Three top Penrose units occupied by high profile tenant

9:37 AM Saturday October 18, 2014 Colin Taylor

Exterior elevated view of 419 Church St East, Penrose, in which three commercial units are for sale.

Three high profile Penrose commercial units leased to well known property development company Southpark Corporation are being marketed for sale as ideal investment properties.

In separate stratum in freehold titles, Units B, D and E at 419 Church St East are being offered to prospective purchasers as a single package buy or as individuals units.

“All three of the units have eight year leases to a nationally branded tenant which has been in occupation for a long time,” says Cam Paterson of Barfoot & Thompson Commercial who, with colleague James Marshall, is marketing them for sale by deadline private treaty closing on November 13.

They are hands free investments for purchasers in a location popular with industrial and commercial uses due to the central Auckland location and easy access to the motorway network,” Paterson says.

Total annual rent earned from all three units and on site car parks is $405,405.

The smallest of the units is Unit E comprising office space of 374 sq m and generating $80,890 per annum. Open office space in the unit is divided into several smaller offices around the perimeter and the unit comes with 15 car parks.

Unit D has office space of 409 sq m and earns annual rent of $83,465. Like Unit E it is an upper level unit accessed via a stairwell off the main foyer area and is allocated 10 car parks. “This unit has excellent natural light and is a size that is always in high demand,” Paterson says.

Unit B is the largest of the units returning $87,690 from 474 sq m of ground level offices along with $134,640 annually from a 1122 sq warehouse, and a further $18,720 from 24 car parks giving total annual rent of $241,050.

The unit has access from the main foyer area and direct access to the car park.

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Wide horizontal view of the entrance to 419 Church St East, Penrose, in which three leased commercial units are for sale.

“The combination of office and warehouse space is always highly sought after in this location,” says Paterson.

Office space in all three units is charged at $185 per sq m while the warehouse space is $120 per sq m. In addition 49 car parks rented weekly for $15 per week generate a total of $27,560 a year.

Tenant Southpark Corporation is a privately owned company founded by executive director John Sax that has successfully developed commercial, industrial and residential properties for over 30 years completing over 60 projects mainly in the industrial sector for major companies like Steel & Tube, Wilson & Horton, PDL Industries, L’Oreal Paris, Siemens NZ, Phillips New Zealand, Croxley Stationery and BJ Ball.

In July, Sax the founder of For the Sake of Our Children Trust which campaigns against child abuse, announced plans for a $900 million housing project comprising 1600 houses. Preliminary earthworks have now commenced on the 15ha former market-gardening site in Walmsley Rd, Mangere.

The company led the redevelopment of heavy industrials sites such as those occupied by the former Affco and Hellaby freezing works; Shortland works, Taniwha works, Pikes Point, and Roscommon Quarries – along with the Kensington Park housing project in Orewa and Takapuna Tower. Southpark is also involved in the huge 114 ha development of Waterloo Business Park 10 km from Christchurch airport in a joint venture project with Southland-based Stewart Transport Ltd.

The company is the largest holder of vacant land within Penrose, Mt Wellington and the Onehunga areas of Auckland with significant holdings in Newmarket, Manukau, Orewa and Takapuna.

Marshall says the Church St East units are zoned Industrial 6 under the Operative District Plan which is commonplace in Penrose and allows lighter industrial and office uses. “However, the Proposed Unitary Plan ‘indicates’ a zoning of Heavy Industry which will allow for a great scope of usage in the future.”

The parent site is 5456 sq m with a 66 metre frontage to Church Street East which provides the main access while a second entry to the property is via a right of way driveway from Hugo Johnston Drive.

Church Street is a major road in the arterial links from the suburbs of Onehunga and Penrose to the State Highway One motorway, the airport, Great South Rd and Auckland CBD.

Marshall says the immediate location has a wide range of commercial and industrial activities including warehousing, manufacturing, production, commercial offices trade retail. “The area is a popular business hub due to its central locality and the easy access it offers to the motorway network and surrounding complementary businesses.”

He says the building construction is of concrete, reinforced concrete frame construction and long run steel roofing. All units have ducted air conditioning, thermal detectors, break glass alarms, hose reals, fire extinguishers and exit signs. 

“The overall site is well presented with attractive gardens and sealed car parking,” Marshall says. 

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James Marshall (an agent of Barfoot & Thompson) ‘The area is a popular business hub due to its central locality’.