Huge Avondale industrial site has big potential
Exterior view of 12 building complex for sale at 528-558 Rosebank Rd, Avondale – identified by a blue border.
A massive Avondale industrial property encompassing 12 separate buildings that are predominantly leased to one well-established tenant is expected to have wide appeal for investors.
Split over two freehold titles making up a site of nearly five hectares, the total building area spans more than 26,500 sq m at 528-558 Rosebank Rd.
“This is a solid industrial offering combined with a significant land holding in one of Auckland’s fastest growing industrial locations,” says Greg Goldfinch, national director of industrial sales and leasing for Colliers International who, with colleagues Dwayne Warby and Peter Herdson, is exclusively marketing the property for sale by deadline private treaty with offers closing at 3 pm on Friday March 18 unless it sells earlier by negotiation.
“This sale gives investors the opportunity to acquire excellent buildings on a big site with diversified income streams,” Goldfinch says.
“A key, underlying feature of the property is its long term potential conversion to bulk retail development and its ability to be subdivided into 12 separate titles - with the additional capacity to split the largest building into a number of smaller tenancies.”
The property generates an annual net rental income of $2.68 million, 70 per cent of which is paid by Etel Limited - a long-established, pioneering New Zealand business specialising in the design and manufacture of distribution transformers.
“Etel Limited was founded in 1956 as a specialised transformer manufacturer and distributor and has carved out a name for itself in the New Zealand, Australia and Pacific region,” says Goldfinch.
Etel is owned by Unison Networks, a subsidiary of the Hawke's Bay Power Consumers' Trust.
Other tenants include Mastip Ltd, a New Zealand company which is a global supplier of injection moulding hot runners for the plastics industry worldwide and which has offices in North America, China and Europe; Pharmacy Retailing (NZ) Ltd, a pharmaceutical wholesaler; Triquestra Ltd, a point of sale software company; and a Gloria Jeans cafe.
Goldfinch says the strong and diversified income stream will be attractive to many buyers.
“Investors are continually attracted to industrial property investments that are leased to multiple, strong tenants.
“Good industrial opportunities are in high demand from the investment community and the low interest rate environment looks set to continue for some time. Consequently, 2016 industrial yields may well continue the firming trend from last year, with buying opportunities very scarce for investors.”
Warby says the property, on the western side of Rosebank Rd, is a large mostly rectangular shape - apart from a sharply-angled rear boundary. “It adjoining an esplanade reserve with excellent views over the Whau River,” he says.
“The majority of the buildings on the property have been constructed to modern specifications within the last few years using high quality materials. The largest building in the centre of the site was constructed in the early 1960s and has excellent character features.”
Zoned under the current district plan as Business 5, the entire site is designated under the Proposed Auckland Unitary Plan (PAUP) as Light Industry.
Warby says the location underpins the property’s long term viability.
“West Auckland is the fastest growing area in the Auckland region thanks in part to rapid population growth and the ensuing suburban sprawl as well as a lack of commercial and residential development land in central Auckland and on the North Shore.”
Herdson says the Rosebank industrial area in particular has become a highly sought after business location due to its roading connections.
“The Waterview Connection now under construction will further enhance transport access to the area, enabling occupiers of this Rosebank Rd property to by-pass the Auckland CBD via seamless north-south motorway access to Albany and Manukau.
“The Rosebank area is regarded as the closest industrial precinct to Auckland City which is usually less than a 10 minute drive down the State Highway 16 northwestern motorway.”
Herdson says the location comes with the additional business appeal of being close to very large residential areas.
“Ease of staffing is always an important consideration, and West Auckland offers the benefit of established and growing residential catchments within a very short commute of significant commercial zones like this one.”
He says the Rosebank commercial and manufacturing precinct has undergone significant change in the last few years from large bulk industrial and manufacturing to a much more intensive and diverse business and retail profile.
“It’s now home to household brands like Cadbury’s head office and a new Bunnings Trade Centre that is directly adjacent to this property and which was specifically developed to service the rapidly expanding trade business and growth in demand for building products within Auckland’s western suburbs.
“Other well known brand names nearby include Blum, a premium Austrian kitchen brand and Autex Industries. Catering to the staff of all these business are well-known cafes like Columbus, Kreem and Gloria Jeans.