‘Hands off’ industrial property in Penrose
Frontage view of refurbished office and warehouse complex at 274 Church St, Penrose.
A Penrose refurbished office and warehouse complex, marketed as an ideal passive investment property for family trusts and private investors, is for sale with a quality international tenant on a long term lease.
“This could be very hands off property for its new owner who would receive a good cash flow from a strong tenant,” says Ben Herlihy of Colliers International who, with colleague Hamish West, is selling 274 Church St, by deadline private treaty closing on Thursday June 11, unless it is sold earlier by negotiation.
Herlihy says the 2007 sq m freehold site and standalone building with a net lettable area of 1425 sq m generate net annual rent of $200,000 with built-in structured rent reviews.
The two-storey building, comprising both office and warehouse space, is occupied by Universal Communications Group NZ Limited, a large Australian based telecommunication company, on a five year lease term with rights of renewal for up to five years.
Universal Communications Group employs more than 100 staff in its Penrose premise and is one of Australia’s leading suppliers of telecommunication services. It holds a major New Zealand contract for rolling out fibre broadband and received an award last year for being among the Top 100 fastest growing companies in Australia.
Herlihy says the security of the investment is also underpinned by the property’s future prospects.
“This type of multi-purpose building is always in high demand, particularly by tenants requiring quality office space for knowledge-based and IT businesses. It also offers the sought-after feature of a central location between the CBD and industrial hubs.”
West says the building design is modern and innovative with convenient access.
“The office space is made up of a 376 sq m ground floor level and a 549 sq m top level extending over the front of the ground floor as a striking architectural feature.”
The 499 sq m clear span warehouse, with internal access from the offices, has a six metre high stud and double roller door access.
“Extensive refurbishments last year to both office and warehouse were of a very high quality including replacing walls and ceilings and a repainted interior,” West says. “The building also has an attractive glass frontage onto Church St.”
The property has dual access with a main entrance from Church St and an additional service line easement at the rear of the warehouse onto Henderson Place. There are 30 onsite car parks and plenty of street parking available in the area.
West says the property has a wide street profile on the northern side of Church St and its Penrose location provides easy access to the State Highway One southern motorway, connecting it to all major links.
“Penrose’s popularity stems from its relatively short distance from the CBD and its easy accessibility to Auckland Airport via State Highway 20,” West says.
“It is close to the nearby residential catchments of Onehunga, Mt Wellington, and Ellerslie with their large labour pools and Te Papapa train station is only 200 metres away.
“The immediate vicinity is made up of mainly of industrial and mixed commercial properties operating on large, freehold sites or unit developments. Nearby notable tenants include the Tile Warehouse, US multinational Tyco’s New Zealand head office and Ideal Electrical Limited.”
Ben Herlihy (left) and Hamish West (left) of colliers international.