Two industrial sites up for grabs

Two industrial sites up for grabs

Auckland, Tuesday 14th October 2014 - An opportunity to purchase two prime and well-positioned Auckland industrial properties have come to the market for investors seeking ventures in the high profile industrial precincts of Penrose and Otahuhu. Commercial real estate agency JLL, are offering both properties for sale through sole agency via an expression of interest campaign closing Friday the 24th October 2014 and Wednesday the 29th October 2014 respectively, unless these properties are sold prior.

12 Southdown Lane, Penrose is situated on a 17,500 sqm bold road frontage site located off Great South Road, within close proximity to all main arterials including SH1 and the South Eastern Arterial. Currently occupied by Owens Transport, a subsidiary of Mainfreight, the 7,300 sqm leasehold industrial building includes the ability to access a rail siding option. The Owens transport facility is broken up into 4,028 sqm of warehouse space, 820 sqm of office space, mezzanine storage, amenities and a large external yard area of 3,200 sqm. As well as a 1,633 sqm semi-enclosed canopy, there are four more enclosed canopy’s allowing for ample loading and unloading space. The warehouse stud height is 6.10m rising to 8.93m which is of significant size and accommodates for a number of different activities.
This property is leasehold and currently returns $550,000 per annum which will be rising to $575,000 per annum on the 31st December 2015 for a further 5 year term expiring December 2020.

Sam Smith, National Director for JLL’s Industrial Sales and Leasing team who is marketing the property alongside colleague, Ben Pilley says “This property is in an extremely accessible location to all the main arterials, has a high stud and a significantly large scale external yard area. The properties four canopy’s makes the facility ideal for a transport operation. With the availability of large industrial sites like this decreasing and a limited supply of stock coming to the market, we expect this property to be in high demand.”
The property is Business 6 zoned under the Auckland Council District Plan which allows occupants to use the site for heavy industrial uses.

The second industrial site offered by JLL is centrally located 126 Portage Road Otahuhu/Mt Wellington, a highly practical premise with a sizable yard currently leased by construction company, AH Construction. The 4,350 sqm site is freehold and includes 747 sqm of warehouse and office space, currently returns $110,000 per annum with a market review and renewal in July 2015. The low site coverage provides the landlord with future development opportunities. The property is situated on the Southern side of Portage Road, Otahuhu only a short distance from Saleyard Road and Great South Road feeding into Mt Wellington and Otahuhu. Neighbours in the area include Bellingham Marine, Warren Fowler Earthmovers and Progressive Enterprises.

Ben Pilley, Associate Director for JLL’s Industrial Sales and Leasing team says, “The property is zoned business 5 under the Auckland Council District Plan which allows it to be used for a range of mixed activities including industrial and office use. Prime assets in the Auckland industrial markets continue to be favoured by investors of all types and both of these industrial properties provide an excellent opportunity for a good yield differential over the costs of financing hence why we expect to receive a lot of interest.”

Pilley continues, “Penrose and Otahuhu are both consolidated industrial areas meaning there is very limited supply that is becoming available to the market. Generally the stock that is available is of a smaller scale so properties of this size in these highly sought after locations are considered unique.”

Due to their excellent connections to SH1, South Eastern Highway and the Airport; Penrose and Otahuhu are considerably Auckland’s most premier industrial sites and just a ten minute drive from the CBD.

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