High five in central industrial spot

9:55 AM Wednesday September 17, 2014 Colin Taylor

The block of five units is at 18 Hannigan Drive, Mt Wellington.

Block of units in Mt Wellington is up for auction as a single investment

A fully leased block of five modern industrial units, each with its own certificate of title, in the Auckland industrial area of Mt Wellington is available to buy as a single investment.

The property, at 18 Hannigan Drive, features in Colliers International's latest New Zealand Portfolio magazine and is being marketed for sale by auction through Ash Vincent and Andrew Hooper of Colliers' industrial team based at Highbrook.

The property, on the market for the first time since it was built in 1989, is due to go under the hammer at 11am on Thursday, October 9, in Colliers' auction room at 151 Queen St, Auckland, unless it sells before then.

Hooper says the property, for sale as one parcel, is producing net annual rental income of $213,999 across five separate diversified income streams, providing a split-risk investment and control of all five titles.

"The ability to buy five individual unit titles as a single investment doesn't come up very often," he says. "Buying all the titles together provides an ultimate solution for ongoing flexibility of ownership - eliminating the need for body corporate negotiation if the new owner decides to make alterations to the property."

And with each unit sitting on its own title, the possibility could be explored of selling individual units to their tenants or other investors.

Vincent says the tenants have all occupied the property for many years, with some having invested heavily in their own fit-outs.

"They like the functionality of these units, which provide modern office and showroom areas, mezzanine spaces, amenities and high-stud, clear-span warehousing."

Hooper says the units are in exceptional condition and face another identical block of units across central car parking that has 36 spaces available for the five units.

"The versatility of the units, which range in size from 333sq m to 457sq m, is shown in the wide range of tenants. They comprise well-established businesses and include a packaging company, a Crossfit gym and a design company."

Vincent says the property forms part of the established and well known Hannigan Drive commercial and industrial precinct within Auckland's central industrial area.

"These units are popular with tenants because of their central Auckland location, with Mt Wellington being roughly midway between the Auckland CBD and Auckland Airport, both ... 12km from the property.

"This means they are ideal for firms requiring convenient access to the central city to service clients there, as well as to the airport and State Highway 1 motorway for ease of transit and deliveries."

Hooper says the latest survey by Colliers International shows that overall industrial vacancy in Mt Wellington is a low 3.2 per cent.

"The suburb has long been considered the most central of all the Auckland industrial locations, and it continues to be the home base of choice for many New Zealand businesses in a wide variety of sectors - as reflected in vacancy rates which have traditionally been low."

Vincent says the area's popularity as a business location is likely to increase further as a result of the huge privately and publicly funded Tamaki Transformation Project.

He says the property is in a strategic growth location near Stonefields and the Lunn Ave commercial strip which is attracting new tenants as a result of the major roading and transport infrastructure upgrades that are part of the Auckland Manukau Eastern Transport Initiative (Ameti).

The Ameti project includes upgrading major routes including Mt Wellington Highway and the Ellerslie-Panmure Highway to reduce travelling times to State Highway 1 and the addition of new routes.

The Stonefields residential project is on track for completion in 2015.

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What's on offer
The property: Block of five industrial units.
Location: 18 Hannigan Drive, Mt Wellington.
Agency: Colliers International.
For auction: 11 am October 9.
Where: Colliers' auction room,151 Queen St.
Features:
• Fully leased by established tenants.
• Total annual rent income of $213,999.
• For sale as one parcel.
• Sizes range from 333sq m to 457sq m.
• Within a strategic growth area.