Big East Tamaki split-risk industrial

5:00 AM Saturday June 24, 2017 Colin Taylor

An aerial view of the large industrial complex for sale at 33 Birmingham Rd, East Tamaki. Photo / Supplied

A large industrial complex for sale in the sought-after Auckland location of East Tamaki offers a split-risk investment from with future upside.

The 1.89ha freehold property at 33 Birmingham Rd is for sale by deadline private treaty through sole agency Colliers International with offers closing at 4pm on Wednesday, July 12, unless it sells earlier by negotiation.

Andrew Hooper, industrial sales and leasing director for Colliers International, is marketing the property exclusively with colleagues Dwayne Warby and Matt Prentice.

He says it offers solid rental returns of $967,565.89 per annum plus GST.

“This is an outstanding opportunity to acquire a split-risk, multi-tenanted investment in arguably one of Auckland’s most desirable industrial areas,” Hooper says.

“With a net lettable area of 11,453.8sq m plus a 1000sq m large yard, the property also offers plenty of future development potential.”

Hooper says it is extremely rare for Light Industry zoned properties of this size to come onto the open market in such a popular area.

“The property is under-rented and, given the underlying value of the land, there is plenty of scope for capital gains in the future,” he says. “We’re anticipating significant interest from investors, so we’re encouraging interested parties to act fast.”

Warby says the complex occupies a prominent location and has a large street frontage.

“Birmingham Rd is just minutes from the Highbrook Business Park and the State Highway 1 interchanges to both the north and south,” he says.

True Commercial - 33 Birmingham Rd%2c East Tamaki - interior.jpg

The building is dominated by 7517.9sq m of versatile warehouse space. Photo / Supplied

“The location is easily accessible from Botany and other eastern suburbs, as well as the Auckland CBD and wider region via the motorway.”

Warby says the building is dominated by 7517.9sq m of versatile warehouse space.

“It also has 2406.8sq m of fully air-conditioned offices, 222.9sq m of amenities, and a 151sq m common area,” he says.

The rectangular yard leads to a 960sq m enclosed canopy and 81.3sq m cart dock. The property also offers 50sq m of storage and 63.9sq m of other space.

The largest of the property’s three tenants is Malcove Distributors Limited, which occupies 7509.6sq m. Six years remain on Malcove’s lease, which is earning $627,251.89 per annum plus GST.

Warby says the company has specialised in promotional logistics for more than 25 years.

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The industrial complex for sale is identified by blue border. Photo / Supplied

“Malcove deal with the storage and distribution of marketing material, efficient campaign dispatch and smart merchandising for brands,” he says.

Furniture wholesaling company Spring Furniture Limited occupies 1972.6sq m.

Warby says the company, established 11 years ago, has been in occupation since 2006 with just over three years remaining on its lease and is paying $159,430 per annum plus GST in rent.

New Hope Church, a Korean community church group, occupies the smallest tenancy, with a net lettable area of 1348.8sq m. The church is on a monthly lease earning $102,648 per annum plus GST.

An area of 622.8sq m, which is underwritten for three years, generates $78,236 per annum plus GST.

Prentice says the East Tamaki area is an established industrial location that is home to many prominent businesses.

“The introduction of Highbrook Drive motorway off-ramp and Goodman’s Highbrook Business Park have really transformed East Tamaki in recent years,” he says.

“Not only is the area more accessible, it has also increased in desirability through quality new buildings and improved amenities.”

 True Commercial - Andrew Hooper%2c Colliers.jpg (2) True Commercial - Dwayne Warby of Colliers International.jpg True Commercial - Matt Prentice%2c Colliers International.jpg (2) 

Andrew Hooper, Dwayne Warby, Matt Prentice of Colliers International.