A big Onehunga industrial property, bordering Manukau Harbour and producing almost $3 million in annual income, is for sale on behalf of Ports of Auckland Limited.
The property has come to the market at a time when available large industrial sites in Auckland are virtually non-existent, says Andrew Hooper of Colliers International. Hooper and his industrial team colleagues, Ash Vincent and Greg Goldfinch, are seeking offers on 39-59 Miami Parade with a deadline for receipt closing at 4pm on Wednesday May 22 - unless sold earlier.
The 18.8ha gross site, across three individual titles, encompasses 16.2ha of income-producing land leased to four established tenants on five leases; and earns a combined $2,914,215 plus GST in net annual rent.
Hooper says the property is fully tenanted with investment-grade leases to established companies EnviroWaste, Downer, Auckland Heliport and Car Haulaways.
"In addition, limited site improvements and the zoning allow for numerous redevelopment options in the long term," he says.
Hooper says the sale represents an opportunity to acquire a large site with minimal improvements; that has excellent redevelopment potential; and which has a sought-after Heavy Industrial zoning.
"Record low vacancy rates and limited land supply have contributed to an enormous demand for industrial property, especially large sites that can be readily developed," he says.
"Backing onto the Manukau Harbour, this property is strategically located on the border of the established industrial precincts of Onehunga and Penrose which form Auckland's key manufacturing and distribution hub due to their central position and easy access to key transport infrastructure."
Goldfinch says the site has long been owned by Ports of Auckland Limited but is now surplus to requirements.
"The Auckland Council-owned company has been divesting assets around the port of Onehunga, which is unsuitable for large, modern ships due to Manukau Harbour's shallow entrance.
"The wharf was purchased last year by Auckland Council, which plans to transform the land into a mixed-use precinct as part of the wider urban regeneration of Onehunga.
"The area's transformation will have an immensely positive impact on property prices in the area, making Miami Parade an astute long-term investment," Goldfinch predicts.
He says the leases are below market rental rates, which provides an opportunity to grow revenue at review time. "All tenants are well established businesses that have a strategic advantage being located at Miami Parade.
"The major tenant, Car Haulaways, uses the site as car storage for well-known vehicle brands. Auckland Heliport has recently redeveloped its site to an award-winning standard and provides the new base for the Auckland Police Eagle helicopter service. Downer and EnviroWaste have processing facilities on the site that complement other aspects of their substantial businesses."
Vincent says the property is situated at the western end of Miami Parade, a cul-de-sac which can be accessed directly off Neilson St or from feeder streets Angle St and Pukemiro St. "The property's immediate surroundings are dominated by industrial buildings of mixed age and size. Directly to the north of the site are the Metrobox and Metroport developments."
Vincent says the property benefits from Auckland's heaviest industrial zoning, allowing for a wide range of operations. "A key requirement of the Heavy Industry zone is that it contains sites large enough to accommodate large-scale industrial activities."
Tenant Car Haulaways occupies a substantial 114,745sq m across two leases, representing 71 per cent of the property's total lettable area. The leases cover 66,470sq m to the southeast of the site and a further 48,275sq m to the northwest.
Both leases are for seven-year terms with three rights of renewal of seven years each, extending the final expiry to September 2044. The leases earn $2,036,724.25 plus GST in net annual contract rent, with market reviews on renewal.
Car Haulaways is part of the Car Distribution Group (CDG), which was established in 1962. It operates a fleet of 120 car transporters and 24ha of storage facilities for about 10,000 vehicles. Its services include car storage, detailing, intermodal vehicle distribution and computer systems, with a network covering Auckland, Waikato, Wellington, Picton, Nelson, and Christchurch.
Auckland Heliport, operated by Advanced Flight, occupies 10,134sq m at the centre of the site on the southern waterfront, representing 6 per cent of the total lettable area. The seven-year lease earns $214,500 plus GST in net annual contract rent, with three rights of renewal of seven years each extending the final expiry date to July 2044. Rent reviews are to market on renewal.
Advanced Flight was established in 1998 and provides Auckland-based helicopter management and charter services. It is one of New Zealand's largest helicopter charter services with a fleet of nine luxury single and twin-engined, high-performance helicopters dedicated to passenger transport.
Auckland Heliport was purpose-built as a new base, close to both Auckland International Airport and the city centre, in 2010. The premises was recognised with a 2011 New Zealand Architecture Award from the New Zealand Institute of Architects.
Downer NZ occupies 31,348sq m at the southwest of the site, between the Auckland Heliport and EnviroWaste, representing 19 per cent of the total lettable area.
It pays $513,232 plus GST in net annual contract rent, on a seven-year lease with a seven-year right of renewal extending the final expiry date to September 2032. Rent reviews are indexed to inflation annually and to market on renewal.
Downer Group is an infrastructure and integrated services company that is listed on the Australian and New Zealand stock exchanges. It employs more than 53,000 people across more than 300 sites, primarily in Australia and New Zealand but also in the Asia-Pacific region, South America and Southern Africa.
EnviroWaste Services Limited occupies 5760sq m at the southwestern border of the site, representing 4 per cent of the total lettable area. It is signed to a 20-year lease, expiring in February 2024, with no rights of renewal or rent reviews remaining. The lease generates $149,760 plus GST in net annual contract rent.
EnviroWaste was established in 1995 and was acquired by global infrastructure company CK Infrastructure Holdings in 2013. Its integrated national network provides services related to waste collection, waste minimisation, resource recovery, recycling, composting, disposal, environmental remediation and gas-to-energy processing.
Onehunga is close to the State Highway 1 Southern Motorway which is only a five-minute drive away to the east; while the SH20 Southwestern Motorway is a five-minute drive to the west - providing easy access to Auckland International Airport and the Waterview Connection, which connects to the Auckland CBD and the northwestern suburbs.
The suburb's accessibility makes it an 'industrial hot spot' for tenants, owner-occupiers and investors. It is home to some of the world's best-known brands in logistics and manufacturing; and has benefited from significant investment by major property companies including Goodman, Stride, Southpark and JKGL.