"This is the perfect split-risk industrial investment opportunity in a proven location with multiple tenants providing security and a good mix of occupiers and industries," Johnston adds.
"This property has quality tenants including Healthcare of New Zealand and Fresh to Go. Healthcare of New Zealand has been providing in-home services for nearly 30 years to over 20,000 New Zealand families. Fresh to Go is a very successful family business that provides made-to-order salads to supermarkets, cafes and hospitals throughout New Zealand," says Jarvie.
Penrose is earmarked for Auckland Transport's proposed East West Connections, the Government programme aimed at improving freight efficiency, commuter travel, and public transport. The projects will focus on connectivity and ease of transport between Onehunga, East Tamaki, and Auckland Airport over the next 30 years.
"The Onehunga-Penrose area generates a staggering $5 billion per year, and contributes 8 per cent of Auckland's gross domestic product. There are 64,000 people are employed there and it sees the movements of 6000 heavy vehicles per day just along Church St," says Jarvie.
"The programme includes two priority projects currently under way, one of which is improving transport and freight connections between Onehunga and Mt Wellington.
"This will be a game-changer in respect to Penrose's strategic locality and desirability as an industrial precinct," says Goldfinch.
It is currently proposed that Hugo Johnston Drive will connect directly to the new expressway via an interchange.
"Travel times and travel time reliability between businesses in the Onehunga-Penrose industrial area and SH1 and SH20 will be significantly improved, as will be connections in and out of Onehunga-Penrose, and the reliability of public transport between Mangere, Otahuhu and Sylvia Park," says Goldfinch.
"The programme will identify the area's current and future transport network issues and the funding commitment to improve it. This will ensure the network can continue to support the growing movement of people and goods, and promising to make Penrose properties soar in value and desirability as investment options," Johnston points out.
Penrose is a major industrial hotspot in Auckland. It is desirable for its closeness to the CBD, only 9km away to its southeast; and its access to motorways north and south. Auckland International Airport is only 13km away.
The property is currently zoned Business 6 and will be changed to Heavy Industry once the Unitary Plan becomes operative.
"It's quite rare to get this zoning for an industrial property in South Auckland that allows for a wide range of industry and in a market that is increasingly tight and experiencing a severe shortage of available land," says Johnston.
The proposed zoning permits development of up to 20m, which reduces the areas close to residential and public open space zones. This zone will accommodate sites that are large enough to house large-scale low intensity industrial activities, with smaller sites discouraged.
