Favona site is ripe to redevelop

The 6.98ha landholding at 42, 60 and 70 Favona Rd, is on three titles and identified by a blue border. Photo / Supplied

A large tenanted Mangere landholding, for sale and earning $1.16m in annual holding income, is a hot prospect for redevelopment.

That's the message from brokers selling the 6.98ha industrial property, at 42, 60 and 70 Favona Rd, where three freehold titles are available individually or together.

Colliers International industrial specialists Greg Goldfinch, Andrew Hooper, Hamish West and Greg Watson are selling the property by deadline treaty, with offers closing 2pm on November 30.

"This property is just two minutes from the motorway interchange," says Goldfinch. "It's centrally-positioned among the Onehunga, Otahuhu and Mangere Bridge industrial areas; close to transport links and a short drive from the SH20 motorway interchange. The drive to Auckland Airport is 12 minutes, while western and northern suburbs are easily accessed via the Waterview Tunnel, so connectivity to most of Auckland is superb."

Goldfinch says the property is on three leases earning $1,157,280 plus GST in net annual rent.

"With the leases due to expire between 2021 and 2023, this provides ample holding income while the new owner makes plans to redevelop this substantial site."

Hooper says Status Produce, a 100 per cent owned subsidiary of Turners & Growers occupies the largest two titles, at 42 and 60 Favona. The smaller title, at No 70, is leased by concrete supplier eConcrete.

Hooper adds the combined landholding benefits from five access points to Favona Rd.

"Status Produce's tenancy comprises an extensive area of glasshouses along with a plant room, warehouse, coolstore, workshops and associated offices and amenities," he says.

The company is on two leases paying a combined $1,108,780 in net annual rent. Termination of the leases is available with 12 months' notice in favour of the tenant.

Fixed annual rent increases of 2.5 per cent provide growth on the holding income until final lease expiry in June 2023.

The 10,085sq m property at 42 Favona Rd comprises a mostly level site with a well-presented 3778sq m warehouse, office and coolstore building. Hooper says the main warehouse has a medium stud height of 6.5m at the knee, rising to 8m at the apex.

"A more recently-built extension has low to medium stud warehouse space, along with a mezzanine storage and amenity area."

West says the coolstore has a medium stud height of 5.6m at the knee rising to 6.65m at the apex.

"It is split into two bays, with access via an automatic roller door at the front or internally from the main warehouse via a single roller door. The office block, on a single level at the front of the site, includes a reception area, partitioned offices, some open plan accommodation and staff amenities."

The site has 102sq m of road frontage with two entry and exit points; sealed car parking and plenty of room for container dropping.

The 58,228sq m property at 60 Favona Rd is predominantly occupied by two large glasshouses with a combined area of 41,790sq m.

Two low-stud workshops are located between the glasshouses, while a low-medium stud workshop with multiple bays and roller door access is at the front of the western glasshouse.

A large irrigation pond, used by T&G to help grow its produce, is located at the rear of the site. The rest of the site is mostly grassed, as well as a small sealed car park.

The property shares two access points with 42 Favona Rd, while secondary access is via a driveway one property removed to the east.

The 1500sq m property at 70 Favona Rd comprises a level yard with 46m of road frontage and no improvements.

It is currently tenanted by eConcrete Ltd for machinery, equipment and supplies storage.

The company is signed to a two-year lease earning $48,500 plus GST in net annual rent. One market rent review is due upon renewal in October next year, with final expiry in September 2021.