Onehunga Trade Depot for sale and leaseback

The Trade Depot property at 306 Neilson St, Onehunga, is indicated by a blue border. Photo / Supplied

Online home improvement retailer Trade Depot is to sell its flagship warehouse and showroom in Auckland's sought-after Onehunga industrial precinct.

Colliers International is marketing the 9781sq m freehold property at 306 Neilson St — featured in the latest Colliers Portfolio — for sale and leaseback.

Offers by way of deadline private treaty close at 4pm on Tuesday May 29, unless sold prior.

Colliers' Andrew Hooper sees a chance to acquire a top-tier industrial investment with excellent fundamentals.

"This superb offering is signed to a new 10-year, triple net lease to fast-growing e-commerce retailer Trade Depot," says Hooper.

"The lease earns $882,773.56 plus GST in net annual rent, with fixed annual rental increases of 2 per cent. Being zoned Heavy Industry, the property is well located on busy Neilson Street, in the heart of the established Onehunga industrial precinct. And having been built in 2001, the 6302sq m warehouse, showroom and office is relatively modern and in very tidy condition."

Hooper's colleague Hamish West says the Neilson St property is situated on a rear site, accessed by a shared right of way servicing three lots.

"The main 5355sq m warehouse, split into five bays, is Trade Depot's distribution facility," West says.

"The warehouse has multiple roller doors and an 8.4m stud height at the knee, rising to 9.2m at the apex."

West says the 775sq m office area is at the front of the property over two levels.

"The ground floor offices are open plan, with toilets and a cafeteria located at the rear. The first-floor offices are both open plan and partitioned, with a boardroom area and office suites."

Colliers' Paul Jarvie says investors can have confidence in the strong tenant covenant.

"Trade Depot has an established track record in the home improvement sector, with the company's principals importing since 1990, selling online since 2007 and establishing Trade Depot in 2009.

"By 2013, Trade Depot had grown into a specialist online retailer with its own showroom. Since then, the company has expanded rapidly and in 2017 moved its showroom, office and warehouse into its Neilson Street premises. Trade Depot is now well placed to maintain strong growth as online shopping continues to outpace traditional retail."

Hooper considers the property for sale is very well located.

"Neilson Street is one of New Zealand's busiest roads, with average daily traffic of 30,000 vehicles, including more than 4000 freight vehicles a day," he says.

Hooper says Onehunga offers good access to both Auckland Airport and the CBD via the nearby Southwestern Motorway (SH20), which links to SH1 at Manukau and SH16 via Waterview Tunnel.

"It's also close to the nearby labour pools of Penrose, Mount Wellington, Ellerslie and Greenlane."