A prominent building on a high-profile corner site in the sought-after industrial hub of Penrose in Auckland is being offered to the market for sale and presents buyers with the opportunity to acquire a modern, high-specification asset.
Sitting in a prime position at 894 Great South Road, Penrose, the multi-level property has 2,470sq m of net lettable area on a 2,585sq m freehold site.
The building is tenanted by specialty craft store The Ribbon Rose who have an eight-year lease that runs until 2031 and there is one right of renewal available for six years leading to a final expiry of 30 April 2037.
The total annual rental income from the property is $551,668 plus GST and operating expenses while the lease agreement includes 3 per cent annual increases and a market review on renewal.
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The property has 23 dedicated parking spaces offering convenience for customers. Great South Road is one of the suburb’s main arterial routes and experiences high volumes of traffic.
Penrose has long been recognised as one of Auckland’s premier industrial locations due to its connectivity to the motorway network, proximity to the airport, and links to rail services.
The property is zoned Business – Heavy Industry Zone with consented retail use rights under the Auckland Unitary Plan.
Colliers Directors Gawan Bakshi and Hamish West 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 highly functional facility was completed in 2020 and includes showroom, office, and warehouse space. The warehouse space is currently utilised effectively by the tenant to support their multi-channel retail and distribution operations.
Bakshi, Associate Director of Investment Sales at Colliers, says this is a compelling bottom drawer investment opportunity that is underpinned by key fundamentals that will be appealing to prospective purchasers.
“With an established tenant in place, the property generates a steady rental stream. The current occupant has shown a long-term commitment to the location through the length of their existing lease,” Bakshi says.
“The lease agreement also provides the built-in rental growth that is coveted by discerning investors, making this a property that warrants serious consideration.”
Aside from its access to the surrounding motorway network, Penrose is also well served by transport options through Auckland’s train service and multiple bus routes that offer connectivity around the city.
West, Director of Industrial at Colliers, says the demand for high-quality properties in Penrose remains strong among buyers owing to the suburb’s reputation as a well-established industrial hub.
“The area is home to a wide variety of occupiers, from major multinational brands to dynamic local businesses, who are attracted to Penrose’s logistical advantages and strong array of amenities that include cafes, gyms, and other commercial services,” West says.
“The subject property has a number of attractive selling points such as its prominent location and modern construction that is supported by a tenant on a long-term lease.”
- Supplied by Colliers
