Industrial estate for sale for the first time in years
A major, multi-tenanted industrial estate occupying a large landholding in the closest industrial precinct to Auckland’s CBD has come up for sale for the first time in many years.
528-558 Rosebank Road, Avondale, occupies a 49,841sqm road-front site on the Rosebank Peninsula. The near-5-hectare site features eight buildings providing 26,902sqm of lettable area. It is predominantly leased to Unison-owned transformer manufacturer ETEL Limited, which occupies five of the nine buildings and makes up 73 percent of the net rental income.
Marketed by Bruce Catley, Chris
O’Brien and John Bedford, the property is exclusively for sale by Expressions of Interest through CBRE, closing 6pm Thursday 27 August 2020.
Bruce Catley says that investors have a singular opportunity to acquire a multi-tenanted industrial asset with a strong weighted average lease term (WALT) from a property with a high underlying land value.
“The market is aware of 528-558 Rosebank Road as a strategic industrial estate in a superb industrial location, with good reason. As the biggest industrial property offering in this area for many years, it is a noteworthy investment opportunity.
“This Light Industry-zoned estate benefits from powerful emerging logistics trends and offers potential for a range of future uses. Demand for modern, well-located, wellconnected industrial space is intense due to the focus on last-mile delivery capabilities.”
Bedford says that the WALT across the estate is 6.5 years, spread across five tenants that together provide an annual net rental of $3,406,642 through the 26,902sqm of lettable space. “The site’s future potential is also a benefit for the successful owner and any occupiers as the layout, with its drive around and secondary egress onto Timothy Place, ensures efficient flow of vehicle movements, with ample yard space and in excess of 300 carparks.”
Anchor tenant ETEL occupies 21,367sqm of the current floor area on the estate. ETEL signed a new nineyear lease structure commencing on 1 August 2019, including steps over the next year to reach $2.5m, as set out in ETEL’s five leases.
Catley says that the estate has been completely repositioned over the last three years, with leases renegotiated and the property refurbished through a major capital works programme.
“The shorter-term lease expiries are in the most modern, A Grade quality, parts of the estate. Given the strong demand by industrial and commercial users, plus the extensive carparking in this location, there will be ready demand for alternative occupiers should existing tenants move on. Furthermore, there are some add-value opportunities worth considering, with the potential to reconfigure the car parks and/or adding additional footprint.”
Catley adds that the growing skilled workforce nearby underpin the location’s attraction for businesses, along with its accessibility.