East Tamaki property a hassle-free earner
The property, at 24a Harris Rd, is in a popular business precinct.
A showroom and warehouse in East Tamaki, leased to national company Tile Space, is on the market for sale by auction through Colliers International.
The property, at 24a Harris Rd in a popular business precinct, is being marketed for sale by Colliers brokers Jolyon Thomson and Paul Higgins. It is scheduled to go under the hammer at 11am on December 14 at 151 Queen St, Auckland.
A new eight-year lease to Tile Space, built in rental growth and a 12-month bank guarantee make the property a “true bottom-drawer investment”, says Thomson. “This is a very well-leased property which should be popular in the auction room. The long eight-year lease to a national tenant, strong rental growth and a bank guarantee as security will be viewed as highly desirable attributes among buyers.”
Higgins says the property’s investment fundamentals are further strengthened by its high-profile location on a busy road in a well-established commercial and industrial area. The property includes showroom, warehouse and amenity areas spread across 595sq m of floor space. Tile Space’s lease includes two further rights of renewal of four years each, with 2 per cent annual rental growth built in.
The property earns net annual rental income of $110,940, placing it in an affordable price bracket for many individual investors looking to enter the commercial property market or expand their existing portfolios, Thomson says.
“This property’s likely price range is ideal for the many buyers who are looking for secure, long term income-generating holdings. With borrowing rates still low, it’s never been a better time to invest in commercial property and access the superior yields the asset class offers.”
The hassle-free nature of the property, with its good tenant covenant, excellent location and new lease also make it ideal investment stock for individual buyers, he adds. “The investment characteristics on offer here are just what investors are looking for — it’s the whole package when it comes to the key fundamentals of location, tenant and lease terms.”
Tile Space is one of New Zealand’s largest tile importers and has exclusive partnerships with major tile manufacturers in Italy, Spain, Turkey, UAE, Brazil and Asia. There are 10 Tile Space stores throughout the North Island and 32 dealers nationwide.