking to buy well in a great location."
The modern 6747sq m building was constructed about 15 years ago and has been home to Dexion ever since. It provides a high stud warehouse and recently refurbished office space along with canopy areas. A very large yard provides ample space for truck turning and containers.
Higgins says the facility was built to a high standard and the warehouse was then extended. "The office space, which is spread over two levels, would be ideally suited to head office use."
Multiple roller door access to the warehouse, ample car parking and a large street frontage provide further benefits.
Dexion has operations throughout Asia Pacific and the Middle East, manufacturing and marketing a broad range of storage products including warehousing and logistics solutions and filing products.
The company, which is part of ASX-listed GUD Group, employs about 750 people and has manufacturing facilities located in Australia, New Zealand, China and Malaysia.
The company has sub-leased 2000sq m of the warehouse to Storerite Logistics, which specialises in logistics/supply chain needs.
Goldfinch says the property is on Business 5-zoned land in one of Auckland's fastest-growing industrial areas, among top-tier occupiers including Pumpkin Patch and Bridgestone.
"East Tamaki is now a very tightly held market for owner occupiers and investors alike, with quality properties."
Higgins says East Tamaki has seen a substantial volume of new development over the years and has now firmly established itself as a high quality and well recognised industrial address.
As a consequence, in recent years there has been a strong shift in focus with occupiers and investors placing greater emphasis on the area.
"East Tamaki is now one of the most popular industrial locations in Auckland, and further commercial activity growth in the wider area is now under way with the recent opening of The Crossing commercial centre at Highbrook."
Goodman-owned The Crossing is a 24,700sq m mixed use development that, when complete, will include offices, accommodation, restaurants, shops, entertainment facilities and a conference centre situated around an open-air public plaza.
Higgins says East Tamaki is also conveniently located for access to and from the surrounding suburbs including Botany, Pakuranga and Otara, which provide a stable supply of blue and white collar workers.