Industrial super site in Penrose
With an established tenant on an expansive landholding, a high-profile property in the tightly-held industrial precinct of Penrose will pique the interest of buyers looking for a topquality asset.
307-311 and 319 Church Street, Penrose offers 8772sqm of total net lettable area on two freehold titles spanning a combined 27,044sqm of land that is zoned business – heavy industry under the Auckland Unitary Plan.
The site is home to New Zealand Starch, a market-leading developer and manufacturer of a diverse range of products, including specialty starches and sweeteners for food and industrial applications. They began a
20-year lease in March 2016 and have two further rights of renewal, one for
15 years and another for 10, providing a final expiry of March 2061. The net annual rental income from the property is $1,387,471 plus GST.
Colliers directors Paul Higgins and Hamish West have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday, November 23, unless sold prior.
The property includes a substantial warehouse measuring 5208sqm, a
555sqm office, a 1667sqm factory,
589sqm pallet mill, 300sqm weigh bridge, and 546sqm of canopy, among other plant and office space. There is a spacious yard of 4520sqm, which adds to the overall functionality of the property.
Higgins says the property houses an established tenant with a longterm view of the site, exemplified through their lengthy lease agreement.
“New Zealand Starch is a prominent business who provides superior supply, service, and technical backup across their extensive product range.
“With distribution warehouses in Auckland, Christchurch, Sydney, Melbourne, and Brisbane they offer efficient delivery and service standards with reduced lead times to customers. They currently export to Australia, the South Pacific, Asia, Europe, and America, and can ship full container lots with the goods palletised, or slip-sheeted to optimise freight costs.”
West says the current lease terms will be highly appealing to prospective purchasers and this investment could serve as an inflation hedge.
“The property is home to a longestablished tenant and the lease agreement is underpinned by annual CPI rent reviews (3 per cent collar), and market reviews on renewal.
“These terms ensure built-in rental growth at a property that sits in one of Auckland’s key industrial hubs.
“Recent research from Colliers notes the Penrose and Onehunga corridor has a vacancy rate of 0.3 per cent for prime industrial property indicating demand for the area remains incredibly strong.”
The zoning provides for industrial activities that may produce objectionable odour dust, and noise emissions.