Solid industrial Henderson investment property
Exterior elevated view of large industrial property for sale at 17-19 Paramount Drive, Henderson.
Brokers marketing a big industrial property in Henderson say it presents a good opportunity to secure a West Auckland quality industrial holding at a competitive price.
“This is a solid investment, currently generating annual net rent of $460,000,” says
Chris Upright of Colliers International who, with colleague Dwayne Warby, is selling the property at 17-19 Paramount Drive by deadline treaty closing at 4 pm on November 5 unless it sells earlier.
The buildings on the freehold 7022 sq m site comprise two warehouses and office facilities totalling 3724.6 sq m of floor space made up of 1747.8 sq m in Warehouse 1; 1367.3 sq m in Warehouse 2; 76.8 sq m of warehouse offices and a further 532.7 sq m of office space. Canopies provide a further 31.2 sq m of covered loading and unloading space.
The complex is on northern side of Paramount Drive just 1.4 km from the Lincoln Rd junction of the north western SH16 motorway.
Upright says the property is currently zoned Working Environment Lincoln within a wide-ranging industrial precinct and will be zoned Light Industry under Auckland’s Proposed Unitary Plan allowing for manufacturing, production, logistics, storage, and transport and distribution facilities.
Mug shot of Chris Upright of Colliers International who is quoted in the story.
He says modern, well-presented industrial premises of this size don’t come up that often, and this particular property presents buyers with attractive, future possibilities.
“Buildings of this scale and quality are in demand, especially in popular industrial precincts like Henderson. With very stable returns on offer for the remaining few years of the tenant’s lease, we expect this property to be an appealing proposition for purchasers looking to buy well in a good location.”
The tenant, Interpac is a specialist folding carton manufacturer producing quality products and packaging solutions that was recently been bought by Huhtamaki (NZ) Holdings Ltd. Nearly three years is left to run on the lease but the tenant does have an option for early exit with the earliest termination being February 2016 with a six month notice period.
“The immediate scenario allows prospective buyers to secure this investment for their portfolio and leave the current tenants in place,” Upright says. “However an owner occupier could expedite availability of the premises for their own purposes.”
Warby says the premises comprise an attractive, high specification work environment which will suit a wide range of future tenants or occupiers.
“The complex commenced as a 1995 warehouse and office building that was extended in 2000 and again in 2006. The building areas are linked internally to provide an efficient work space. The latest warehouse addition is used for printing packaging and benefits from a positive pressure system which aids dust control.”
Warby says warehouse construction is a medium stud height, steel frame with part concrete tilt slab and part profile steel cladding, including long run profile steel roofing. Externally there are separate tar-sealed areas providing generous car parking and a large level yard suitable for truck access and containers.
“Having sufficient sealed space to be able to turn and manoeuvre large, articulated trucks on site with ease is an increasingly difficult proposition in crowded, fast-developing industrial locations. However this property at Paramount Drive has that space,” says Warby.
He says the property’s location and motorway access make it especially suited to a distribution-focussed company.
“The imminent completion of extensive motorway upgrades means this location is ideally placed whether the business’ focus is north, south, east or west,” says Warby.
Dwayne Warby agent with Colliers International
The north western motorway (SH18) is accessible from the nearby Lincoln Rd interchange and the new Western Ring Route motorway upgrade will improve travel to the north. The Waterview tunnel that is under construction will substantially reduce travelling times by bypassing the Auckland CBD, and giving easier access to Auckland International airport and the State Highway One motorway.
“Paramount Drive also links Lincoln Rd and Central Park Drive - the two main industrial-commercial streets in Henderson,” Warby says. “This developing locale is occupied by a wide range of branded businesses drawn by its closeness to the Auckland CBD, the motorway network and having large residential areas nearby.
“Staffing is always an important consideration, and west Auckland offers the dual benefit of established and ever-growing residential catchments within a very short commute of significant industrial parks like this one.”
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