New Lynn property a stable passive holding
Aerial view of large industrial property for sale at 34 Portage Rd, New Lynn.
A large industrial investment property on the eastern edge of the fast growing New Lynn commercial centre in West Auckland is for sale.
Chris Upright and Dhiru Patel of Colliers International are marketing the property, across two titles at 34A and 34B Portage Rd – to be sold together or separately by deadline private treaty closing on October 4 unless they sell earlier by negotiation.
Upright says a single tenant, Affordable Granite Benchtops, occupies the entire property on a 12 year lease, making the property an excellent investment or land bank opportunity.
The 5354 sq m site, with sealed yard and parking, is occupied by two similar-sized factory and warehouse buildings encompassing a total net lettable area of 3153 sq m over two levels.
Affordable Granite Benchtops uses the site for manufacturing made-to-measure engineered stone, granite and marble benchtops, hearths, tabletops and vanities. It also has a public showroom on the property.
The business has been in occupation since 2011, contributing net annual rent of $188,609. Rent reviews linked to the Consumer Price Index are built in, providing the potential for income growth.
Upright says the tenant has more than seven years remaining on the lease term, extending through to the end of 2022, which makes the property a stable, passive medium-term holding.
Patel says a lack of industrial land in New Lynn gives the property scarcity value.
“New Lynn is viewed as an excellent business location due to its rapid development and being close to the motorway network with quick access to the Auckland CBD. However there is limited industrial capacity here and very few comparable buying opportunities.”
“Properties like this don’t come up very often in New Lynn, so we expect a lot of interest from buyers who will recognise the potential long-term value in a large, rarely-available site like this one.”
Upright says Auckland Council and private developers are pumping a lot of funding into developing New Lynn in line with the council’s masterplan for the area, which sets out the vision to be achieved by 2030.
The plan states that New Lynn will, by 2030, be a sustainable, urban place centred on a world class transit interchange capable of attracting and maintaining a population of 20,000 residents and 14,000 workers.
“The completion of the transport interchange in September 2010 was the country's largest-ever public transport infrastructure investment and was the first step in New Lynn’s long-awaited regeneration,” Upright says.
Several other current and planned property and transport related initiatives will pave the way to New Lynn becoming an important regional town centre. These include significant housing developments, a $30 million extension of LynnMall and a major, Mixed Use zoned ‘transit oriented development’ around the new transport interchange.
Roading projects include a streamlined link to the Maioro St entrance to the southwestern State Highway 20 motorway and the Waterview Connection of SH20 and SH16 will also improve access to the area.
“The southwestern motorway is a key transport link to businesses in New Lynn and will become even more functional with the completion of the Waterview Connection tunnel. It will provide a much-improved route to the airport and destinations further south for businesses and residents in West Auckland.”
Chris Upright of Colliers International.
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