Warehouse complex is a 'standout'

NZ Herald

26 May, 2017 05:00 PM3 mins to read

The big warehouse and office property for sale at 2 Freight Place, Airport Oaks. Photo / Supplied

The sale of a big property, on a high-profile corner site in the Airport Oaks industrial precinct, near Auckland International Airport, represents a chance to buy a quality industrial asset in tightly-held market sector.

Encompassing 5270sq m of mostly high-stud warehouse, canopy and office accommodation on 7279sq m of freehold land at 2 Freight Place, on the corner with Richard Pearse Drive, the property is featured in Bayleys' fourth Total Property portfolio publication for 2017 released yesterday.

Generating $559,606 plus GST in net annual rental income, it is being sold through Mike Adams and Dave Stanley in conjunction with Scott Campbell, Bayleys' national director industrial who are marketing it for sale by tender closing at 4pm on Thursday June 29, unless it sells earlier by negotiation.

Built in the early 2000s, the property is occupied by third party logistics provider Online Distribution on a 10-year lease until October 31, 2024 with further rights of renewal though until October 2033.

"This is a standout opportunity for an astute investor to acquire a strongly located industrial facility," says Campbell.

Adams says the property has a main warehouse of 3740sq m with a stud height of 8m to 10.2m and good levels of natural lighting provided by the translucent panel inserts in the long-run metal roofing. The complex includes a further 151sq m of low stud warehousing and two levels of recently refurbished office space totalling 429sq m.

"The building has been well-constructed and maintained with a high ratio of warehousing enhancing its tenancy appeal," says Adams. "It benefits from excellent yard access from both Richard Pearse Drive and Freight Place while a 672sq m canopy enables all-weather loading and unloading and covers all three roller doors which provide internal access. There is also good car parking for 36 vehicles surrounding the building."

The property is one of 11 modern warehouse facilities operated by Online Distribution in Auckland and in Christchurch where its head office is based. "It's a long-established business which is one of the biggest privately-owned logistic companies operating in Christchurch," says Stanley.

"The company also has another Auckland distribution centre in Savill Drive, Otahuhu. It provides over 200 companies ranging from 'start-ups' to multi-national corporations with a wide range of third party logistics services tailored to suit their needs."

The lease on the Airport Oaks property has built in rental growth with bi-annual Consumer Price Index adjustments and a review to market scheduled in 2019.

Stanley says the property is well positioned within the sought-after and expanding Airport Oaks industrial precinct - just one block away from George Bolt Memorial Drive and at the northern end of Richard Pearce Drive close to where it links with Ascot Rd, Kirkbride Rd and the southwestern State Highway 20 motorway.

"Richard Pearse Drive is a major through road to the airport while Freight Drive is a cul de sac providing access to a number of substantial industrial premises. It's a popular location for both tenants and owner-occupiers because of its easy access to the airport and the nearby motorway network which will benefit considerably from the substantial improvements to SH20 and its connections now nearing completion."