Top spot, income all part of package

42 Vestey Drive, Mt Wellington. Photo / Supplied

A 2956sq m warehouse and office building at 42 Vestey Drive, in Mt Wellington's industrial precinct, is being marketed for sale by deadline private treaty closing on Thursday, November 3, unless sold prior, by Paul Higgins and Hamish West of Colliers International.

Higgins says the property, owned by a trust, is a well-presented industrial asset in a prime location that comes with the benefit of $439,000 in annual holding income until the end of next year.

"Vestey Drive is one of the most desirable addresses an industrial business can have in Auckland," Higgins says. "It's a well-known location that rarely has any vacancy.

"Rental income on the property is locked in until December 2012, giving an owner-occupier or add-value investor the opportunity to extend or modify the facility before taking occupation."

The principal tenant, SPX Flow Technology New Zealand, has already vacated the premises in order to move to another facility. However, the lease runs until December 2012.

West says SPX has sub-leased the entire first-floor office area of some 850sq m, as well as 25 on-site car parks, to the Youth Horizons Trust, which contributes $157,000 in annual net rent.

"The Youth Horizons Trust has signed a lease expiring at the end of November 2012, however they have indicated that the premises suit their needs very well and they would be happy to sign a new lease in order to remain there," West says.

"The property offers an investor the opportunity to buy a well-located facility which could easily be let to two tenants, spreading the income risk. The vacant warehouse and remaining 300 to 400sq m of office space - depending on a final configuration - would be highly leasable due to its prime location and well-presented facilities."

The building was constructed in 1995 and provides versatile warehouse and office accommodation with drive-around vehicle access.

The 1442sq m warehouse has five roller doors, giving good road transport access, as well as external canopy areas and internal mezzanines. It features a high stud of 6m at the portal knee, rising to 7.4m at the apex. The offices, which face Vestey Drive, are well presented and make up a total floor area of 1334sq m over two levels.

Higgins says the large site offers expansion potential which investors with an eye for upside could exploit.

"There is plenty of yard space which could be built on, and a concrete pad of around 300sq m has already been added to the yard at the western side of the warehouse, allowing a building to be erected quickly."

Higgins adds that the efficiency of the warehouse space could be increased with the removal or reduction of the mezzanine areas.

West says 42 Vestey Drive is the only building on the street which has a vacancy. "This is due to Vestey Drive's excellent transport links and location only 10 minutes' drive from the Auckland CBD. The property is located very close to Mt Wellington Highway and the Sylvia Park commercial hub. On- and off-ramps to the Southern Motorway are only one minute away.

"Mt Wellington is considered one of Auckland's prime industrial precincts and is popular with importers and distributors due to its central location midway between Auckland's CBD and Ports of Auckland and the international airport.

"It is a very tightly held area, so properties generally get snapped up quickly."