Prime industrial properties boast long-time tenant, room to grow
Two underdeveloped industrial sites with favourable zoning in Auckland are for sale and will draw the attention of owner-occupiers, investors and developers.
88-98 Patiki Rd, Avondale, is home to a 439sq m warehouse on a 5059sq m site while 28 Spartan Rd, Takanini, has 746sq m of total net lettable area on a 3230sq m site.
Both freehold properties are zoned Business–Heavy Industry under the Auckland Unitary Plan, and are tenanted by Hynds Pipe Systems, the largest operating company within the Hynds Group. The properties can be purchased individually or together.
Hynds operates a distribution network of 35 branches throughout New Zealand, supplying over 40,000 product types for drainage, water main, environmental, industrial process and rural applications.
Colliers directors Matt Prentice and Shoneet Chand are marketing the properties via deadline private treaty closing at 4pm, Tuesday November 28, unless sold prior.
88-98 Patiki Rd is in an A-grade location with the Northwestern Motorway only moments away, meaning customers and suppliers have exceptional access to other areas of Auckland.
Hynds Pipe Systems is currently in a two-year lease that runs until July 2025 and there is one further right of renewal for two years. The lease agreement provides $277,500 plus GST and operating expenses in net annual rental income.
The functional warehouse at the property spans 377sq m, while the office measures 62sq m. The sealed yard is 3820sq m and there are 13 dedicated carparks.
Prentice says this is an outstanding offering given its strategic location and low site coverage.
“Investors will be drawn to the tenant covenant of a long-established occupant at this property, while owner-occupiers may show interest with an eye to utilising the site when the current lease agreement ends,” Prentice says.
“There is a significant opportunity to further intensify the usage of the site and a major development could be on the cards.”
At 28 Spartan Rd, Hynds Pipe Systems are in the final years of a lease that expires in September 2025.
The lease provides $190,000 plus GST and operating expenses in net annual rental income.
The stand-alone building has a 629sq m warehouse and two floors of office space and the level contoured site is perfectly positioned for a future development.
Hamish West is marketing the property alongside his colleagues Prentice and Chand and says it has excellent road exposure.
“The property is highly visible and is easily accessible from Spartan Rd. SH1 is also nearby, promoting connectivity across the wider Auckland region,” West says.
“This location is a prime spot in Takanini and
given the noted lack of supply of industrial space across Auckland, this property will hold considerable appeal for buyers who have the opportunity to acquire a premises that could be vacant within two years.
“Research from Colliers notes there is no available prime industrial space in the Manukau and Wiri precinct, while East Ta¯maki has a prime vacancy rate of 0.1 per cent.”
Chand says the zoning will be appealing to buyers given the flexibility it affords future occupiers.
“The Business–Heavy Industry Zone provides for industrial activities that may produce objectionable odour, dust, and noise emissions,” Chand says.
“These are two of the most impressive industrial properties we have brought to the market this year and they have extensive future growth potential. Having the opportunity to acquire industrial properties with such low site coverage and user-friendly zoning is incredibly rare.”