As commercial property investors continue to seek purchasing opportunities that provide steady cashflow from assets underpinned by a strong tenant covenant, a prominent facility in Papakura’s rapidly evolving industrial hub stands out from the crowd.
Located at 98 Hunua Road, the property has 11,817sq m of net lettable area on a 19,500sq m freehold site.
Developed circa 2022, the purpose-built property is presented in near-new condition and has been configured to accommodate modern industrial requirements.
The asset is tenanted by a nationally renowned operator and on settlement, they will begin a 12-year lease that provides $3,039,010 plus GST in net annual rental income. There are also three rights of renewal available for four years each.
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With motorway access approximately five minutes away, the property offers convenient access to the wider Auckland region. Ongoing infrastructure and roading upgrades around Papakura add to the location’s connectivity.
The property is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan, which supports a broad range of industrial activities and underpins long-term occupier demand.
Colliers Directors Mitch Broderson, Edward Washer, and Greg Goldfinch have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 28 May, unless sold prior.
Broderson, Director of Industrial at Colliers, says the property incorporates a 10,512sq m high stud warehouse that is supported by ground floor amenities and mezzanine office space.
“It is complemented by 1,121sq m of office space that is spread over two levels and provides clear separation between office and warehouse operations,” Broderson says.
“The facility is further enhanced by significant lifting capacity, incorporating six 20t and four 12.5t gantry cranes. These cranes are purpose-designed for the building and represent a material capital investment for the site.
“Extensive concrete yard areas provide for efficient circulation and operational functionality. There are also 121 on-site car parks.”
Washer, Director of Industrial at Colliers, says this is a compelling investment opportunity with a significant income stream that is underpinned by a blue-chip tenant.
“This modern industrial facility offers high levels of functionality and has been specifically designed for the needs of the current tenant,” Washer says.
“They have outlined their commitment to the property with a triple net lease agreement that will begin on settlement and there is built-in rental growth that will be appealing to buyers. As well as the 3 per cent annual increases, there is a market review after six years and at each renewal.”
Auckland sits at the top of New Zealand’s economic ‘Golden Triangle’ and this property’s connectivity to key transport links makes the growing cities of Hamilton and Tauranga highly accessible.
Goldfinch, National Director of Industrial at Colliers, says the location of the property makes it well positioned to capitalise on the continued sprawl south of Auckland.
“While there has been significant investment in the buildings at this site, there are multiple new developments taking shape in the surrounding area, underscoring the demand for the Papakura industrial hub,” Goldfinch says.
“To the south of the site, Drury is expanding rapidly with tens of thousands of people forecast to move to the area across the next few decades, which will drive continued commercial and industrial development.”
- Supplied by Colliers
