Low site coverage, potential in Otahuhu
A collection of adjoining properties on a prominent corner site in the rapidly developing South Auckland suburb of O¯ta¯huhu provides the opportunity to acquire a sizeable landholding, or a portion of it, that will provide a range of options.
1-5 Great South Rd, 4-8 Saleyards Rd, and 90 Portage Rd includes eight freehold titles and comprises
10,409sq m of total land area. The freehold titles range from 187sq m to 3081sq m and are home to a variety of tenants.
The existing tenancies are a mixture of short and medium-term agreements with termination or demolition causes in place on some of the sites, making this an attractive opportunity for owner-occupiers as well as investors or developers.
A variety of purchasing options are available, or one buyer may acquire the entire portfolio.
The strategically located corner site has 276m of total street frontage to all three roads, providing significant exposure. The site coverage across the entire area is only 19 per cent.
Across the various properties are showrooms, workshops and office space, each varying in quality, but all improvements provide a reasonable platform for refurbishment.
All the titles are zoned Business–Light Industry under the Auckland Unitary Plan.
Colliers directors Ben Cockram, Hamish West and Josh Franklin are marketing the properties via deadline private treaty closing at 4pm on Wednesday 7 December, unless sold prior.
Cockram says it is incredibly rare to see such a large-scale landholding presented to the open market in O¯ta¯huhu. “Owner-occupiers may look to take advantage of the favourable location to surrounding industrial hubs, while investors can enjoy the steady rental stream. Ultimately, the true value from this purchasing opportunity may lie in a developer, or addvalue investor, repositioning the site and creating a substantial development with the holding income proving valuable in the interim.
“There is also considerable flexibility because the Business–Light Industry Zone anticipates industrial activities that do not generate objectionable odour, dust, or noise. This includes manufacturing, production, logistics, storage, transport, and distribution activities.”
West says Ota¯huhu ¯ remains a sought-after location for industrial occupiers. “Recent research from Colliers notes there’s strong demand for functional industrial spaces across the wider Auckland region with prime vacancy rates sitting at 0.6 per cent.
“The demand for industrial property in O¯ ta¯huhu is particularly strong as it sits within the Penrose/ Onehunga corridor that has a vacancy rate of only 0.3 per cent for prime industrial space.”
Franklin says the location will provide the new owner with access to key transport routes. “The site is less than 2km from the O¯ ta¯huhu State Highway 1 onramps and 2.2km to the Mt Wellington on-ramps. The location also offers the opportunity to utilise State Highway 20 and is close to bus and train routes.
“The Wiri Inland Port, Auckland Airport, and Ports of Auckland are easily reachable through existing transport links, providing the property with operational advantages. Nearby businesses taking advantage of this location include Mainfreight, Toll, and Supercheap Auto.
“An opportunity of this scale in such a sought-after location with extremely low industrial vacancy rates will generate strong interest.”