Three investments ready in the West

26 Timothy Place, Avondale, sits on a high-profile corner site. Photo / Supplied

Three big West Auckland industrial investment properties, two of which have considerable redevelopment potential, are up for tender as part of Bayleys' latest Total Property portfolio.

The premises used to manufacture Metalbilt industrial and commercial doors for Norfolk Building Products at 26 Timothy Place, Avondale, is being marketed by Chris Upright, of Bayleys Auckland.

The company is a wholly-owned subsidiary of Australian Stock Exchange listed Norfolk Group which recorded group sales of A$744 million in 2009.

Located just off Rosebank Rd, the property with three road frontages, encompasses 4558sq m of land in two titles on a high-profile corner site. It comes with 2561sq m of building space comprising a 1986-built office block and factory with a stud height of six to 9.6 metres. There are two full-length gantry cranes in the factory and the glass cladding allows ample natural light into the premises.

The offices are built over two levels and provide partitioned offices and amenities to a good standard, says Upright. An upgrading of the air-conditioning system has recently been completed on one floor. Externally there is an extensive sealed or concrete parking and yard area.

Norfolk Building Products will take a new five-year lease over the property at a net annual rental income of $261,000. Upright says it is a good passive investment opportunity because of the calibre of the tenant and the location of the property in the popular Rosebank Rd precinct where there is little vacant space.

"It is a sought-after business location because it is the closest industrial precinct to the Auckland CBD and Ports of Auckland and has a good labour catchment area."

In Portage Rd, in nearby New Lynn, a roadfront industrial property with a total land area of 1.3243 hectares offers a redevelopment opportunity. Three industrial sheds totalling 2980sq m are leased to On Track until October this year, with no right of renewal.

The Auckland Academy of Dance occupies a standalone 1712sq m two-level building with apartments on the ground floor and dance studios and offices above. The academy has a lease until January 2012 with one two-year right of renewal

The property is producing total annual rental income of $295,000. Upright says the property would suit an owner occupier or an entrepreneurial investor looking for an opportunity to add value, either of whom would benefit from the initial holding income while they develop plans for the site.

"It has 62 metres of road frontage and comes with a variety of sheds, yards and buildings. This property was once a timber yard and is a big site in a rapidly developing area where new roads and a railway line are currently under development. It's only a few minutes drive from the centre of New Lynn and would suit any type of large operation and could be redeveloped in the future," Upright says.

The third substantial West Auckland industrial property also has redevelopment potential. The multi-building premises at 150 McLeod Rd in Te Atatu houses York Paper Company and is being marketed by Scott Kirk and James Were of Bayleys Auckland.

Tenders on the Timothy Place and Portage Rd properties both close on June 23, if not sold prior. The closing date for tenders on the York Paper, McLeod Rd, property, is June 24.

At 1.317 hectares, the York Paper property is one of the larger industrial sites in the vicinity and with only 25 per cent land coverage there is ample room for development, says Kirk.

The total floor area of the various buildings is about 3363sq m and includes factory space and modern offices through to an engineering workshop and various storage spaces.

The property is producing net annual rental income of $248,000 and York Paper will take a leaseback over the site for an initial five years, with the rights to renew until 2021.

York Paper was founded over 50 years ago as an associate company of Universal Pyrotechnics Ltd, the foremost manufacturer of retail and display fireworks in New Zealand which operated from the site. York Paper initially provided printed packaging for the fireworks operation.

Since then the company has become a leading printing company specialising in high quality flexographic, reel-to-reel printing for the packaging industry. Downstream activities include printed paper and plastic bag manufacturing plus gift-wrap paper and polyfilm production.

The property is about two kilometres northeast of the main Henderson commercial centre and a short drive from the Te Atatu interchange of the Northwestern Motorway.

James Were says the site has the potential for future residential uses given Te Atatu's popularity with home buyers. Land to the east and north has been redeveloped into a multi-unit residential development while the western boundary also adjoins the surrounding residential property.