Onehunga landholding comes with development potential

The 3.4956ha freehold property, at 224 Neilson St, Onehunga, is for sale by deadline private treaty closing November 8 at 12pm.

A large, strategic landholding with a lease in place and excellent future development potential in the Auckland industrial hub of Onehunga is on the market.

A large, strategic landholding with a lease in place and excellent future development potential in the Auckland industrial hub of Onehunga is on the market.

Marketed by Claus Brewer and Bruce Catley of CBRE, the 3.4956ha freehold property, at 224 Neilson St, is for sale by deadline private treaty closing November 8 at 12pm.

Brewer says land of this size, with substantial road frontage and dual vehicle access, is rare in this tightly held industrial precinct.

"This property encompasses Onehunga's reputation as a developing metropolitan precinct. The scale of the site, its central location, and Heavy Industry zoning offers an opportunity to acquire a land holding with high potential for future development and investment. "This is likely to be the last chance a property of this stature is available for purchase for quite some time.

"It has the benefit of an established tenant in place, which provides secure holding income. The location provides easy access to State Highway 20, State Highway 1 and the wider transport network.

"These factors, coupled with the property's proximity to an excellent labour force, are highly desirable and in demand from both logistics and manufacturing occupiers."

The property comprises a 34,956 sq m site over two adjoining lots of land that front Neilson St and Captain Springs Rd, providing dual access. On the Heavy Industry-zoned site sits office, workshop, mill, factory, amenities, and storage facilities totalling about 7000sq m, or 20 per cent site coverage. The property is occupied by Steelpipe Ltd, providing net annual rental income of around $1.3m plus GST, with fixed annual increases of 3 per cent per annum.

The history of Steelpipe Ltd's occupancy dates from when the site was converted from farmland after World War II. Steelpipe Ltd operates spiral welding mills, tape coating, concrete lining and other plant to manufacture all of Auckland's water transmission pipelines, along with pipelines for most other New Zealand cities.

"At present, the property includes facilities suited to Steelpipe's operational needs, particularly for large yard areas for pipe curing," said Catley. "The parcel of land provides scope for future investment to increase the site coverage from the current low coverage of approximately 20 per cent."

The property is zoned Heavy Industry under the Unitary Plan. "A key attribute of the zone is it contains sites suited to accommodate large-scale industrial or logistic activities," said Catley. This zone is close to key freight routes."

Brewer said the property offers excellent access to Auckland airport, Ports of Auckland, Metro Port and Wiri Inland Port, the motorway network, and the CBD.

"This property is superb for an investor looking to develop their reach throughout the North Island."

The popularity of the area is backed by CBRE research, which shows that industrial vacancy in the area sits at 1.1 per cent.