Glenfield industrial ticks all the boxes
This industrial property at 35 Porana Rd, Glenfield is for sale – identified by a red border.
A tenanted industrial property in Glenfield with a long history of occupation beckons a savvy investor who recognises its future development potential.
The property at 35 Porana Rd comprises a freehold site of 1707 sq m with the building comprising a factory and warehouse of 535 sq m with office and amenities space of 80 sq m.
“What appeals about this property is its simplicity,” says Tim Turner of NAI Harcourts who, with colleague Marty van Barneveld, is marketing it for sale at 11 am next Wednesday April 1 at the agency’s auction room in Takapuna.
“The purchaser could choose to do nothing and keep it leased for its income stream, or in the future could expand the building and make the most of the large site,” Turner says.
“Normally commercial investments with a rental return of $67,700 are part of a unit titled development but 35 Porana Road is stand alone and freehold. The ratio of building to site area is about 33 per cent so there is clearly scope to enlarge the building down the track”.
He says the concrete block industrial building has a B-grade seismic rating of 68 per cent of National Building Standard (NBS) meeting government requirements for structural stability.
The tenant, Vartec Metal Fabrication Limited has occupied the property for 15 years and has just signed a new two year lease commencing March 1 for $67,700 plus per annum.
Varnebeld says the site works well for tenants or occupiers requiring factory workshops with a large yard component for the storage of goods or car parking. “And these properties are very scarce – especially in the Wairau Valley where vacancy is very low.”
“Alternatively, if the purchaser didn’t want to invest further capital straight away, many businesses in the area lack yard space for storage so there’s also potential to earn additional returns with minimal investment by offering on-site storage to neighbouring businesses.”
The property is currently zoned Business 9 and Light Industrial under the Auckland Council’s Proposed Unitary Plan.
It is strategically located within the south eastern area of the Wairau Valley about 300 metres southwest from its intersection with Wairau Rd and about five minutes’ drive from State Highway One motorway ramps at Tristram Avenue.
Nearby businesses include Pak N Save Supermarket, Mitre 10 and Bunnings.
Turner says the location, freehold status, a short term lease to a long term tenant, seismic grading and low site coverage which offers development upside; will tick all the boxes for buyers looking at the present and to the future.
“This is a low risk property but returns could be high,” Turner says.
“It is a basic building suitable for a wide variety of businesses like metal fabricators, builders and contractors, home improvement stores, mechanical and electrical workshops, panel beaters, auto electrical, trade retail and boat builders.
“The owner is motivated to sell this property which should appeal to a broad base of buyers including owner occupiers, developers and family trusts.”
Tim Turner of NAI Harcourts.