Big rare Northcote industrial property

4:50 PM Friday June 5, 2015 Colin Taylor

Navman Wireless NZ has refurbished space in this ‘stand out’ building at 7-21 Kawana St, Northcote.

One of the largest industrial investment properties on Auckland’s North Shore is for sale for the first time in more than 30 years.

The big 1.95 hectare freehold site encompassing 7-21 Kawana St and 49 Woodside Avenue, Northcote, is occupied by four, large office-warehouse buildings with a net lettable area of 13,138 sq m. They earn a total of about $1.16 million in net annual rental income from seven established tenancies with structured rent reviews.

“Nothing on this scale has been offered in the North Shore industrial market before so we are expecting substantial interest,” says Craig Newth of Colliers International, who with colleague Matt Prentice, is marketing the property through a tender process closing at 9 am on Monday, July 6.

Newth says the property’s rare size and strategic location, close to both the State Highway One motorway (SH1) and the Auckland CBD, make it of immediate interest to investors, developers and also prospective owner occupiers.

He expects them to be attracted by the property’s quality multi-level buildings and strong tenant covenants with national and internationally known businesses along with “genuine, overall rental growth potential”.

However, he says one building stands out. “A new landlord will effectively inherit a multimillion dollar refurbishment undertaken by Navman when it redeveloped the largest building onsite from warehouse status to quality office space. The rental reflects the original building for which the current tenants pay a low rental.”

The established tenant mix includes the well known brand names of:  Philips New Zealand Ltd, Filtercorp International Ltd, Navman Wireless New Zealand, ECP Limited, Stainless Outdoors Ltd, Invenco Group Ltd and Telecom Mobile Ltd (Spark) which operates a cell-phone tower from the site.

Newth says the property has always been very well tenanted with minimal vacancy over the years which could give a new owner a degree of confidence in regards to the large and steady rental income.

“This solid, split-risk rental revenue should equally appeal to developers as an attractive holding income while extensive future plans are considered for the property.

“The site lends itself to possible subdivisions of individual titles which would have an upside for both speculative developers and investors.”

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Elevated view of industrial complex for sale at 7-21 Kawana St and 49 Woodside Avenue, Northcote – identified by a red border. 

Newth says developers could investigate its long term residential opportunities - given its location bordering substantial and established residential catchments.

Prentice says all of the steel framed, concrete panelled buildings have been erected by a sole family trust ownership over a 30 year period.

Three tenants occupy a 8015 sq m, two level, office-warehouse building that dominates the site and the road frontage onto Kawana St.  Filtercorp International, which manufactures and supplies industrial filters around the world, leases a combined 3241 sq m of ground floor office space with a 5.8 metre stud warehouse at the rear.

An adjoining two level, 4774 sq m of office space, which features a glass entry atrium - is shared by Invenco NZ (Level one) and Navman Wireless which specialises in GPS-based fleet and asset management technology.

A separate 4064 sq m, two level building is tenanted to lighting manufacturer and importer Philips New Zealand Ltd which shares the remainder of the road frontage onto Kawana St.  Its high, three metre stud ground-floor level is used as office and showroom space with direct internal access to a 6.7 metre high-stud warehouse attached at the rear. The 980 sq m of office area on the first floor is currently vacant.

The only building fronting Woodside Avenue is a 575 sq m office and warehouse occupied by Stainless Outdoors Ltd. The remaining 481 sq m building has no road frontage and consists of a standalone warehouse with a built-in mezzanine floor, wholly occupied by ECP Ltd - an environmental control products firm.

The surrounding secure yards are sealed and landscaped and provide 215 onsite car parks.

Prentice says the property’s corner location has a 173 sq m frontage to Kawana St – a quiet side street to nearby Lake Rd and Onewa Rd which are major arterials for the area.

“The area was originally developed to provide employment for the large, surrounding residential areas including Northcote, Birkenhead and Glenfield.

“The Business 9 zoned property is in a precinct that comprises one of the closest commercial hubs to the Auckland Harbour Bridge, Auckland CBD and the SH1 northern motorway.

“Due to the precinct’s size, value and accessibility it has attracted quality international and national brand-name tenants who have invested heavily in their premises - Sealy’s Beds is one example, located just across the road from this property.”

Prentice says transportation and distribution benefits are a feature of the location with the Auckland CBD a five minute drive away in non-peak conditions and both north and southbound on-and-off ramps to SH1 only a kilometre away.

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Matt Prentice (left) &  Craig Newth of Colliers.