Covid-19 is set to change the way New Zealand does business. Self-reliance is vital in these lean times – and small businesses will be looking at how to cut costs to remain viable in the long-term.
Leases make up a substantial percentage of any business’ annual expenditure and, in places like Auckland, these costs can be crippling. However, a new concept in the market will give small business owners, start-ups and artisan producers the opportunity to own the workspace they occupy for a remarkably low price.
Starting at just $295,000, The Foundry is a unique industrial property proposition. Located in Hobsonville, the units will be well-designed, functional, and just a stone’s through from the CBD.
Farhad Moinfar is the director of Citadel Capital, the company behind The Foundry development. He says the 38 freehold industrial units are extremely “sharply priced” and aimed towards investors or owner/occupiers who may not have been able to invest in industrial property before.
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“The Foundry is a compelling proposition in the market, one that’s not previously been delivered,” he says.
The Hobsonville industrial/commercial precinct is set to grow in leaps and bounds over the next few years: “There will be 10,000 to 20,000 new jobs created in this area,” says Moinfar.
Given the potential of the area, the sub $300,000 starting point is even more remarkable. But, as Moinfar explains, the relatively low cost of the units (priced from $295,000 to $500,000 depending on size and specs) is due to its “rational and considered design”.
The units have been designed by BSW Architects, a firm with a track record of excellence in commercial, residential and retail architecture. All units will have 6m-high studs, roller doors and be constructed from concrete tilt slab.
There will be a range of designs and sizes, with larger units having a mezzanine floor that can be used as an office, complete with kitchenette.
At only 15 minutes to the CBD and 20 minutes to the airport (outside peak hours) the location is ideal. Moinfar says the catchment area is central Auckland, North Shore and West Auckland, so it’s a perfect spot for small businesses wanting to sell local.
Moinfar says the industrial centre won’t only appeal to owner-occupiers, it also offers investors the chance to get a foot in the door.
“Many potential investors are unable to get into the industrial property market due to the high costs associated with purchasing. With record low interest rates, we anticipate the return of investment to be around 5-6 per cent for these units.”
Residential real estate in Auckland is still very expensive to purchase; factor in RTA requirements, new tenancy laws and Health Homes standards, and the returns are much lower than this, Moinfar says.
New commercial investors would be able to secure a unit for under $300,000, secure a lease of tenure for three or four years, with the tenancy paying all outgoings.
The Foundry will be completed by the end of 2021 and off-plan sales are happening now. There’s an initial deposit of $5000, with the remainder of the 10 per cent deposit payable in instalments. Final payment is made upon completion.
With such a low initial outlay and over a year until final payment is required, The Foundry is a great option for Kiwi business wanting to get back on their feet after the Covid-19 lockdown.
“You won’t be able to find anything in the market at such a reasonable price,” explains Moinfar. “Anything slightly comparable would be around 10 to 15 years old and far more expensive. It is a completely new concept and we expect interest to be high.”
For all information and to register interest in The Foundry, call 0800 368 6379 or click here.
- This content is sponsored by Citadel Capital Ltd
