Top-shelf offering in wine country
Two neighbouring industrial buildings with an established tenant in Glendene, West Auckland, are available for purchase and will appeal to buyers looking for prime assets with a steady rental stream.
4 and 6 Akatea Rd provide a combined net lettable area of 2570sq m on a 4369sq m landholding. The properties, which can be purchased individually or in one line, each have a five-year lease that will begin on settlement with one further right of renewal for three years.
The total combined annual rental income from both properties is $520,000 plus GST and outgoings. The lease agreements include 3.25 per cent annual increases and a market review on renewal.
The properties are tenanted by wine company Delegat which has a strong focus on delivering premium wines to a global network.
Featuring high-stud warehouses ranging from 7.7m-8.8m in height. Both offer access via three roller doors.
A well-appointed yard between the two buildings enhances operational efficiency. Ample parking is available at the front of the buildings.
The land is zoned Business—Heavy Industry under the Auckland Unitary Plan.
Located within the busy industrial location of Spans Farm, the properties are 24km from Auckland Airport and the CBD is 17km away. Improved transport infrastructure, including motorway upgrades, have provided a new level of connectivity for West Auckland to the rest of the city.
Colliers brokers Dhiru Patel, Greg Goldfinch and Nelson Raines are marketing the property via deadline private treaty closing 4pm, Thursday May 16, unless sold prior.
The warehouses are intentionally designed with minimal amenities. This flexibility enables customisation for potential future occupants requiring office space. The buildings have been meticulously maintained and will continue to be so during the new lease term.
■ 4 Akatea Rd has 1423sq m of total net lettable area on a 2476sq m landholding. The building includes a warehouse that spans 1374sq m as well as amenities, canopy, and supporting yard space. Annual rental income is $285,000 plus GST and outgoings.
■ 6 Akatea Rd is home to an 1146sq m building on a 1893sq m site. The warehouse measures 1134sq m. There is a small amenities area, canopy and yard. Annual rental income is $235,000 plus GST and outgoings.
Patel, associate director of industrial at Colliers, says the occupant provides a strong tenant covenant for prospective purchasers.
Founded as a family company in West Auckland, “Delegat have been in business since 1947 and have a global distribution network with teams in the US, the UK, Ireland, Canada, Australia and China, among other locations,” Patel says. “They have technologically advanced winemaking techniques that have helped position them as an industry leader and standard bearer.
“The built-in rental growth in their lease agreements will be highly appealing for buyers and adds to the offering.”
Goldfinch, national director of industrial at Colliers, says industrial property continues to draw interest among discerning buyers due to the strong underlying investment fundamentals.
“These properties offer key features that buyers look for such as established tenants in a high-quality premises in a sought-after location,” Goldfinch says. “The latest research from Colliers notes the availability of industrial floorspace continues to remain near historic lows with the current overall vacancy rate sitting at 1.8 per cent for the wider Auckland region.” Raines, general manager at Colliers West Auckland, says the surrounding area is home to a number of big-name brands. “National businesses are located near the subject properties, solidifying Spans Farm as a functional location for firms to trade from,” he says.