An industrial property in the Auckland suburb of Wiri is being presented to the market for sale and gives buyers the opportunity to acquire an asset with significant redevelopment potential.
29 Hobill Avenue, Wiri, has 5,017sq m of total net lettable area on a substantial 15,904sq m landholding, a measurement that is subject to a boundary adjustment.
On settlement, the current tenant, National Steel, will begin a two-year lease that provides $900,000 plus GST in net annual rental income.
National Steel is a 100 per cent Kiwi-owned metal recycling business with a nationwide network of collection facilities.
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Wiri is an established industrial hub in Auckland that is highly sought-after among owner-occupiers and tenants.
Large-scale industrial operators including The Warehouse, Suntory Oceania, and Bluebird Foods have a presence in the area.
The property is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.
A key attribute of the zone is that it contains sites large enough to accommodate large-scale industrial activities.
Colliers Directors Mitch Broderson, Brad Johnston, and Edward Washer have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 1 July, unless sold prior.
The industrial facility at the property was originally constructed in the 1970s, but has been renovated and altered multiple times during the past few decades to accommodate a range of occupier requirements.
It has a substantial power connection and offers three points of access and egress to the site.
Broderson, Director of Industrial at Colliers, says buyers can secure a stake in one of Auckland’s most prominent industrial hubs through this asset.
“The property offers buyers the opportunity to acquire a substantial underlying landholding with a favourable configuration, and a future development would potentially unlock the value of the site,” Broderson says.
“There is holding income in place that will allow the new owner to plan their next moves, while enjoying the rental stream. National Steel’s lease does include potential renewal options that could be negotiated if it suits both parties for them to extend their stay.
“The zoning is a considerable advantage for a developer pursuing redevelopment opportunities, given the flexibility it affords. Owner-occupiers will also be drawn to the property as it will give them the chance to purchase a site of scale for their own business requirements.”
Johnston, Director of Industrial at Colliers, says Wiri is a prime location given its excellent access to Auckland’s motorway network and the suburb benefits from notable roading improvements that have taken place during the past few years.
“The subject property is only 900m from State Highway 20 and 3.1km from State Highway 1, meaning the future occupant will enjoy operational efficiencies through its strategic positioning,” Johnston says.
“Other key transport infrastructure such as Wiri’s inland container terminal is quickly reached, while Auckland Airport is only 9.2km away. Central Manukau is a short drive from the property and has a range of available amenities.”
Washer, Director of Industrial at Colliers, says industrial property remains in demand among investors and occupiers across Auckland given the enduring fundamentals of the asset class.
“The latest research from Colliers indicates the overall industrial vacancy rate is 2.8 per cent, a figure that remains low by historical averages and comparable international markets,” Washer says.
“The Manukau and Wiri industrial precinct has a vacancy rate of only 2.1 per cent for prime floorspace, indicating the strength of demand for the subject location and surrounding area.”
- Supplied by Colliers
