East Tamaki’s triple industrial delight
Elevated view of three investment properties for sale at 5 & 9 Greenmount Drive and 83 Harris Rd, East Tamaki – identified by red border.
Three adjacent investment properties are being jointly offered for sale in Auckland’s East Tamaki industrial precinct, representing a chance to secure a large land holding in the suburb.
The properties, at 5 and 9 Greenmount Drive and 83 Harris Rd, are for sale by deadline private treaty closing on Wednesday May 20, through Dwayne Warby, Andrew Hooper and Matt Prentice of Colliers International’s industrial team.
“This is a great opportunity to secure a really significant parcel of land in a popular spot through buying all three properties,” says Warby. “Purchasing all three as a portfolio would give the buyer over two hectares of land in an L-shape across the three contiguous titles, with household-name Carters as neighbours.”
“A land holding of that scale is rare in East Tamaki,” Warby says. “In recent years East Tamaki has become very popular as a business location owing to its closeness to the motorway, airport and CBD. That has resulted in sites here being tightly-held, and it is very unusual to see three adjacent titles come up for sale like this.”
Alternatively, taken alone the properties each offer strong investment fundamentals for purchasers, says Prentice. “The properties are for sale separately, giving buyers the option to purchase one or more of the properties as individual investments with leases in place to established tenants.”
With land sizes between 3995 sq m and 12,090 sq m, each property is a significant land holding in its own right, Prentice says.
“These three properties each occupy prominent positions in one of South Auckland’s busiest and most intensified industrial locations. Harris Rd is one of the main arterials through East Tamaki giving great exposure for the occupiers and with the Highbrook Drive motorway ramps having improved State Highway One access dramatically in the area, easy accessibility is another beneficial feature of these investment opportunities.”
Warby says 5 Greenmount Drive is being marketed as a “classic hardworking industrial investment with a large north facing yard, ample parking and great street appeal”.
It also has a lease in place to national-brand tenant Apollo Motorhomes for a large, well presented warehouse that is used for campervan fit-outs. The property generates $195,000 in net annual rental income with the current lease term expiring at the end of April 2016 but including two further rights of renewal of six years each.
Warby says the office and warehouse makes up 2748 sq m in floor area on a 3995 sq m freehold site with excellent street profile.
At 9 Greenmount Drive, a 2905 sq m building on a 4512 sq m site has been occupied by Cinevan International Ltd since March 2012. The company imports and wholesales a wide range of household and personal products.
The current lease, generating $210,000 in net annual income, expires in 2018 with one four-year right of renewal available.
The largest property at 83 Harris Rd occupies a 12,090sq m site and is leased until January 2016.
Prentice says this would make it a prospective opportunity for owner occupiers looking to relocate in future. “It would also suit developers looking to reposition the property from an older office warehouse into a more intensified use such as smaller units or a combination of showroom, retail and/or office use,” Prentice says.
“With the current lease coming up for expiry, there are several attractive options for this property. We expect interest from owner occupiers and developers wanting to secure business premises in East Tamaki, as well as from active investors who could look to add value to the property and re-let it to a new tenant.”
Resource consent and full working drawings are in place for a new building to be constructed, featuring a 2916 sq m of high stud warehouse. Earthworks have been completed to enable construction to start immediately.
“The potential to extend the warehouse on to surplus land at the rear of the property is an added bonus for add-value buyers,” Prentice says.
The 4802sq m office/warehouse building has been modernised and is currently home to a TV production company, generating holding income until early 2016.
Hooper says the Harris Rd area is popular due to its exposure to high volumes of passing vehicles daily, and has quickly developed into a sought-after precinct for industrial occupiers.
“The properties have the further attraction of being positioned close to the busy intersection of Harris Rd and Ti Rakau Drive,” he says.
Greenmount Drive is also a busy road which connects Botany Town Centre with the southern end of Harris Rd for traffic heading south.
“The current Business 6 zoning or Heavy Industry designation under the Proposed Auckand Unitary Plan will be a further draw for investors, Hooper says.
“Business 6 zoning means these properties are suitable for the widest possible range of uses, including heavy industrial. This means investors will have a very wide target market if they are looking to re-lease the properties in the future.”
From left to right; Dwayne Warby , Andrew Hooper, Matt Prentice of colliers.