An industrial property in the West Auckland suburb of Henderson is being presented to the market for sale, giving prospective purchasers the opportunity to acquire an asset with an established tenant.
Located at 19-25 Keeling Road, there is 5,117sq m of total building area on a 9,018sq m freehold site. The property is tenanted by the Pact Group, trading as Alto Packaging, and they have occupied the site for more than 40 years.
Alto Packaging’s current 10-year lease term began on 1 April 2023 and there are two further rights of renewal available for six years each, leading to a final expiry of 31 March 2045.
The net annual rental income from the property is $726,332 plus GST and operating expenses and Alto Packaging’s lease agreement includes market rent reviews every three years with the next due in April 2026.
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There are also annual CPI reviews except for the years when market reviews take place.
The property benefits from its prominent road-front position and offers ample on-site car parking. There is also easy truck access via a wide main driveway while there is a large yard at the rear of the site offering space for external storage or container drops.
The property is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
Colliers Brokers Matt Prentice, Shoneet Chand, and Jack Tuson have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Tuesday 2 December, unless sold prior.
The factory at the property measures 4,031sq m with a front office area that spans 474sq m, while the rear office space is 206sq m.
The factory space is split into two main areas with a fully enclosed linking canopy that measures approximately 200sq m; it has external doorways at each end and houses engineering plant equipment. There is also a 206sq m factory mezzanine area.
This stand-alone building has multiple roller doors and is sprinklered throughout.
Prentice, Director of Industrial Sales and Leasing at Colliers, says this is a well-maintained asset with a longstanding tenant that will provide stable cashflow for the new owner.
“The property has a strong tenant covenant and Alto Packaging have been in this location for multiple decades underscoring their commitment to the site,” Prentice says.
“With built-in rental growth, this is an appealing investment opportunity that will pique the interest of discerning purchasers. Our long-term vendor has advised this property is seriously for sale and wants all offers presented.”
Chand, Director of Investment Sales at Colliers, says the Henderson industrial precinct is a sought-after location among tenants and owner-occupiers and has low levels of vacancy.
“The latest research from Colliers notes the Henderson industrial area has a vacancy rate of only 1.6 per cent for prime floorspace, highlighting the ongoing demand in the area,” Chand says.
“Keeling Road is a quiet no-exit street that runs just off Central Park Drive, which provides direct access to Lincoln Road that is home to an array of amenities and leads to the motorway network.”
Tuson, Associate Director of Industrial at Colliers, says this purchasing opportunity provides buyers with an asset that has a desirable combination of attractive investment fundamentals in a high-quality industrial location.
“In the future, there is scope to explore splitting the property to offer two separate tenancies given the broader configuration of the building area, adding another layer of appeal for purchasers.”
- Supplied by Colliers
