Rare chance to think big

The West Auckland industrial property at 114-152 Swanson Rd, Henderson. Photo / Bruce Clarke

One of the biggest quality industrial holdings to come on the market in the Auckland region in recent years is being offered for sale with 5.7 hectares of land in Henderson, West Auckland.

The property comprises 23,800sq m of manufacturing and warehousing space with extensive administration and staff facilities at 114-152 Swanson Rd.

The sale follows a decision by current owner SCA Hygiene Australasia to consolidate its New Zealand paper products manufacturing operations in Te Rapa and Kawerau. However, the company will still maintain a substantial presence in Auckland with a 21,000sq m distribution centre in Onehunga.

The Swanson Rd property is being marketed by Roger Wilson, Geoff Graham and Chris Upright of Bayleys Real Estate by international tender, closing on March 30 and is one of a number of vacant buildings featured in Bayleys' Total Property portfolio.

Wilson said the "giant" property offered a wide range of future use options to an owner-occupier, investor or developer.

"We expect it to attract interest from owner-occupiers and investors looking for opportunities to add value through leasing. Given the substantial land and buildings package located within a flexible planning zone, and its one hectare of vacant land that could be developed at a later stage, we also anticipate good inquiry from developers," said Wilson.

The original factory and warehouse buildings were constructed in the 1970s by Caxton, a paper products company owned by the Spencer family, with a significant enlargement added in 1987. Carter Holt Harvey purchased Caxton's business, including the facility, in 1990 and sold it to SCA Hygiene in 2004.

The original structure provides a stud height of approximately 7.5m, rising to more than 10m at the apex with the later addition having a height of 9.5m to 12.5m. The property has two substations with a 2750kva electricity generation capacity, more than enough to power a 24-hour, seven-days-a-week manufacturing operation.

"The buildings provide a high quality infrastructure and have been fastidiously maintained over the years," said Wilson.

The combination of large interconnected warehouse and manufacturing buildings are currently configured into a 4566sq m inwards goods facility, a production area of 7525sq m and finished goods warehousing of almost 8000sq m. The complex has produced a variety of products over the years including disposable nappies, sheeted wraps, such as burger and lunch wraps, facial tissues and paper serviettes.

The complex's exterior walls are of tilt slab concrete, with load bearing concrete block internal walls providing the benefit of substantial clear-span industrial space within the buildings. The administration facilities comprise a mix of purpose-built structures housing offices, services and staff facilities which include an indoor/outdoor dining area and a commercial kitchen. There is parking for 149 vehicles on the site and an internal circulation area for large vehicles.

The rear of the largely rectangular and level site is bounded by a passenger and freight railway line.

An existing rail siding on the premises has been covered and secured and is currently utilised for storing containers.

However, Graham said it was possible, subject to negotiations with Ontrack, that the siding could be brought back into full operation.

The property neighbours the Waitemata Rugby Club grounds and a large bus depot, with a public reserve to the rear. It is zoned as Working Area within the Human Environments section of the Waitakere Operative District Plan which permits a wide range of commercial and industrial activities.

Graham said the high stud, clear span design of the buildings could be easily and cost-effectively adapted to suit a variety of uses.

He said while the buildings provided a large contiguous manufacturing and warehousing facility, they were separate structures that could be subdivided to create smaller spaces.

"The property has potential to be converted into an industrial park which could attract a number of business operations, particularly if the rail siding was reactivated. However, in addition to its obvious industrial use, the complex could suit anything from an indoor sports facility through to a film studio complex, given the flexible zoning, " said Graham.

Wilson said the property occupied a high-profile site within one of West Auckland's premier commercial precincts, with extensive road frontage of close to 200m to one of the area's main arterial roads. Swanson Rd provides direct access to the centre of Henderson, the commercial and administrative hub of Waitakere City less than one kilometre away, and, via Lincoln Rd, to the regional motorway network.

This puts the property within easy access of Auckland City's CBD and port as well as the North Shore.

The area's connectivity to the greater Auckland region will be enhanced by the completion of the Auckland Western Ring Route.

This will provide an alternative north-south passage to the existing SH1 and will link Manukau City, Waitakere City and North Shore City by motorway-standard roads and in particular improve West Auckland's access to Auckland International airport.

The property is surrounded by intensive residential housing which Wilson said also increased it attractiveness to businesses because of the large blue-collar labour force nearby.

Upright said there was a severe shortage of industrial land for development in Waitakere City, with the council estimating that the "true vacant land" available within the city area to be only around 22ha and much of this in small fragmented sites.

"It's a rarity for a site of this size and in such a good location to come on to the market in West Auckland. Because of the lack of competing developments, we would expect any redevelopment of this property to attract significant interest from potential occupants."