Investors wishing to purchase industrial property with some scale in the Auckland region are having to extend their traditional search parameters given the shortage of industrially-zoned land and existing stock, and as a result, the South Auckland market is attracting significant attention from well-resourced buyers.
286-288 Great South Road, 45-47 and 49 Tironui Road, Takanini
In Takanini, a fully-tenanted property comprising four buildings spread across a 5,888sqm site which is held in three titles, has been placed on the market for sale.
With four established and committed tenants, it’s a well-performing split-risk offering with inherent redevelopment potential in the future.
The property is directly opposite PAK’nSAVE and has drive-through access with road frontages to Great South Road and Tironui Road. Combined, the four warehouse-style buildings offer a total of 3,207sqm of lettable space.
Ben Bayley from the Bayleys South Auckland team, Peter Migounoff of Bayleys Papakura and Chris Bayley, Bayleys Auckland Central, are marketing the property which goes to auction at 11am Wednesday, 28th April, unless sold prior.
The industrial asset has been family-owned for more than 40 years.
“The workable credentials of this property – which has enjoyed a fruitful and solid leasing history – are amplified by the intrinsic value of the underlying land given the Auckland region is pretty starved of generously-sized sites,” said Bayley.
“The four tenant businesses are well-settled for the foreseeable future so this is a property that will just tick over for a new owner safe in the knowledge that this is a very desirable landholding.”
The tenants trade as New Zealand Timber Profiles Ltd, Papakura Joinery Limited, Southern Upholstery and Stewart Dance Studios Limited.
The lease terms vary, and, taking rights of renewal into account, the final expiries range from 2026 to 2032.
“The property has a rating value of $5,370,000 and an astute investor will do the sums,” said Bayley.
“It is clear that as an asset class, industrial property’s popularity and performance continues its march onwards.
“Against a backdrop of low interest rates, constrained supply and high demand, the sale price of this property is expected to reflect the lower yields that the industrial market is demonstrating.”
The widespread growth and development being seen in Takanini further underpins the value of the property.
“Auckland Council’s newest community hub, including a library and other community services, recently opened within the Takanini Village shopping centre to support the growing population base and showing a commitment to the area,” said Bayley.
“There is significant residential development occurring through the back of Takanini towards Mill Road, and the Takanini interchange has been upgraded at State Highway 1.”