Stonedon site corners market

The tenants at Neilpark Drive are committed to a four-year lease.

Two tenanted East Tamaki industrial properties, an underdeveloped site in Stonedon Drive and a food processing facility in Neilpark Drive, will go under the hammer next month as part of Bayleys' Greater Auckland portfolio.

The larger of the two offerings is a 4012sq m site at 39-41 Stonedon Drive with a 644sq m warehouse plus 128sq m of office.

"This offering provides an opportunity to purchase a well-located East Tamaki property on a corner site, with a modern warehouse and factory facility, that is on two titles and has only around 17 per cent site coverage," says Simon Andrews of Bayleys East Tamaki office, who is marketing the property with colleague Dave Stanley. It will be auctioned on May 14, unless it sells before that date.

"At one end of the site is a well-constructed high-stud, clear-span warehouse built mainly of tilt slab concrete panels with four roller doors and tidy upstairs and downstairs offices. The entire property is security fenced and gated and has good facilities for storing, loading and unloading large vehicles or containers."

The property is owned and occupied by transportation company Multi-Trans, which specialises in heavy haulage and oversized loads.

The company is intending to relocate but will continue to occupy the premises on a two-year lease from June 2014, with no rights of renewal, which will produce net annual rental income of $95,000 per annum.

"The site has worked well for them but they are looking to release some capital to reinvest in their business and would be happy to negotiate their lease back term with a new owner to fit in with their requirements," says Andrews.

"This presents a great opportunity for an owner-occupier - perhaps another business that also requires a large amount of yard area - or an add-value investor or developer who could make the most of a big opportunity to redevelop the property more intensively.

"The fact that the site encompasses two similar-sized titles of around 2000 square metres each increases its development appeal, as does its sweeping circular shape that gives a high level of street exposure which offers a good profile for tenants."

Stonedon Drive links with Cryers Drive, which in turn links with Highbrook Drive, and is about five to 10 minutes from the Highbrook business park precinct and motorway connections to the Auckland CBD and airport.

The property has a Business 5 zoning which Stanley says allows for light and medium intensity industrial activities, offices and a limited range of retailing activity.

Also for auction on the same day is a 249sq m industrial unit at 22A Neilpark Drive, East Tamaki, occupied by a food-processing business.

This is being marketed by Roy Rudolph, Katie Wu and John Bolton of Bayleys East Tamaki office.

Authentic Food Limited, trading as Leanne's Kitchen, has been in occupation since 2007 and the new owners of the business, who have committed to a new four-year lease, are paying an annual rent of $62,333 net of outgoings and GST.

"This is a well-established and well-known food business which has committed to a longer-term lease to secure its position in this property," says Rudolph. "It produces Asian dumplings and has contracts in place with the two major supermarket chains and markets its products elsewhere as well."

Rudolph says the property is expected to sell at a relatively high yield compared with many other recent tenanted investment sales given the specialised nature of the premises and its tenancy, making it very attractive to smaller investors.

The building is the road-front unit of a three-unit development and comprises 172sq m of processing space and warehousing, chillers and freezers totalling about 58sq m, and 63sq m of offices and amenities.

Katie Wu says Neilpark Drive is an established industrial area in the heart of East Tamaki.

"This locality has substantial warehouses occupied by high-profile companies mixed in among a number of medium and smaller sized tenancies.