E. Tamaki industrial park leases
Larger sites of this type are increasingly scarce across Auckland and demand for developed industrial property is expected to remain strong.
Damon Wyllie
Savills is promoting a state of the art warehouse and office space in an industrial park being developed in East Tamaki. Industrial brokers Damon Wyllie and David Arlidge say the development, on a 4ha site at 27 Smales Rd, has good options for tenants.
The owner is Synergy Properties — fronted by directors Martyn and Aaron Brown — is developing the site at Highbrook Business Park, says Wyllie.
Once completed, it will add some 22,000sq m of warehouse and office space to the supply-starved East Tamaki industrial market, he says.
“Given the restricted supply of industrial space in Auckland, especially in centrally-located precincts such as East Tamaki, we’re expecting fairly rapid uptake,” says Wyllie.
“Larger sites of this type are increasingly scarce across Auckland and demand for developed industrial property is expected to remain strong with vacancy extremely low.
“East Tamaki’s central location and transport links makes it among the most highly sought-after industrial areas in Auckland. This means fewer options becoming available to businesses looking to move.”
Arlidge says the project at 27 Smales industrial estate is the experienced highly developer’s largest one to date, with an estimated end value of over $70m, Arlidge says.
Synergy is constructing a range of building sizes — units suited to smallto-medium sized enterprises, right through to large, high-stud warehouse and office facilities.
“There is going to be something here for a wide variety of industrial property occupiers.
“It will be a compelling proposition for businesses wanting to upgrade to new premises, yet still be located within easy reach of city centre and the airport,” says Arlidge.
Construction is under way on Stage 1, which is to 9000sq m of buildings. These are to include a large
3565sq m warehouse and office facility; five smaller warehouse units of
767sq m to 1118sq m in size, and a cafe. Stage 1 is expected to be ready to occupy by the middle of next year).
Stage 2, which is to add a further 13,000sq m of buildings to the development, will give companies looking for a turn-key design build solution the option to lease a purposebuilt facility on the western side of the site.
Arlidge says once complete, the development will have three vehicle access points to Smales Rd, with the estate positioned mid-way between two key local arterial routes — Harris Rd and Te Irirangi Dr.
“It will feature an internal dual carriageway, with a large turning circle providing direct access to all the buildings. Entrance to the estate will be fenced and gated with tenant-only access after hours.
“Ample car parking will also be provided,” says Arlidge.
Brown says Synergy purchased the site in June 2015 with a lease-back arrangement in place to the vendor, Fletcher Concrete and Infrastructure.
“We considered the site desirable as a development proposition, based on its excellent location and highdemand area.
“The two-year lease back to Fletchers made the purchase a nobrainer,” he says.
Fletchers operated a Firth concrete plant on the site until October
2017.
Following Fletchers’ departure, Synergy commenced levelled and metalled the site. Ground works for Stage 1 were completed at the end of April this year.
An experienced developer of
20-years-standing, Synergy Properties owns the properties it develops for the long term, says Brown.
“This strategy allows the group to develop with the future in mind, instead of tomorrow’s profit margin. Synergy has a long history of developing office and warehouse facilities and they understand the key factors that make these buildings work to optimal efficiency,” says Arlidge.
The development at 27 Smales Rd will feature high-strength warehouse floors, extra-wide roller doors and high cubic capacity within the warehouses.
“Each building, even the smaller units, will also have a dedicated hardstand yard area to accommodate
40-foot containers and vehicle movements.
“We have also taken care to design the development in a way that facilitates easy access for trucks.”
Synergy’s developments have traditionally been in the industrial sector, but the group has also delivered retail and showroom properties.
These include the 6,500sq m Home Base Botany centre; office blocks including 7a Pacific Rise, Mt Wellington (occupied by Asure Quality) and a Motorlodge hotel in Rotorua, trading as Regal Palms.