Industrial and retail properties to go under the hammer

5:00 AM Saturday August 8, 2015 Colin Taylor

Units A & B at 39A Lady Ruby Drive, in the heart of East Tamaki’s industrial hub.

Three South Auckland industrial properties and a retail building forming part of Barfoot & Thompson’s latest Insite commercial property portfolio will be auctioned later this month at the agency’s central city rooms.

An East Tamaki warehouse with office complex described as “superbly located” is one of the offerings at the August 20 auction which commences at 10.30 am on Thursday, August 20 at 34 Shortland St.

“This prime investment property designated Units A and B at 39A Lady Ruby Drive, was built in the mid 1990s and is in the heart of East Tamaki’s industrial hub,” says Jesh Jaskiewicz who is marketing the adjacent units with colleague Paul Vermaak. “They have a high profile road frontage, each comes with 12 car parks and have easy access to the State Highway 1 motorway”

The freehold in stratum 554.63 sq m Unit A encompasses 379.03 sq m of ground floor warehouse space with an all-weather loading canopy of 27.37 sq m; 129.22 sq m of first level offices and 46.38 sq m of downstairs amenities.  

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The open span warehouse with offices at 50 Andrew Baxter Drive.

“This leased investment property is being sold with the adjacent 490 sq m Unit B which also fully let at under $100 per square metre net per annum,” Jaskiewicz says.

Situated on a level site Unit A earns $55,000 per annum from a three year lease commencing on May 5, 2014 with three three-year rights of renewal and rent reviews every two years linked to the Consumer Price Index. Unit B earns $50,000 annually also with a three year lease.

Vermaak says Lady Ruby Drive is an industrial street off the eastern side of Springs Rd. Brand name businesses in the area include: Movenpick, Bridgestone, Isuzu, Yamaha, InZone and Stephenson Industries.

“The area continues to be a developing and sought-after industrial location with a number of new buildings constructed in the immediate vicinity in recent times,” Vermaak says.

The flat Business 5 zoned site rising above the road is a rectangular lot with a street frontage of 44 metres and a depth of 82 metres.

Unit construction is of concrete foundations and floors with tilt slab walls, plasterboard walls, aluminium joinery and Longrun steel roofing.

Another prime industrial investment property that will go under the hammer at the same time is an open span warehouse with two levels of offices at 50 Andrew Baxter Drive, Airport Oaks.

49 Plunket Avenue, Unit D, Manukau - interior.jpg

 Unit D at 49 Plunket Avenue, Manukau, houses a mechanical services business.

David Sylvester who is marketing the property with Kian Ormond says a lease is in place producing a passing annual income of $110,000 net with the next rent review being just weeks away on September 23.

“This property satisfies all of the key investment elements in a great location, on a freehold title, of modern low maintenance construction with an established tenant in place,” Sylvester says. “The building’s configuration is suited to a wide range of businesses with a sensible office to warehouse ratio and a secure yard area with perimeter electric fencing and security lighting.”

Zoned Business 5 under the Manukau Operative District Plan 2002, the property comprises a building area of 1286.88 sq m on an 1870 sq m site which includes 20 car parks. 

The building houses a single story warehouse and associated offices to the front over two levels with the building set back from the frontage to allow for on-site parking and ingress/egress to the warehouse which has truck roller doors either side of the offices. The main warehouse space is open plan with a good supply of high bay lighting supplemented by translucent roof sheathing. At both side of the front western elevation are motorised roller doors giving direct access from the front yard to the warehouse. The ground floor offices are mainly open plan with two partitioned offices. The first floor offices comprise three offices with the remaining space being open plan.

The building at 89 O'Shannessey St in  Papakura Town Centre has three shops and two residences. 89 O'Shannessey St, Papakura.jpg

The complex is fully leased to S&Y Steel Construction Ltd with a sub-lease in place to Sky Ocean Logistics.

“Only a short distance from Auckland Airport the popular Airport Oaks industrial area is home to many of Australasia's largest logistics and customs companies and has excellent access to State Highways 1 and 20 linking to the CBD to the Southern Corridor,” Sylvester says.

“Freehold properties in this area are difficult to purchase due to its popularity with publicly listed property funds and larger investors who consider the location as a long term hold proposition.”

Ormond says an Initial Evaluation Procedure (IEP) report scores the property at 94 per cent compliant to the National Building Standards (NBS).

Construction is of concrete foundations, floor slab, block walls along with a solar tinted glass curtain to the offices which have internal plasterboard walls. An RSJ portal frame supports Longrun roofing and joinery is of aluminium. 

Jaskiewicz is marketing another freehold in stratum industrial property for the auction, this time in Manukau.

Built in the 1970s Unit D at 49 Plunket Avenue comprises a mixture of warehouse space and offices with six car parks and a good road front profile.

The 312 sq m ground floor level consists of a reception area, amenities and warehouse with four offices located within the mezzanine area.

“The building has significant rental potential and is being sold with vacant possession, which will appeal to investors and owner occupiers,” Jaskiewicz says.

Zoned Business 5, the property’s warehouse has a five metre stud with drive-through access. 

The warehouse houses a mechanical services business, and accommodates three car hoists, three phase power and air. It also has two garage roller doors allowing drive through access to the rear to the car parking area.

“The offices are finished to a very good standard, with plaster walls and aluminium joinery to the front, and wooden joinery on the side of the building,” says Jaskiewicz.

228 Great South Rd, Otahuhu.jpg

This single level retail building at 228 Great South Rd, Otahuhu, is for sale with vacant possession. 

Construction materials are similar to those employed in the previous two industrial buildings in the portfolio.  

Plunket Avenue is a partially industrial street and the property is close to the intersection of Cavendish Drive which gives good access to the motorway systems.

Sylvester is another agent marketing another offering to go under the hammer on August 20 but this time it’s a mixed use property at 89 O'Shannessey St in the Papakura Town Centre.

The freehold commercial property on one title consists of a standalone building containing three shops on the ground level and two residences above with additional balconies and basement storage. A right of way runs behind the building giving dual street entry/egress and providing loading access to the retail tenants and the four dedicated car parks.

“This split risk property with five income streams should be seriously considered by owner occupiers, commercial investors and residential investors looking to invest in a property with true add value and future growth opportunities,” Sylvester says.

The 565.5 sq m building on a freehold site of 410 sq m fronts O'Shannessey St and currently has two retail and two residential tenants. One shop is available for lease but has not been advertised with the previous tenant only having vacated on August 1. All leases are gross leases inclusive of GST and outgoings; and power is separately metered in each tenancy.

The level and rectangular site has a 15 metre frontage to O'Shannessey Street and an average depth of 27 metres.

Sylvester says the building was constructed about 50 years ago with upgrading undertaken at various times over that period.

It has concrete foundations, concrete and timber floors and a variety of external claddings including concrete block work, rendered concrete and brick veneer.

Sylvester says the Papakura Town Centre is undergoing considerable change with a number of two level retail properties having been redeveloped to provide residences on the upper levels. “In particular food and service type businesses are involved in this transformation,” he says.

“New housing developments and a big population growth forecast for Papakura are attracting high investor demand with Papakura District's population estimated to be growing at three times the rate of New Zealand as a whole. The city council is planning for Papakura's population to more than double by 2050.”

Another property featured within the latest Insite portfolio, but not going to auction, is 228 Great South Rd, Otahuhu, which is being offered for sale with vacant possession by Ewan Orsborn and Chas Wong via deadline private treaty closing at 4 pm on Wednesday August 19.

“This is a single level retail building on a highly visible corner site in the Otahuhu business precinct,” Orsborn says.

“It has favourable seismic reports and presents a significant opportunity to both owner occupiers and investor looking for a well located, freehold retail property in an area where there is strong local demand for retail activities and a zoning allowing for redevelopment,”

The 248 sq m building comes with three car parks and occupies a 406 mixed use zoned site on the corner of Great South Rd and Gordon Rd with access to both street frontages.

“The location is metres from the Princes Street and Great South Road roundabout and has angle street parking on its main frontage,” Wong says.

Erected in two stages, the building is of concrete block construction with brick and stone façade, and Longrun iron and Super Six roofing.

The carpeted retail area has full height glass and a recently amended council Initial Evaluation Procedure (IEP) assessment for earthquakes of 34 per cent.