An industrial facility with an established tenant near Auckland Airport is being offered to the market for sale, giving buyers the opportunity to purchase a well-located property with a steady rental stream.
Sitting at 131 Montgomerie Road, the asset has 3,554sq m of total net lettable area on a freehold site spanning 4,999sq m.
The property is tenanted by Inzide, a sustainable flooring solutions business that has been in operation for 20 years and has studios in Auckland, Hamilton, Wellington, and Christchurch.
On settlement, Inzide will begin an eight-year lease returning $623,990 plus GST in net annual rental income.
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Vanguard also leases additional space at the property on an expiring agreement that ends in April 2027 and provides $53,169 plus GST in net annual rental income.
The property benefits from approximately 50m of frontage to Montgomerie Road while a large concrete yard spanning 1,569sq m provides flexibility for tenants, customers, and suppliers. There are also 21 dedicated on-site car parks.
Sitting directly across from the subject property, Goodman is developing the former Villa Maria winery estate into their latest industrial subdivision, known as Waitomokia.
Auckland Airport is only 3.5km away, while the motorway network can be reached in a few minutes, providing efficient connectivity links throughout Auckland, Waikato, and the wider North Island.
The property is zoned Business Light Industry Zone under the Auckland Unitary Plan. This designation allows for industrial activities that don t generate objectionable odour, dust, or noise. This includes manufacturing, production, logistics, storage, transport, and distribution activities.
Colliers Directors Paul Jarvie, Brad Johnston, and Greg Goldfinch have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 13 May, unless sold prior.
The improvements at the property centre around a 2,995sq m medium stud warehouse that is supported by two levels of office space as well as 250sq m of canopy coverage that enhances operational efficiency and provides weather protection.
Jarvie, Director of Industrial at Colliers, says this is a functional asset that offers an excellent warehouse-to-office ratio and has a high level of visibility.
"Buyers seeking an investment opportunity in one of Auckland's key industrial hubs should give this property serious consideration," Jarvie says.
"Industrial vacancy rates across the wider Auckland region remain low compared to historical standards, underscoring the resiliency of the sector.
"Despite the recent economic challenges, industrial property continues to be a keenly sought asset class among buyers who recognise its long-term fundamentals."
Johnston, Director of Industrial at Colliers, says the strength of the tenant covenant will be appealing for investors seeking a passive income stream.
"Inzide is a New Zealand-owned and operated company that supplies leading floor solutions for its customers. They import exclusive brands that are market-leading and are renowned for their quality design and sustainability," Johnston says.
"The lease agreement with Inzide includes 2.5 per cent annual increases except for when there is a market review in year four and on renewal. This built-in rental growth is coveted by buyers. There is also a further right of renewal for three years."
Goldfinch, National Director of Industrial at Colliers, says the industrial precinct near Auckland Airport has long been a sought-after location among high-profile firms given its access to the transport network.
"The subject location provides rapid connectivity to State Highway 20, while having the airport nearby offers considerable logistical benefits," Goldfinch says.
"Prominent firms in the surrounding area include Mondiale, Hellmann Worldwide Logistics, and Foodstuffs, among a host of others. Purchasing opportunities like this are rarely found in this location."
- Supplied by Colliers
