Opportunity to secure one or two Riverhead properties
Two neighbouring properties in the rapidly emerging industrial precinct of Riverhead, northwest of Auckland, are being presented to the market. Buyers have the option of acquiring one or both offerings.
1 Sawmill Rd and 5 Timber Place have a total combined landholding of 15,711sq m.
A freestanding industrial building at 1 Sawmill Rd measures approximately 598sq m on a site spanning 7865sq m, while 5 Timber Place is 7846sq m. Both freehold properties are zoned Business–Light Industry under the Auckland Unitary Plan.
On settlement, new six-month leases will begin at both properties with the existing tenant. There are two further three-month rights of renewal in place meaning there is potentially 12 months of holding income on offer for the new owner.
The new leases will provide a total annual rental income of $635,000 plus GST and operating expenses with $375,000 coming from 1 Sawmill Rd and the balance from 5 Timber Place.
Riverhead is part of the growing northwest of Auckland that is undergoing extensive commercial, industrial and residential expansion in suburbs such as Westgate and Hobsonville, easily reached from these properties.
Colliers directors Ryan de Zwart and Jimmy O’Brien are marketing the properties for sale via deadline private treaty closing 4pm, Wednesday April 3, unless sold prior.
Originally constructed in 2012, the building at 1 Sawmill Rd has a stud height of 4.5-5.7m and access is available via five full-height roller doors. There is also a basic timber office neighbouring the building that has 79sq m of space.
5 Timber Place is used as a yard and across both properties the land is a mixture of sealed yard, part concrete and bare land.
The surrounding industrial precinct is set to receive an infrastructure boost through a wastewater upgrade and transition in water supply from a bore to external provision from Watercare.
De Zwart says the opportunity to acquire one or both properties with the holding income in place will be highly appealing to astute buyers and there are no additional land use covenants, outside of council building codes, tied to the location.
“The new owner will have options at their disposal and this location is perfectly suited for a future industrial development that will likely rise in value as industrial property becomes more difficult to acquire at the current pricing levels,” de Zwart says. “Buying both properties may allow an owner-occupier to enjoy the full offering, while investors could acquire one or both and tenant them accordingly and we expect there would be significant interest in them.”
O’Brien says industrial space remains in demand across the Auckland region due to a continued lack of supply in the market.
“Research from Colliers notes the overall vacancy rate for industrial space in Auckland is only 1.8 per cent,” O’Brien says. “In some areas across the west and northern areas of Auckland the vacancy rates for prime space are lower than this overall figure.”