One of the largest freehold sites in the popular industrial hub of Penrose in Auckland is being offered to the market for sale, presenting buyers with a significant development opportunity.
Located at 39 Hugo Johnston Drive, the property has 70,579sq m of total land area on a site that is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.
The property, which is held on one title, has long been used as a paper mill by Oji Fibre Solutions and currently has eight buildings with approximately 14,024sq m of total net lettable area. The company has confirmed their plant will close leading to this property being brought to market.
From settlement there will be a leaseback in place to Oji Fibre Solutions of six to eighteen months staggered between two parts of the site. The annual rental will be five per cent of the purchase price meaning there will be holding income in place while the new owner masterplans the redevelopment of this large-scale property.
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The subject location is only a few minutes from the motorway network, while Auckland Airport is 13km away. Penrose benefits from its proximity to nearby industrial precincts in Onehunga, Mount Wellington, and East T?maki where a vast number of well-known commercial firms are based.
There is also a long list of surrounding amenities, including retail and hospitality options at Sylvia Park, which can be reached in less than 10 minutes.
Greg Goldfinch, National Director of Industrial at Colliers, and Jonty Lamb, Head of Industrial Advisory for Australia and New Zealand for Colliers, have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 11 June, unless sold prior.
The central structure at the property features a two-level office and a manufacturing warehouse, with various units attached around its perimeter.
Additionally, three separate buildings are located along the western and eastern boundaries of the site. There is also 5,300sq m of useable yard. Access to the site is provided via a shared entrance on Hugo Johnston Drive.
Goldfinch says a landholding of this size in Penrose has not been presented to the open market in nearly two decades, indicating how rare this offering is.
“Penrose is one of the most sought-after industrial locations in Auckland due to its connection to the surrounding transport infrastructure, including State Highway 1 and
20 and MetroPort Auckland. Acquiring an asset like this will be a business-defining move that will chart the future direction of an organisation,” Goldfinch says.
“This property will hold major appeal for developers who may wish to purchase it and create a development they can tenant to capitalise on the ongoing demand for industrial space in Auckland.
“The holding income will provide flexibility for the new owner to strategically plan their future moves.”
Industrial property remains in short supply across the Auckland region and the most recent research from Colliers highlights a vacancy rate of only 1.5 per cent for prime industrial space in the Penrose/Onehunga hub. The overall vacancy rate for industrial property in Auckland is 2.2 per cent.
Lamb says having the opportunity to purchase a redevelopment site of this scale within a core Auckland industrial precinct will attract both domestic and international interest.
“For owner-occupiers, the chance to secure land within a strategic location to design, develop, and occupy new premises, will deliver long-term benefits and good capital growth opportunities for their business. There are also additional benefits of utilising the existing rail infrastructure that enters the site, adding huge value for intermodal type opportunities,” Lamb says.
“This offering’s strategic location, scale, and redevelopment potential underpin the opportunity to acquire a property within one of Auckland’s most keenly sought industrial precincts.”
The Heavy Industry zoning provides opportunities for industrial uses or activities that may produce objectionable odour, dust, and noise emissions.
- Supplied by Colliers
