A significant freehold industrial estate in the heart of Penrose in Auckland is being presented to the market for sale and will appeal to institutional investors, private capital, and developers seeking a site of scale with contracted income and future upside.
The property, located at 345 Neilson Street, comprises three warehouse buildings, a stand-alone three-level office, and an extensive sealed yard that is tenanted by established industrial and logistics operators and a professional services firm.
There is 17,779sq m of total net lettable area across the improvements, which sit on a 68,359sq m landholding. The estate generates $3.97 million in net passing rental income with fixed 2.5 per cent annual uplifts and tenant renewal uplifts that, if exercised, extend to 2033-2034.
Penrose is considered one of Auckland’s premier industrial precincts given its connectivity to the main trunk rail line, the motorway network, and Auckland Airport.
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The property, held by Port of Tauranga Limited, is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.
Colliers Directors Greg Goldfinch and Hamish West have been exclusively appointed to market the property for sale via international expressions of interest closing at 1pm on Tuesday 18 August, unless sold prior.
Built through the 1980s and 1990s, the three sprinklered warehouses feature medium stud heights, multiple roller doors, and full height steel cladding.
Trade Depot, one of New Zealand’s largest online-led retailers, is the anchor tenant at the property, accounting for approximately 77 per cent of the rental income. They occupy all three major warehouses and 4,207sq m of yard space.
The three-level office building was recently refurbished and is tenanted by Martinus Rail NZ Limited and Neilsons Lawyers.
The other tenants at the property include Qube, who lease 1.03ha of yard for container storage, ACFS Port Logistics, who utilise space for truck parking, and Coda Group who lease 30 car parks.
Sealed yard and vehicle access serve the site, including a 10,300sq m hardstand in the south-eastern corner.
Goldfinch, National Director of Industrial at Colliers, says there are multiple investment considerations for prospective purchasers.
“A majority of the current lease terms run into next year but there are renewals available so the asset’s central value-add lever is to retain the existing tenants to maintain a significant rental stream or recover a considerable amount of space to reposition the property,” Goldfinch says.
“The anchor tenant, Trade Depot, is a well-known national firm that utilises this Penrose estate as a core Auckland warehousing, fulfilment, and trade-counter base. Trade Depot specialises in the sale of appliances and furniture alongside bathroom and building products through a direct import model that pairs ecommerce with large format distribution.
“The holding also offers approximately 1.6ha of redevelopment land, of which around 6,500sq m is currently unused. The Business – Heavy Industry zoning provides for the broadest range of activities and highest intensity of operations, giving owners and occupiers genuine operational flexibility for the future.”
The property sits immediately adjacent to MetroPort, the Port of Tauranga inland port that links Auckland by rail to the Port of Tauranga.
Recent research from Colliers indicates the enduring strength of demand for industrial space in Penrose as the Penrose/Onehunga industrial corridor has a vacancy rate of only 1.4 per cent for prime floorspace.
The overall vacancy rate for industrial property across the city is 2.8 per cent, a figure that remains low by historical standards.
West, Director of Industrial at Colliers, says the location of the property is a major advantage.
“This strategic location, adjacent to the inland port, translates into ongoing tenant demand, supply chain efficiency, and long-term locational resilience,” West says.
“Landholdings of this scale are rarely found on the open market in a sought-after area such as Penrose, a suburb that is one of Auckland’s key industrial hubs and is home to a number of well-known firms.
“This property gives purchasers the opportunity to acquire an asset with immediate cashflow and future potential and represents one of the most substantial industrial offerings that will be presented to the market this year.”
- Supplied by Colliers
