First-rate premises, tenant in Northwest
An A-grade industrial asset with a blue-chip tenant in the rapidly developing Northwest Auckland suburb of Hobsonville is being presented to the market.
6-8 Inanga St is home to AMI RepairHub Hobsonville, and the brand-new, stand-alone property has 2657sq m of total floor area on a 4721sq m freehold site zoned Business–Light Industry under Auckland’s Unitary Plan.
The tenant, IAG New Zealand, is the largest general insurer in the country, trading under the AMI, State, NZI, NAC, Lumley, and Lantern brands.
IAG New Zealand has a 10-year lease that runs until December 2033 and there are two further rights of renewal available for three years each.
The total net annual rental income from the property is $565,110 plus GST and outgoings, while the lease agreement includes built-in annual rental growth throughout.
With multiple access points and 24 dedicated carparks, the property offers convenience for those who use it, while a key SH16 interchange that links West Auckland to major transport facilities such as the Port of Auckland and Auckland Airport is nearby.
The popular Westgate Shopping Centre is less than
3km away, meaning there’s a host of amenities on the doorstep.
Colliers directors Matt Prentice and Shoneet Chand have been appointed, alongside Matt Mimmack and Matt Preston from Bayleys, to market the property via deadline private treaty closing at 4pm, Thursday March 21, unless sold prior.
The building, which includes a tenant-specific fit-out, offers 1999sq m of high-stud warehouse space accessed via three motorised roller doors, and small offices across two floors.
There is also a sealed yard measuring 1236sq m, along with a large power supply to the premises.
Prentice says the combination of a first-class tenant signed to a long-term lease in a premium building with low site coverage makes this a highly attractive passive investment opportunity.
“IAG New Zealand is part of Insurance Australia Group, an ASX-listed company with general insurance businesses in Australia and New Zealand,” Prentice says.
“Not only does this offering present a strong tenant covenant, but there are also enticing lease terms on offer for the new owner given the built-in rental growth through annual and market increases.
“If all rights of renewal are exhausted this agreement will run until December 2039.”
Mimmack says Hobsonville has fast become a thriving commercial and industrial hub with a growing residential catchment that topped 10,000 people in June 2022.
“There are multiple education facilities and green spaces in the area, which is considered family-friendly,” Mimmack says.
“The expansive array of nearby amenities, including access to New Zealand’s first Costco, is a major drawcard.”
Industrial property continues to remain a sought-after asset class among investors given the low vacancy rate across Auckland that is underpinned by a lack of supply.
Chand says Hobsonville has become the location of choice for a strong collection of well-known firms who have targeted the area for expansion.
“The subject property is surrounded by companies such as National Mini Storage, Mainfreight, and Bidfood who have all set down roots in Hobsonville as the location continues to grow,” Chand says. “This is a trophy investment that discerning buyers will recognise as one of the year’s premier purchasing opportunities.”
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.