"The property has strong tenant covenant but is currently under-rented, providing immediate upside for add-value investors. In the longer-term, investors can leverage off ongoing growth in Takanini and the wider South Auckland area.
"Low site coverage of only 21.8 per cent allows for future redevelopment, while a sought-after Business Heavy Industry zoning makes it suitable for a wide range of intensive industrial uses.
"This is a superb opportunity for investors to acquire a solid split-risk industrial asset with ample opportunity to maximise the potential of their investment."
West says the 22,106sq m property comprises a large, secure yard and 4813sq m of warehouse and office buildings.
"The property returns $564,262 plus GST in net annual rental income from three high-quality tenants," he says.
"The head tenant is Steltech Structural Limited, a wholly owned subsidiary of New Zealand Steel. The company, which specialises in manufacturing optimised steel beams, occupies the front warehouse building."
Steltech is signed to a six-year lease earning $382,492 plus GST in net annual rent. Three rights of renewal of five years each extend the lease to a final expiry date of 30 June 2036.
Celtic Transport Group Limited, a privately held company that acquires and develops mid-sized transport operations, occupies 10,118sq m of the sealed yard.
The company is signed to a four-year lease returning $151,770 plus GST in net annual rent. Two rights of renewal of two years each extend the lease to May 31, 2025.
Part of Celtic's tenancy is sublet to Fulton Hogan Limited, which is among the largest infrastructure, civil construction, roading and aggregates companies in New Zealand.
Integrated Maintenance Group Limited — a privately held company that is a major local provider of heavy industrial maintenance, fabrication and construction services — occupies 197sq m of the property.
The company is signed to a six-year lease returning $30,000 plus GST in net annual rent. Three rights of renewal of five years each extend the full lease term to June 29, 2036.
Hooper says the property is nearly triangular in shape, with its industrial buildings situated at the front and large yard to the rear.
"The buildings comprise two warehouse bays with associated offices and amenities over two levels. The original factory was built in 1984, the front offices in 1985 and a factory addition in 1988.
"The functional warehouses are medium stud, clear-span and suitable for a wide range of business uses. Access is via roller doors at both the northern and southern ends.
"The offices provide both partitioned offices and open-plan space, as well as amenities."
Hooper says the property fronts Spartan Rd to the east of the North Island's main trunk rail line.
"Spartan Rd connects directly with Great South Road, one of Auckland's main arterial routes, which provides access to SH1.
"The site has massive profile and is easily visible from SH1, particularly to southbound traffic."
Hooper says Takanini is a well-established industrial and commercial location about 28km from Auckland's CBD, 16km from Auckland International Airport, and about 8km from the Wiri Inland Port.
"The Takanini area was a secondary location for industrial users but tremendous growth in Auckland and the wider 'Golden Triangle' have made it a much more attractive proposition.
"Recent developments have brought new amenity to the area, including large retailers Pak'n Save and The Warehouse.
"The Takanini industrial precinct is conveniently close to a number of labour pools, including residential Takanini, Papakura and Conifer Grove.
"The location is only 10km north of Drury, which is earmarked for substantial residential and industrial development.
"It is also an hour north of Hamilton, where a growing number of Auckland employees are now choosing to live due to the more affordable housing."
West says opportunities to acquire under-rented, under-developed sites are uncommon in Auckland's industrial market.
