Investors cleared for Landing at airport location
A premium industrial building that is home to a blue-chip tenant in a sought-after location near Auckland Airport offers buyers the opportunity to acquire a passive investment with long-term upside.
106 Pavilion Drive, Māngere has 9910 square metres of total net lettable area on a 12,600sqm freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.
The A-grade facility is tenanted by New Zealand New Milk Limited who are wholly owned by global dairy giant Lactalis.
The occupants began a new 12-year lease at the property in January and there are two further rights of renewal for six years each leading to a final expiry of 31 December 2047. The lease agreement returns $1,773,115 plus GST in net annual rental income and includes fixed annual rental increases of 3% and four-yearly market rent reviews.
Offering dual access from Pavilion Drive, the property backs on to the 33ha former Villa Maria site acquired by Goodman that will be developed into a new industrial business park, which will only add to the appeal of this location.
The award-winning precinct known as ‘The Landing’ is also easily reached from the subject property, while the motorway network can be accessed via State Highway 20A.
Colliers Directors Brad Johnston, Paul Jarvie, and Scott Soroka
are marketing the property for sale via deadline private treaty closing at 4pm on Wednesday 3 April, unless sold prior.
The property, which is within 2km of Auckland Airport, comprises a high-quality warehouse with two levels of corporate-graded offices and associated amenities. The sprinklered warehouse includes a specialised production area.
The warehouse stud height is 9.5m at the knee rising to 12.2m at the apex and offers excellent natural lighting.
External access to the main warehouse is facilitated by two rollers and two rapid roller doors via a fully enclosed canopy.
The site incorporates concrete paved and asphalt sealed yard areas utilised for access, parking, and storage.
Johnston, Director of Industrial at Colliers, says this is one of the most impressive industrial investment properties that has been presented to the open market this year.
“This is an A-grade asset with a top-tier tenant signed to a longterm lease with favourable terms, including built-in annual rental increases, which will be highly appealing for prospective purchasers,” Johnston says.
“The property has been expertly maintained and has received significant investment over the years making it a highly functional facility for the occupants that has served their needs admirably.”
Jarvie, Director of Industrial at Colliers, says industrial property remains a sought-after asset class among purchasers and vacancy rates in Auckland have been stubbornly low for the past decade.
“A lack of supply in the market means the overall vacancy rate for industrial floorspace across the Auckland region is 1.8 per cent, according to the latest research from Colliers,” Jarvie says.
“The vacancy rate for prime industrial space in the Airport Corridor/Māngere precinct is only 0.2%, meaning tenant demand remains incredibly strong.”
The surrounding area is home to well-known operators such as Mondiale, Hellmann Worldwide Logistics, Bollore, DHL, Foodstuffs, Giltrap Group, and many other logistics and transport operators.
Soroka, Director of Commercial at Colliers, says given the property has low site coverage there is future development potential.
“While there is a long-term lease in place, the configuration of the site means it could be further intensified in the future,” Soroka says.
“Buyers with a long-term view may choose to enjoy the steady rental stream from the property before developing it further.
“With such a collection of compelling investment fundamentals, this property shapes as a must view for discerning investors and we encourage all interested parties to contact us immediately.”