Mt Wellington opportunity for investor with vision

3:00 PM Monday June 20, 2016 Paul Charman

The building at 228-230 Marua Rd is occupied by a glass fencing company with a two-year lease.

A freehold site of 1,624sq m is for sale in Mt Wellington, exclusively through JLL.

The property at 228-230 Marua Rd has a 30 metre frontage on to Marua Rd and encompasses a mixed use building offering 2,400sq m of commercial space.

“This is an opportunity for an investor with vision to buy into a rapidly developing part of Auckland,” says Sam Smith, JLL’s national director of industrial sales and leasing.

“The area has changed massively in recent years with the establishment of the Stonefields development, which has brought significant commercial activity into the area.”

The property offers an investor future development opportunities and immediate cashflow. The income generated by the property is $75,000 per annum plus GST, which is derived from a tenant and a telecommunication aerial.

The site is zoned for Light Industry in the Proposed Auckland Unitary Plan, as are all of the adjoining properties. The properties on the opposite side of Marua Rd are zoned Mixed Housing Suburban.

This property is being marketed by Smith and Pritesh Ishvarial of JLL.

“Marua Rd is a busy thoroughfare of mainly industrial buildings. The property is very close to the busy commercial areas of Lunn Ave and Ellerslie-Panmure Highway,” Smith says. “The site is within an area forecast to experience significant population growth. JLL’s research shows residents within a 5min drive-time of the property tend to be younger and wealthier than the population as a whole. This is good news for investors looking for a premises for a commercial, retail or industrial venture.”

JLL Research and Consulting’s analysis shows a high proportion of residents in the area are within the 15-29 and 30-44 age brackets. There is a notable number of unmarried residents and households in the higher income quintiles. This gives residents a robust purchasing power of $31,545 versus the national average of $26,900 per capita.

“There are a number of special housing areas (SHAs) within a 5km radius of this property, such as the Northern Tamaki SHA with an estimated 927 dwellings, and the Tamaki Regeneration Area with more than 1600 dwellings,” says Ishvarial, JLL’s retail sales and leasing specialist.

The original building dates back to the 1960s and it has had various alterations and extensions over the intervening years. It is comprised of showroom, warehouse and office spaces.

It is tenanted by a glass fencing company, which has a two-year lease term commencing June 1 2015, with a further right of renewal of two years.

The telecommunication aerial on the roof of the property brings in $10,000 per annum plus GST. It has a 35-year term, with terminations possible at five, 10, 20, 25 and 30 years, and rent reviewed every three years.

The property is for sale through an expressions of interest process, which will close on June 30, if not sold earlier by negotiation.