Bus depot has development potential

5:00 AM Saturday July 9, 2016 True Commercial

The 10,841sq m site at 17-25 Brigade Rd, Auckland, is mainly used as a bus servicing depot.

A strategic, high-profile site in the sought-after Airport Oaks industrial precinct has been placed on the market, offering a diversified income stream with future development potential.

The property, at 17-25 Brigade Rd, Auckland, is being marketed by Brad Johnston, Paul Jarvie and Josh Coburn of Colliers International’s industrial team.

It is for sale by deadline private treaty closing on August 3.

The large 10,841sq m site, on two freehold titles, is mainly used as a bus servicing depot and is home to 11 tenants in total, says Johnston.

“This property offers a strong and diversified income from multiple tenants, making it an attractive investment proposition.

“Multi-tenanted investments like this one are always popular with buyers, owing to their reduced income risk.

“Add in the property’s three road frontages which give great visibility and you have a compelling set of investment fundamentals.”

Jarvie says the Colliers’ team also expects interest in the property from buyers looking to develop and add value in the future.

“The property is ideally suited to future development, given the popularity of Airport Oaks as an industrial precinct. The site currently has a very low building coverage ratio, so the development of a modern warehouse facility or smaller industrial units would be fairly straightforward. It’s high profile location among large-format, purpose-built industrial premises will certainly be of interest to industrial developers looking for a strategically-located opportunity.”

With tenants scrambling for industrial space in an increasingly tight market, the opportunity to purchase a relatively ‘blank-canvas’ site in a well-established location should mean the property is in demand among both investors and developers, Coburn says. “Seldom does such a strategic and high profile site come to the market in this location.”

The site is fully-serviced and level, with extensive sealed yards along with workshops, small offices and storage areas.

Tenants include Pacific Tourways, Bus Travel NZ Ltd, Airport Oaks Vehicle Repair Services, Barry’s Tyre Services and Waitomo Petroleum Ltd. Together, the tenants generate a total annual rent roll of $369,257.

A “massive” 300 metres of road frontage to three busy roads in the heart of the Airport Oaks industrial precinct means the site has huge visibility, Johnston says.

“Frontages to Brigade Rd, Rennie Dr and Richard Pearse Drive, give the property very high visual exposure which is a big plus from occupiers’ points of view.”

The Business 5-zoned site is located three minutes’ drive from Auckland International Airport. Other Airport Oaks tenants include DHL, DB Schenker, Hellmann, Freedom Furniture and Maui, says Jarvie.

“Airport Oaks is an established and popular business location, with many national and international corporations occupying superior quality facilities. Business land in this location has been progressively developed since the 1980s, with the area now proven as a convenient and well-located home for companies in a variety of industries.”

Airport Oaks is only 16km from the Auckland CBD via the Southern Motorway, and access to the west will be greatly improved with the opening of the Waterview Connection. Manukau and key markets south of Auckland, such as Hamilton, are also easily accessible from the airport area, making it a superior location for many businesses, Jarvie adds.

Johnston says that although the airport is a sought-after location for logistics operators, several other businesses have moved to the airport district from other industrial areas that don’t necessarily require a transit-oriented location, simply because the area’s connectivity and infrastructure has been developed to such a high standard.