Industrial sites in demand in ‘unexplored’ Otara
This three-bay warehouse and office complex is for sale at 12-16 Lovegrove Crescent, Otara.
Another large warehouse and office complex, fully leased to Trans-Space Doors Limited in Otara, is for sale following a number of recent transactions in the south Auckland suburb which is becoming a popular industrial location.
Tim Boyle and Nikolai Vulinovich of CBRE have been appointed sole agents to market the 2118 sq m facility on a freehold 3594 sq m Business 5-zoned site at 12-16 Lovegrove Crescent with expressions of interest sought before Christmas.
Boyle says CBRE has sold a number of properties on Lovegrove Crescent in recent months.
“We are seeing growing demand for Otara off the back of low vacancy in East Tamaki and the area’s closeness to State Highway One.
“The tight market means that relatively ‘unexplored’ areas like Otara are coming into view for investors and occupiers as they have good fundamentals.
“The recent sale of Lots 1-4 at 15 Lovegrove Crescent is a case in point. This industrial property was purchased by an investor who will develop the site and who will be looking for tenants seeking up to 4000 sq m of space in the New Year.
The sale of this Euroclass industrial property at 89 Richard Pearse Drive, Mangere went unconditional two weeks ago.
“Lovegrove Crescent is also close to many amenities, including a shopping centre, retail outlets, petrol stations and a strong labour pool,” Boyle says.
The building at 12-16 Lovegrove Crescent comprises three warehouse bays with associated office space towards its frontage which is only 1.1 km from the north-south motorway via the East Tamaki Road interchange.
The 1804.99 sq m of warehouse space is of low to medium stud height and is accessed from two yard areas via multiple roller doors situated at the front and either side of the building.
The 177 sq m ground floor offices are complemented by 125 sq m of office space on the first level.
Vulinovich says other established occupiers in the area include Designer Textiles, the Manukau Institute of Technology and Viking Group.
“The property has an excellent office to warehouse ratio, with the tenant using a portion of the ground floor area as a showroom adjacent to the main reception,” he says.
Vulinovich says the lease to Trans-Space Doors Limited is due to expire in September next year but a recent valuation has indicated the complex would achieve a market rental of $172,500 per annum.
“As the property offers holding income until September 2015, it would suit both an owner occupier looking to move in at that time or an investor seeking a high return.”
CBRE offices in Auckland, South Auckland and Christchurch have worked collaboratively over recent months to sell two A-grade South Auckland industrial properties on behalf of Euroclass Design & Build.
Sold by CBRE agents Paul Steele, Mark Bramwell and Mike Beresford, a large industrial complex at 12 Ha Crescent in Wiri was bought several weeks ago by Christchurch-based Irvine Flooring which now bases its North Island distribution from the 6500 sq m site.
The Euroclass constructed property encompasses a 3888 sq m clear span warehouse with 10 metre stud height and a 1043 sq m drive through canopy, plus 278 sq m of offices and a secure 2334sq m concrete yard.
Steele says Irvine Flooring came up to Auckland from Christchurch after the earthquakes and leased space within the building as a tenant. “Their purchase of it is an example of an ongoing shift into owner-occupation, particularly in the fast-growing Wiri industrial zone, where Euroclass is developing the Stonehill Business Park.”
The Ha Crescent sale was followed by the sale of 89 Richard Pearse Drive in Mangere in a transaction that went unconditional two weeks ago.
Sold on behalf of Euroclassby Lindsay Jackson of CBRE Auckland and by Claus Brewer and Tim Boyle in CBRE’s South Auckland office, the property was purchased by an investor.
Occupying a flat 9144 sq m site that creates space for a large yard for all-weather loading and unloading, the property has a 5110sq m clear span warehouse with 10 metre stud, 800 sq m of offices over two levels, plus a 1064 sq m canopy complemented by three roller doors giving access to the warehouse.
This large Euroclass industrial complex at 12 Ha Crescent in Wiri was purchased recently by Christchurch-based Irvine Flooring.
Boyle says the property overlooks a reserve, has quality neighbours and is close to the Airport Oaks and Auckland Airport shopping centres
“The investor sought an A-grade property, preferably in the popular Airport precinct, which is home to many of Australasia’s largest logistics and customs companies. It is only a short distance from the airport, with excellent access to SH1 and SH20 linking the Auckland CBD to the southern corridor.
“As there is very little grade A-grade property available in the market right now, and interest rates are flattening, owner occupier demand continues to be very strong and is likely to continue,” Boyle says.
Brewer, director of CBRE’s industrial and logistics services business based in Mt Wellington, says collaboration between the agency’s offices is at the heart of CBRE New Zealand’s selection as a finalist in the International Property Awards.
“We are achieving great success due to our collaborative approach,” Brewer says “Premium grade industrial properties are extremely hard to find, and owner occupiers and investors are actively seeking properties. Our joint approach is proving to be the key that unlocks the door for investors and occupiers into great properties in new areas across the Auckland region.”
Brewer says CBRE was recognised in May this year as the Best Property Consultancy in Asia Pacific at the Asia Pacific Property Awards 2014-2015 and CBRE New Zealand is now competing against other regional winners from Africa, Arabia, Europe, UK and the Americas for the World’s Best Property Consultancy award. The winner will be revealed at an awards ceremony in Dubai on December 4.
CBRE was initially named Best Consultancy in New Zealand before being selected as the winner at the Asia Pacific International Property Awards, which were announced on May 9 in Kuala Lumpur, Malaysia – thus qualifying CBRE New Zealand for entry into the worldwide awards.
Brent McGregor, CBRE senior managing director New Zealand, says winning both the Best Property Consultancy for New Zealand and the Best Property Consultancy for Asia Pacific was an outstanding achievement and “it would be another feather in our cap to be named the best internationally.
“Our professionals work hard every day to deliver the best real estate services to our clients, and these accolades are a testament to their efforts,” he says.
Tim Boyle of CBRE.