A split-risk investment opportunity in Waiuku that is underpinned by two tenants signed to long-term leases will pique the interest of buyers looking for a property with rental growth and future development potential.
Sitting at 6 Hosking Place, Waiuku, the property has 4,405sq m of total floor area on a substantial 13,400sq m freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
Prominently positioned adjacent to Waiuku’s new Fernleigh Industrial Park, the property is tenanted by Hornell Industries and Apex Greenhouses.
The total annual rental income from the tenants is $537,000 plus GST and operating expenses. Hornell Industries is a well-established tenant at the location and has been there for over 15 years; their lease has a final expiry of September 2031.
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Apex Greenhouses, who have been on-site for over 20 years, recently commenced a new lease at the property on a four-year term. With multiple rights of renewal available, the final expiry on their lease is July 2041.
The property features expansive concrete hardstanding, parking areas, and additional yard space that is currently being used by Apex Greenhouses.
Waiuku has a population of approximately 10,000 people and is part of the Franklin Ward, the southernmost ward in the Auckland region.
State Highway 1 is approximately 25 minutes from the subject property and Auckland CBD can be reached in under an hour.
Colliers Brokers Ben Jamieson, Mitch Broderson, and Logan Roach have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 20 August, unless sold prior.
Hornell Industries leases a 1,651sq m factory that offers access via three high stud roller doors and features a double 5 tonne gantry crane, which runs the length of the building.
They also have access to 3,055sq m of sealed yard area. Their lease provides $210,000 plus GST and operating expenses in annual rental income.
Apex Greenhouses tenants an office and factory building that spans 2,674sq m and includes a 900sq m workshop and a main factory covering 1,395sq m.
There is also a 5 tonne gantry crane which travels the full depth of the building. The lease of Apex Greenhouses returns $327,000 plus GST and operating expenses in annual rental income.
Jamieson, Associate Director of Investment Sales at Colliers, says this is a desirable split-risk investment opportunity that is equipped with key fundamentals.
“This offering benefits from having two tenants that are well-known local firms.
"Apex Greenhouses has a long history in business and recent overseas investment has seen them boost their production capabilities.
"Meanwhile, Hornell Industries is a family-owned steel fabrication specialist that was founded in Waiuku and has been in operation since 1968,” Jamieson says.
“Alternating rent reviews from the existing tenants will also provide the new owner with future rental growth opportunities.”
Broderson, Director of Industrial at Colliers, says Waiuku is a growing location that will benefit from ongoing infrastructure investment.
“Significant commercial and industrial developments in the surrounding area will provide a boost to the commercial growth of Waiuku,” Broderson says.
“The Waiuku town centre can be reached in a few minutes and provides access to a range of key amenities, while Pukekohe is approximately 15 minutes away and offers a broad array of services.”
Roach, Investment Sales Broker at Colliers, says buyers with a long-term view may also explore development opportunities down the line.
“The low site coverage offers the chance to intensify the usage of the landholding and maximise its true value through repositioning or further construction at the property,” Roach says.
- Supplied by Colliers
