High-flier boasting first-class tenant, premium airport site
A premium industrial building that is home to a blue-chip tenant in a sought-after location near Auckland Airport offers buyers the opportunity to acquire a passive investment with long-term upside.
106 Pavilion Drive, Ma¯ngere, has 9910sq m of total net lettable area on a 12,600sq m freehold site zoned Business–Light Industry under the Auckland Unitary Plan.
The A-grade facility is tenanted by New Zealand New Milk Ltd which is wholly owned by global dairy giant Lactalis.
The occupants began a new 12-year lease at the property in January and there are two further rights of renewal for six years each leading to a final expiry of 31 December 2047.
The lease agreement returns $1,773,115 plus GST in net annual rental income and includes fixed annual rental increases of 3 per cent and four-yearly market rent reviews.
Offering dual access from Pavilion Drive, the property backs on to the 33ha former Villa Maria site acquired by Goodman that will be developed into a new industrial business park, which will only add to the appeal of this location.
The award-winning precinct known as The Landing is also easily reached from the property, while the motorway network can be accessed via SH20A.
Colliers directors Brad Johnston, Paul Jarvie and Scott Soroka are marketing the property via deadline private treaty closing 4pm, Wednesday April 3, unless sold prior.
The property, which is within 2km of Auckland Airport, comprises a high-quality warehouse with two levels of corporategraded offices and associated amenities.
The sprinklered warehouse includes a specialised production area, stud height of 9.5m at the knee rising to 12.2m at the apex, with excellent natural lighting.
External access to the main warehouse is facilitated by two rollers and two rapid roller doors via a fully enclosed canopy. The site incorporates concrete paved and asphalt sealed yard areas utilised for access, parking and storage.
Johnston says this is one of the most impressive industrial investment properties presented to the open market this year. “This is an A-grade asset with a top-tier tenant signed to a long-term lease with favourable terms, including built-in annual rental increases, which will be highly appealing for prospective purchasers.
“The property has been expertly maintained and has received significant investment over the years making it a highly functional facility for the occupants that has served their needs admirably.”
Jarvie says industrial property remains sought-after among purchasers and vacancy rates in Auckland have been stubbornly low for the past decade. “A lack of supply in the market means the overall vacancy rate for industrial floorspace across the region is 1.8 per cent, according to the latest research from Colliers.
“The vacancy rate for prime industrial space in the Airport Corridor/Ma¯ngere precinct is only 0.2 per cent, meaning tenant demand remains incredibly strong.”
Soroka says the property’s low site coverage means there is future development potential.