Big West Auckland industrial property

Zoned for light industry, the property on Keeling Rd has a lettable area of 5156sq m. Photo / Supplied

A large West Auckland industrial property leased to a leading Australasian packaging company offers investors the chance to boost returns from an under-rented asset.

The 9018sq m freehold property at 19-25 Keeling Rd, Henderson, is being marketed for sale by deadline private treaty by Colliers International brokers Andrew Hooper, Matt Prentice and Dwayne Warby. Offers will close on May 24, unless the property is sold earlier.

The property is on a six-year lease to Pact Group, an established packaging manufacturer with operations throughout Australia, New Zealand and Asia.

It pays $425,824 a year in rent, which Hooper says leaves scope for rental increases during the remaining four and a half years on the lease.

"The property is currently under-rented at a rate of about $83 per-square-metre, which is below the market rate of about $90 per sq m," he says.

"While rental increases can't be guaranteed, market trends suggest the property could bring in more than $530,000 a year. This is an excellent opportunity for investors to potentially get even more out of a great asset."

Zoned for light industry under the Unitary Plan, the property has a net lettable area of 5156sq m, comprising 4070.5sq m of warehouse space, 886.3sq m of office and 200sq m of canopy.

Hooper says the property is well located in the established Henderson industrial area.

"It's a short drive from the northwestern motorway, providing easy access to the CBD, ports, and the Waterview Connection, which will soon connect the area directly to South Auckland and the airport."

Prentice says the property is occupied by Pact subsidiary Alto, which specialises in innovative plastic packaging and components for the consumer goods sector and industrial users.

"Alto is a market leader, with clients including Fonterra, Lewis Road Creamery, Countdown, New Zealand Natural and Healtheries," he says.

The Keeling Rd site is home to Alto's Inpact Innovation division, which draws on in-house engineering and design teams to develop cutting edge products.

Prentice says the owners have invested heavily in upgrading the buildings at Keeling Rd. "They've recently replaced the roofing on the 2032.9sq m front warehouse, while the 1998.3sq m rear warehouse's roof is due to be replaced at their expense."

Warby says the property is dominated by a large, elongated factory with offices and amenities fronting Keeling Rd.

"A driveway on the eastern side provides access to the site, running parallel to the factory. A large rear yard at the back can be used for container dropping and car parking."

Access to the factory is via five roller doors along the driveway, Warby says.

"The warehouse provides excellent manufacturing space and a good level of natural light throughout." The offices are split over two levels, with access from the Keeling Rd frontage.

"It's only 10-15 minutes from the Northwestern Motorway via either Lincoln Rd or Te Atatu Rd, and 25 minutes from the Auckland CBD and Ports of Auckland at off-peak times."