New build with motor vehicle tenants for sale
A newly developed, split-risk investment property with three established motor vehicle industry tenants is for sale in a fast-growing West Auckland location.
The 1.1ha freehold property, at 156 Central Park Rd, Henderson, is home to the West Auckland dealerships of Volkswagen, Hyundai and Isuzu.
It is on a corner site opposite furniture and homeware retailer Nido, which will be the largest single retailer store in New Zealand upon completion this year.
Colliers International has been appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday, April 1, unless sold earlier.
Gareth Fraser, Auckland director of investment sales at Colliers, says it is a true trophy investment with scope to add further value. “This is a chance to invest in a newly developed property with quality, high-spec improvements and very strong tenant covenants.
“It comprises two recently completed vehicle dealership premises, leased to Auckland Vehicles and Tristram European, and a sealed vehicle storage yard leased to Winger Motors.
“The tenants provide a long weighted average lease term of 5.5 years, backed by strong guarantees on each of the leases. The property returns $975,295 plus GST in combined net annual rent, providing a solid passive income flow for investors.
“With low site coverage, there is also an opportunity to grow the property’s income in future by developing the surplus yard space. All in all, this is an outstanding opportunity to acquire a bottom-drawer investment with future upside potential.”
Josh Coburn, West Auckland director at Colliers, says the property is well situated in a prime Henderson location. “It is a short distance from the main arterial of Lincoln Rd, which has been identified by Auckland Council as a key growth corridor.
“The property is also only 750m from the State Highway 16 interchange at Lincoln Rd, putting it within 15km of Auckland’s CBD and providing a link to Auckland airport via the Waterview Tunnel.
“A number of significant trade retail, office and industrial businesses are within this tightly held area. The immediate locale is set to become a major retail destination when Nido’s flagship 27,000sq m furniture and homeware store is completed this year. The store will offer flatpack furniture from more than 80 brands, providing some 10,000 products.”
The property at 156 Central Park Dr is split into three different sites on separate leases.
Site 1 consists of a 1359sq m building on 4129sq m at the corner of Central Park Dr and Soljan Dr. Built in 2017, the improvements include a 566sq m showroom, 117sq m mezzanine and 676sq m workshop. There are also 53 car parks on-site.
Auckland Vehicles Ltd, trading as Isuzu and Hyundai West Auckland, occupies the site on a 10-year lease with seven years remaining. The lease returns $321,918.79 in net annual rent. Rental reviews are every two years to CPI, with market rental reviews every five years.
Site 2 comprises a 1525sq m building on 3585sq m with frontage to Soljan Dr. Caroline Cornish, West Auckland broker at Colliers, says the property was built for Tristram European Ltd, trading as Volkswagen, to meet VW’s international specifications.
“Completed this year, the developer has delivered a fully fitted showroom, workshop and yard including all services, finishes, fittings, landscaping and infrastructure, including capacity for future EV chargers in the yard.”
With 454sq m of showroom, 334sq m of mezzanine and office space and a 775sq m workshop, this site also provides 50 car parks.
The property is on a five-year lease returning $488,875.82 plus GST, with one right of renewal of a further five years. Rental reviews are to CPI every year, with a market review on renewal.
Site 3 comprises a sealed yard, currently used for car storage, on 3,366sq m. It is tenanted by Winger Motors Ltd on a new five-year lease with a five-year right of renewal, returning $164,500.42 in net annual rent. This lease also allows for annual CPI rent reviews and a market review on renewal.
The lease also includes options for both the landlord or the tenant to further develop the site. The property is zoned Business Light Industry, which allows for a range of uses including manufacturing, distribution, and some showroom and trade retail uses.