Solid bottom drawer investment in Whangarei
The Whangarei properties for sale are shown inside the red border.
A significant industrial property in Whangarei has come to market representing a solid investment opportunity with future development potential.
Comprising a mix of buildings and extensive yard space spread across four freehold titles at 6-16 Union East St and 6 Bougainville St, Whangarei, the property – with a total land area of 13,471 sq m and total building area of 4770sq m – is being sold by deadline private treaty closing at 4pm on May 18 unless it sells earlier by negotiation.
“This property would be suited to passive investors seeking a safe and solid bottom-drawer investment with the added potential of development,” says Matt Prentice of Colliers International who is marketing it with colleague Mike Ryan.
“With four level and adjoining sites, it is a large land holding with comparatively low building coverage which is further strengthened by a strong tenant covenant.
“Established New Zealand manufacturing company Hansen Products has been designing, manufacturing and distributing high quality pipe fittings and valves for over 60 years and has just signed a new 10-year lease in the property earning $466,000 annually net plus GST.
“Though not only well known in Whangarei, wider Northland or nationally, Hansen Products exports to 13 countries; it’s a great example New Zealand success story,” Prentice says.
“The company is also a charitable community leader, highly regarded for sponsoring a range of different sports teams and individuals.”
The property itself provides future proofing for the business, Prentice says. “With large yard spaces, there is plenty of room for future expansion, and given Hansen’s track record this is not unlikely.”
“Meanwhile the 2287sq m site at 6 Bougainville St is a level property that has been cleared and finished with brown rock hardstand surfacing, with full security fencing installed.”
The property is in an established industrial subdivision extending off Kioreroa Rd, Ryan says.
“The precinct is situated about 2km to the south-east of Whangarei’s CBD and 2.5km north-east of access to State Highway 1.
“Many of the sites in this subdivision are on leasehold land, while all four titles in this property are freehold – making it even more of an appealing investment.”
Further underpinning the strength of the investment is its location overall, Ryan says.
“The property has a wide road front position in a low vacancy area that is undergoing growth mode — Whangarei’s annual growth rate stands at 4.4 per cent — higher than New Zealand’s overall growth rate of 3.9 per cent.”
“This is likely to be further stimulated by the increase of ships tipped to pass through Northport at Marsden Point, as well as the ‘four-laning’ of State Highway 1 between Whangarei and Auckland, due to be completed by 2022 and