Unique site, significant opportunity on market
An opportunity to acquire a significant property near Auckland’s CBD has arisen with 56 Carrington Rd, Pt Chevalier, coming on to the market.
The property features 2.12ha of freehold land with an 8812sq m industrial building. The property is zoned Special Purpose–Healthcare and Hospital and is currently tenanted by NZ Pharmacy Retailing (NZ) Ltd trading as OneLink, a subsidiary of EBOS Group.
The well-established tenant provides annual rental income of $1.36m plus outgoings plus GST. The leaseback term of two years provides a strong holding income while allowing a developer or owner-occupier to plan their vision for the site in the future.
The well-located last-mile logistics facility is within 7km of Auckland’s CBD and borders the Carrington Residential Development and Unitec (Te Pu¯kenga) campus.
JLL NZ has been appointed to market 56 Carrington Rd. The deadline date for offers is 4pm, Wednesday, August 31, unless sold prior.
JLL head of logistics and industrial Jolyon Thomson says along with desirable cashflow, the property holds strong underlying land value that will appeal to purchasers looking to take advantage of the healthcare and hospital zone.
The prospects for New Zealand’s healthcare and medical property sector are positive.
Medically linked opportunities undoubtedly have clear underlying defensive investment characteristics which is increasingly chiming with investor market sentiment.
“Unlike more traditional sectors, healthcare property’s performance does not rely on the economy as a key demand driver,” Thomson says.
“It’s an essential service and as such is a largely non-discretionary spend. This means it’s resilient to factors like economic sentiment, unemployment levels or interest rates. These attributes make healthcare property unique as an asset class.”
This has been the case due to the ageing New Zealand population and general population growth leading to an increase in people seeking medical services. It has become even more exaggerated with Covid-19.
According to Stats NZ, the over-75 population will balloon to 832,810 by 2043.
This mirrors trends seen in Europe and North America, including more established healthcare infrastructure, substantial GDP expenditure on health and social care, and decreased regulation of the sector.
JLL logistics and industrial associate director Richard McNaught says the property’s central location is key to last-mile logistics.
This sector has grown enormously in recent years on the back of Covid-19’s impact on retail operations.
“Central locations are critical to unlocking success in this arena as they allow providers to operate smaller, more easily serviceable catchment areas, especially in dense residential suburbs.
“Smaller catchment areas mean shorter distances between deliveries, less wasted drivetime with empty vehicles needing to refill, which all equates to higher delivery volumes and greater efficiency,” says McNaught.
56 Carrington Rd is also located in an area that is well connected to the wider Auckland region by state highways and public infrastructure.
The property is 350m from the major interchange connecting the Northwestern and Southwestern motorways.
JLL logistics and industrial senior broker Chris Wakim said the property provides an exceptional investment opportunity appealing to all buyer groups — investors, developers, land bankers and owner-occupiers.
“The unique nature of this property and its location will have strong appeal to a multitude of buyers for a wide range of alternative asset classes,” says Wakim.