Two big Frankton industrial blocks

The blocks of industrial land at 16 and 16A Wickham St, Hamilton, are indicated by red borders. Photo / Supplied

Two enormous blocks of industrially-used land on the urban fringe of Hamilton city are for sale simultaneously.

The properties at 16 and 16 A Wickham St are in the industrial district of Frankton and have a combined area of more than 8ha.

The property at 16 Wickham St has three tenancies, two generating combined rent of $176,648 per annum, while the third is an owner/occupier entity delivering an assessed rental income of $276,352. The property has around 1402sq m of buildings scattered around its perimeter — ranging from shared office amenities in a relocated residential dwelling, through to an 865sq m five-year-old, 6m high, steel beam, open-plan warehouse with three roller door entry points. Tenants include event hosting equipment supplier X-Site Group on a lease running to 2020, with one further five-year right of renewal; and garden landscaping firm Complete Landscape Supplies, also on a lease expiring in 2020 with one further five-year right of renewal.

The two blocks at 16A Wickham St are occupied by 16 small tenants in the roading, infrastructure, transport, freight forwarding and construction sectors — generating combined annual net income of $243,914. Seven of the tenancies are on month-to-month occupation contracts.

The industrial blocks are immediately beside the designated Kahikatea Drive entry point on to the NZ Transport's planned Southern Links project. This will increase connectivity between Tamahere and Hamilton's western urban boundary, linking up with both SH1 and SH23. The $100m Southern Links are designed to increase travelling efficiency and decrease congestion for all road users — as well as making it easier for heavy goods and freight vehicles to access Hamilton city's western fringe. Sitting side-by-side, the two freehold sections form the demarcation belt delineating central Hamilton on one side, and rural pasture land on the other. Both landholdings are classified rural 1A under the Waipa District Council zoning plan.

The property at 16 Wickham St is a square parcel of land facing directly onto the road, while 16A Wickham St branches off the end of a right-of way running from the road and sitting directly behind 16 Wickham St.

The blocks feature in Bayleys' latest Total Property portfolio magazine and are being marketed for sale by Alex ten Hove and Mike Swanson of Bayleys Hamilton with tenders closing at 4pm on December 7. The blocks can either be tendered for individually or as a combined parcel.

Ten Hove says the landholdings are owned by two different vendors, although they do have some common shareholdings.

"It's one of the biggest blocks of industrial land this close to the heart of Hamilton to come onto the market this decade," ten Hove says.

"The boundary on to Wickham St is the actual line which separates Hamilton City Council properties from Waipa District Council land.

"Faced with future zoning changes from Rural to Industrial use; and their strategic location at the gateway to a proposed new motorway link, the potential for future development on these sections is virtually a blank canvas.

"The L-shaped format of these flat topography sites, sitting side-by-side, could, subject to council consents, also sustain the creation of multiple large warehousing units in a collegial hub-style format or a secure freight depot.

"Alternatively, the two sites could be redeveloped into an intensive strata-titled industrial enclave of tilt-slab concrete units in the 200m-400m size range.

"Whichever option, the true value in these properties lies in combining the individual sections and making a more efficient use of the resulting 'super block'," ten Hove says.