Henderson industrial has high profile tenant
This warehouse and office property for sale at 133 Central Park Drive, Henderson.
A Henderson industrial property used by global industrial giant ABB to make transformers using New Zealand technology is on the market for sale.
ABB, the world’s biggest supplier of industrial motors and drives, wind industry generators and power grids, has been at the 133 Central Park Drive site for more than 20 years.
The company once owned the entire 3.36 ha estate but the global conglomerate decided it would rather lease than own property and it was sold to a developer who put a unit title plan over the estate.
Since 1997 the leased warehouse and office complex has been indirectly owned by a family trust, which bought the unit titled site from the developer.. The trust has decided now is the right time to sell the ABB occupied 2630 sq m building, with 50 car parks and a fenced concrete yard.
“ABB and the owner have spent a considerable amount of money recently upgrading the property,” says Paddy Callesen, Savills joint managing director who, with broker Bruce Webb, is selling the property via private treaty with offers closing on Thursday May 14.
“New skylights and a fenced concrete yard have been added and the warehouse floors have been painted with a dust-free high quality finish in a major improvement to the property. There is also a new ventilation system for heat extraction making the factory area a more pleasant area to work in.”
“The building is freestanding with visibility to the northwestern motorway and, while ABB has made the property ideal for its transformer business, it is the epitome of a good office and warehouse for general use as well.”
Webb says the property built in the 1980s is typical of an industrial complex erected in that era. The building comprises of 360 sq m of office, a 2183 sq m warehouse, a 63.5 sq m mezzanine floor and a 22.5 sq m outside shed. Several small exterior buildings have also been erected as part of the recent capital upgrade at the tenant’s expense.
Aerial view of warehouse and office complex identified by a red border.
“While the complex is contained within a unit title and is one of seven units, each of the units is freestanding with the internal sites serviced by a common area ring road. They form part of the site zoned Working Lincoln under the former Waitakere City Council scheme and Light Industrial under the Proposed Auckland Unitary Plan.
ABB manufactures more than 2000 small transformers every year at the property which the public will recognise as “the little green boxes” sitting on roadsides fitted with transformers.
The company pays yearly rental on the building of $248,749 plus operating expenses and its lease on the property runs until April 2018 when three, three-year rights of renewal kick in.
Over the past decade the Central Park area has moved from a light industrial precinct into a commercial, showroom and retail hub, with uses changing higher and better into those associated with service industries.
Callesen says there is limited business land available and companies wanting to build close to the State Highway 16 northwestern motorway are struggling to find suitable sites. “The last deal done in the area was a 1.1 ha site rumoured to have been sold for more than $550 per sq m to a car dealership, taking the property well outside industrial land values.
“At that sort of price any industrial development would be difficult to make stack-up financially. Whoever buys the property will be able to collect sizeable rent and ultimately change the land’s use to a sector that will give better returns.
“ABB is committed to the site and has another nine years left until its lease runs out. It has been on the site for two decades and has a major capital commitment to the property. The property’s location and tenant strength are the main attractions for any buyer.”
Based in Zurich, Switzerland ABB employs 140,000 staff worldwide and operates in 100 countries. Last financial year the company’s net income was $2.6 billion and its shares are traded on the stock exchanges of Zurich, Stockholm and New York.
Central Park Drive is in Henderson’s industrial heart linking with Lincoln Rd which in turn, connects to the northwestern motorway. The motorway is undergoing a $100 million upgrade that includes substantial widening and improvement as the number of new residential estates in the west continues to explode.
It is part of the $1.4 billion Western Ring Route which, when finished, will link the SH16 and SH20 motorways. This will act as a major catalyst for the industrial property market, significantly improving connections between established business precincts in the south of the city with rapidly expanding areas in the northwest. Work on the Lincoln Rd interchange will be finished this year.
What’s on offer?
The property: Warehouse and office complex
Location: 133 Central Park Drive, Henderson
Sales method: Private treaty closingThursday May 14.
- Long established international tenant.
- Recently upgraded.
- Lease runs to April 2018 when three 3-year rights of renewal.
- Earns annual rent of $248,749 plus OPEX.
- In area of limited business land available.
Paddy Callesen, Savills joint managing director (left) , and Bruce Webb of Savills (right).