Wairau Valley units with a blank canvas for upside

The 2024sq m property, at 78 Diana Dr, on Auckland's North Shore, is being marketed by Colliers International. Photo / Supplied

Four warehouse units on a freehold site in the Wairau Valley industrial precinct are for sale as a tenanted investment with the opportunity for immediate rental upside.

The 2024sq m property, at 78 Diana Dr, on Auckland's North Shore, is being marketed by Colliers International and is to be auctioned at 2pm on Wednesday, September 11, unless sold earlier.

Colliers Director Matt Prentice says the split-risk asset would be a welcome addition to any portfolio. "Three of the units have long-term leases to longstanding tenants, while the smallest unit has deliberately been left vacant for the sale campaign.

"This bankable investment is currently returning $116,088 in net annual rent, with further upside to come if you decide to lease the vacant unit. Fully tenanted, it is estimated to return $138,588 per annum.

"The vacancy would be a dream to lease, given the strong tenant demand and very low vacancy in the Wairau Valley area."

Colliers director Shoneet Chand says Diana Dr is a busy arterial leading from Wairau Rd to residential Glenfield.

"The property is only 200m from the intersection with Wairau Rd and a further 500m from the Northern Motorway interchange at Tristram Ave.

"This excellent connectivity has helped to make the wider Wairau Valley area one of the most popular light industrial and commercial precincts on the North Shore."

Chand says tenant demand for quality properties in the area remains high. "The latest Colliers International research survey found the North Shore's overall industrial vacancy rate remains below 2 per cent and has barely budged in the last year.

"Wairau Valley is particularly sought after, being home to a range of brands that underpin the area's popularity, including Mitre 10, Bunnings, Tristram European, Supercheap Auto and Repco."

Colliers director Euan Stratton says the property is down an exclusive driveway with generous car parking.

"The units are within a well-positioned L-shaped building with a total net lettable area of 872.1sq m. While the units are slightly different in shape and size, all offer clear-span warehousing with a 4m stud height, plus a small office and amenity area with mezzanine storage above.

"Each unit also benefits from a full-height roller door with a separate pedestrian entry, excellent signage and ample car
parking in excess to that typically found within a development of this nature."

Built in the 1970s and well refurbished, the property has an A-grade seismic rating, being constructed of concrete foundations and floors, concrete block external walls, aluminium joinery and a long-run steel roof.

Light Industry zoning allows for a wide range of activities including manufacturing and distribution.

All three tenanted units are on six-year leases, with two rights of renewal of three years each. Rental reviews are every two years to market.

Unit 1 has a floor area of 208.5sq m and four associated car parks. It is leased by Artifex Flooring Limited at $32,500 in net annual rent, with final expiry in July 2031.

Unit 2 has a 296.3sq m floor area plus six car parks. It is tenanted by Autocolour European (1999) Limited at $42,000, with final expiry in October 2024.

Unit 4 has a floor area of 240sq m and six car parks. It is leased by Leith Glazing 2017 Limited at $38,000, with final expiry in July 2031.

The vacant tenancy, Unit 3, comes with two associated car parks. It has an estimated market rental of $22,500 per annum.

The property also has three additional car parks that are leased to a neighbouring business on a monthly basis, contributing $3,588 to the total annual rent.