Mattress warehouse has a ‘comfy lease’
Asubstantial warehouse and office investment on a 1.2ha site in Auckland’s soughtafter Wiri industrial precinct is for sale through Colliers International.
Tenanted by Australasian mattress manufacturer A.H. Beard, the freehold property at 260 Roscommon Rd is on a 10-year lease returning $507,896 net in net annual rent.
Colliers International Industrial Sales and Leasing directors Brad Johnston, Dwayne Warby and Greg Goldfinch are marketing the property for sale by deadline private treaty.
Offers on the property — featured in the latest Colliers Portfolio, released yesterday — close at 4pm on Wednesday May 29, unless sold earlier.
Johnston says investors are being offered the opportunity to acquire a top-tier industrial property with excellent fundamentals.
“Located on a high-profile site the property at 260 Roscommon Rd in Wiri has an enviable mix of attributes,” he says.
“Easy drive-around access and a low office to warehouse ratio ensure this versatile property is well-suited to a range of industrial users, from manufacturing to logistics.
“Strong tenant covenant and a long-term lease make this a tidy investment, while the property’s substantial size and 42 per cent site coverage make it suitable for future redevelopment.”
Johnston says Auckland’s industrial market continues to go from strength to strength, with the prime vacancy rate at a low 1.5 per cent, and rents continuing to rise.
“Top-notch properties in good locations remain tightly held,” he says.
“There simply isn’t enough stock to satisfy investor demand, leading to a 35.5 per cent drop in transaction volumes last year to $1.07 billion, down from $1.66 billion in 2016.
“Against this competitive backdrop, properties with exceptional fundamentals remain at the top of investors’ wish lists, making 260 Roscommon Road an astute buy.”
Warby says the property has a net lettable area of 5023sq m, comprised of a generous warehouse and adjoining single-storey office.
“The 4517sq m warehouse is an L-shaped structure in a double-bay configuration, with two openings providing access between the bays,” he says.
“The main warehouse bay has a 6.4m stud height at the apex, with two rows of internal supporting columns. Access is via multiple roller doors at each end of the building.
“The second warehouse bay has a stud height of 5.6m at the apex. It includes a small office and amenity area with a mezzanine above, which is accessed by an internal set of stairs.”
Warby says the 505sq m main office fronts Roscommon Rd.
“This well-presented area features a mix of open plan space and partitioned offices, as well as a staff kitchenette and amenities.”
The building is positioned in the middle of the substantial 11,903sq m site, ensuring the property has full drive-around capabilities.
“The remainder of the secure site features sealed asphalt allowing for effortless vehicle maneuverability and plenty of room for car parking.”
Goldfinch says the property enjoys excellent profile to busy Roscommon Rd — one of Wiri’s main arterial routes.
“Wiri is one of the fastest-growing industrial areas in New Zealand and is the base for many of the country’s largest and most successful companies,” he says.
“The area is widely considered to be one of Auckland’s premier industrial and business districts, thanks to its excellent amenity and infrastructure.
“The property is within 3km of the State Highway 20 interchange, which provides a direct link to SH1 and the west via the Waterview Tunnel and SH16.
“Nearby infrastructure includes the Ports of Auckland’s Wiri Inland Port and Auckland International Airport, which is only 9km away.”
Goldfinch says the area draws on a large pool of labour from surrounding suburbs and is well served by public transport, with the Puhinui Rd train station within walking distance of Roscommon Rd.
The property for sale is zoned Light Industry, which allows for a range of uses that do not generate objectionable odour, dust or noise emissions.
This includes light manufacturing, production, logistics, storage, transport and distribution activities.
More than five years remain on the property’s 10-year lease, which commenced in October 2013.
A single five-year right of renewal extends the lease until October 2028.
Goldfinch says tenant A.H. Beard is one of Australasia’s leading manufacturers of quality mattresses and bedding.
“The company was established in Australia in 1899 and remains in family ownership,” he says.
Local stockists include Harvey Norman, Bedstop and Furniture City, among others.
Hesays the property’s long lease, strong tenant covenant and solid fundamentals will appeal to a wide range of investors.