Potential to split building adds to its appeal

5:00 AM Saturday October 10, 2015 Colin Taylor

Elevated view of Unit A at 62-64 Diana Drive in the Wairau Valley, North Shore.

A large, recently refurbished North Shore office and warehouse property is for sale in one of Auckland’s most tightly held industrial precincts and is expected to appeal to both owner-occupiers and investors.

“This offering is particularly appealing given the critical lack of properties available like this in the area,” says Shoneet Chand of Colliers International who, with colleague Matt Prentice, is marketing Unit A at 62-64 Diana Drive in the Wairau Valley for sale by deadline private treaty closing on Thursday October 22 unless it sells earlier by negotiation.

Chand says the 2632 sq m premises is the only building over 1000 sq m currently on the market within the popular Wairau Valley Industrial Estate.

“The two levels of office and showroom floor space along with more than 1900 sq m of warehousing and storage presents the potential to split the building into multiple tenancies -

making it even more attractive to investors,” Chand says.

“Well-positioned, versatile premises of this nature are even harder to find in this locality and with no more land available, it’s unlikely any more will be built,” he says

Prentice says the property will be of interest to buyers looking for a large industrial property for investment purposes or for their own use in one of Auckland’s most popular industrial precincts.

The property comprises a substantial, road front industrial unit constructed in the mid 1980s, with carpeted, air conditioned and partitioned offices and a 5.2 metre stud warehouse.

The premises, with a National Building Standards (NBS) seismic rating of 80 per cent, underwent a substantial, internal refurbishment in 2012. This involved upgrading the 553 sq m first floor offices, 51 sq m mezzanine level and the 160 sq m ground floor workshop and showroom space to modern standards.

Chand says the quality warehousing and storage areas are complemented with four, well-positioned roller doors providing excellent access and multiple-use options to new owners.

The property also has 55 uncovered car parks which could potentially be used as container storage if required.

Leased to bathroom ware manufacturer and distributor, Newline Group (NZ) Limited, it offers holding income until the lease expires on March 31 next year.

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Street level view of 62-64 Diana Drive.

“The remainder of the lease gives an owner-occupier flexibility - allowing a purchaser time to prepare for relocation to the premises while earning an income on the property,” Prentice says.

 “With more than five months left on the lease term, a buyer also has time to search for a new tenant and negotiate a lease if wishing to hold the property for investment purposes.”

The lease to Newline Group, which is a longstanding occupier at the property, generates $358,600 in net annual rental income.

Prentice says tenants are scrambling for space so the property should appeal to an investor.

“Current, record low vacancy rates within the industrial sector are just 1.6 per cent and large, industrial buildings seldom become available in the Wairau Valley.”

The property’s elevated road frontage exposure and central location in the established Wairau Valley Industrial Estate are appealing factors.

“The address is just a 10 to 15 minute drive to Auckland’s central business district, and is only a few hundred metres from the Tristram Avenue, State Highway One, motorway on and off-ramps which further enhances its attractiveness to businesses and investors,” says Chand.

Chand says ongoing development in the vicinity has seen a number of well-known retail and commercial occupiers relocate there in recent years.

“Pak’nSave and Bunnings Warehouse have opened in the Wairau Valley within the past few years, complemented by a number of other new retail outlets”

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Shoneet Chand (left), & Matt Prentice of Colliers International.