Huge site in Henderson offers lots of upside
A large industrial complex in Henderson, leased to an international tenant and providing plenty of scope for future development, has been placed on the market through CBRE.
30-32 and 38-44 Bruce McLaren Rd comprises almost 2.6ha of prime land spread across three titles in the heart of the Henderson industrial precinct.
Offered as one parcel, the land is being marketed by John Bedford, Bruce Catley and Deborah Dowling of CBRE for sale by deadline private treaty closing on Wednesday June 15 at 4pm.
With the current owner, Unitech Property Trust, dissolving and selling its assets, the property presents a strong opportunity for an active investor or developer to acquire a large land holding with a well-established anchor tenant and multiple options for the future.
The anchor tenant, global health and nutrition company DSM, has occupied two buildings on the site since mid-2013 and is now consolidating its operations into 38-44 Bruce McLaren Rd, says Bedford.
“Alongside DSM’s facility, the site also provides vacant land which could be built on, a soon-to-be vacant warehouse building and a smaller streetfront building with a short-term lease which could be redeveloped into retail and/or office units.
“Given the amount of development space, this property would ideally suit an investor with an eye for potential future upside, as there is a significant opportunity to add value here.”
DSM is a global leader in science-based nutrition, health and sustainable living. Its new lease to 38-44 Bruce McLaren Rd will provide $1,021,431 in net annual rent for an eight-year term expected to commence in November. Further holding income of $65,000 a year is provided by a two-year lease to Waitakere Alternative Education Consortium, which occupies the small office building on the street front at 38-44 Bruce McLaren Rd, which has 20 carparks.
These leases, along with the property’s size, location and Light Industry zoning, combine to offer a highly compelling opportunity with real scale in the heart of one of Auckland’s longest-established industrial precincts, Catley says.
“Land holdings of this size are rarely available, especially in tightly-held industrial areas such as Henderson. There are so many possibilities here.”
The northernmost portion of the site, 30 Bruce McLaren Rd, is a 1660sq m parcel of flat, vacant land, accessed off a shared driveway which also services No. 32. It provides a potential opportunity for a future occupier of the warehouse at No. 32 to expand, or for a new building to be constructed to house another tenant for additional income.
At 32 Bruce McLaren Rd is a 2503sq m warehouse, constructed in the 1980s and previously occupied by DSM. Works are commencing shortly to bring the building up to 70 per cent of new building standard, remove DSM’s fit-out and an airbridge connecting the building with DSM’s main facility.
The largest facility on the site, DSM’s buildings at 38-44 Bruce McLaren Rd, provides 7869sq m of building area (across two warehouses) on a 17,883sq m site with car parking and vehicle manoeuvring areas. Plans are in place to expand and improve the canopy and hardstand yard areas, as well as refurbishment of DSM’s offices.
Offering a huge 25,978sq m land holding, the site is well located 1.5km south of Henderson town Centre and Westfield mall, Dowling says.