Wiri industrial ticks the boxes
A new purpose-designed complex comes with long-lease tenant, reports Colin Taylor
Afreehold industrial building, described as: “ticking all the right boxes as a modern, high quality, new build in an excellent location”, is for sale in the industrial precinct of Wiri, south of Auckland city.
“This purpose-built property will be hard to beat as a stable and hasslefree investment,” says Paul Steele of CBRE who, with colleague Claus Brewer, is marketing 107 McLaughlins Rd for sale by public auction at 11am on Thursday March 15 on Level 14 of the ANZ Centre, 23-29 Albert St, Auckland — unless it sells prior to that date.
Steele says the building complex was specifically designed for New Zealand-owned and operated container specialists Cargo Plus Limited which fully occupies it. “Given the combination of immediate and longer-term income potential, we’re expecting the property will attract strong interest from a range of investors including private individuals, family trusts and larger syndicates,” he says.
“New, high-quality industrial properties that are available for purchase are extremely scarce and prospective tenants have been struggling to find buildings to lease that suit their needs. This one will help to ease a drought in A-grade investment stock over recent months.”
Built by industrial developer Euroclass as part of its Stonehill Business Park estate, and completed in December last year, the building has a net lettable area of 4550sq m and sits on a 6898sq m corner site with dual street connectivity.
Fully fenced, it has drive-through access from McLaughlins Rd on to Stonehill Drive via a 1250sq m breezeway canopy above a concrete yard area.
Steele says the property has an ideal 10 per cent office-to-warehouse ratio. The 3000sq m warehouse is clear-span, with a stud height of about 9.3m at the knee rising to 11.3m at the apex.
Access to the warehouse is via three large roller doors on the northern elevation with sheltered protection from prevailing winds. The offices are set over two 150sq m floors, with outlooks over the yard and views over Manukau Harbour.
With major commercial rail connections to Ports of Auckland and the national railway network, Wiri is an absolute drawcard. Claus Brewer
Steele says the Light Industrial zoned property is tailor-made for freight and logistics tenants.
“With a carefully designed layout and three accessways, the site is geared towards highly efficient devanning and unloading/loading, freight activities. Trucks can roll in, unload, load and move out without any complicated manoeuvring. The container bays are capable of holding up to twenty-five 20-40ft containers so there is plenty of storage.”
Steele says the property earns annual rent of $499,500. “With Cargo Plus signing up for a 10-year lease commencing only last month and with two further rights of renewals; the purchaser will have long-term income with fixed rental increases, providing guaranteed income growth every year throughout the term of the lease.”
The McLaughlins Rd property is close to Auckland Airport and Wiri Inland Port. “It’s on a high-profile corner at the eastern edge of the Stonehill Business Park, in a safe and secure setting with one road in and one road out.”
The site is 2km from the Cavendish Drive interchange on to State Highway 20 giving quick access to the Auckland CBD via the Waterview tunnel and also on to State Highway 1.
From the same interchange, Puhinui Rd provides an alternative route to the Airport. Other high-profile occupiers in the area include The Warehouse, Progressive, Griffins, Foodstuffs, Downer, K-Mart and Goodman Fielder.
Brewer says Stonehill Business Park was created by Euroclass in 2011 and is now 64 per cent complete with the firm undertaking construction on all the vacant sites.
He says being close to the Wiri Inland Port makes 107 McLaughlins Rd a compelling proposition for warehousing and freight tenants.
“With major commercial rail connections to Ports of Auckland and the national railway network, Wiri is an absolute drawcard. With just a 1.2 per cent industrial vacancy across Auckland, Wiri is below the city average. That positive vacancy trend clearly demonstrates a high demand and reflects a net absorption of over 50,000sq m in 2017.”
Brewer says the industrial property market overall is showing strong fundamentals.
“It’s largely driven by a real boom in the freight and logistics industry, with record cargo volumes at the major North Island ports and airports.
“This has led to significant development activity to cater for the growing demand, as seen on a number of fronts.
“Foodstuffs recently announced it’s going to construct a new distribution centre at Auckland Airport, plus a new temperature-controlled distribution centre in Hornby Christchurch.
Tainui Group is looking to subdivide and develop a 48ha site adjacent to its inland port and logistics hub at Ruakura on Hamilton’s eastern boundary.
Brewer believes the freight and logistics boom will continue with the growth of e-commerce and online retailers expected to have an increasing New Zealand presence in the future.
“This will continue to drive the need for freight and logistics hubs and warehouse space,” he says.
“Against this backdrop, properties of the quality and size of 107 McLaughlins Rd are poised to capitalise on a long run of future growth.
“Newly-built and in a prime, connected location; with a long-term tenant and locked-in rental income, this property should prove to be an attractive tenant proposition for decades to come.
“With industrial vacancy at longterm lows, the sale presents a perfect opportunity for investors to secure a position in the market,” Brewer says.