Industrial Headquarters With 10-year Lease Goes On The Market For Sale

The land and building jointly housing the machinery manufacturing plant operated by an industrial tool-making firm, alongside storage space for one of New Zealand’s biggest DIY-building supply chains, have been placed on the market for sale.

The purpose-built property at 34 Apollo Drive in the Auckland suburb of Rosedale on the North Shore consists of a 3,368 square metre high stud warehouse and office complex sitting on some 5,160 square metres of land.

The majority of the property is tenanted by engineering firm RPM International Tool & Die Ltd which makes machinery parts and devices. The firm’s tenanted portion of the building consists of 1,610 square metres of warehousing floorspace, 828 square metres of offices and amenities, and a 167 square metres canopy over the workshop floor’s roller door entrances and exits. Meanwhile, Mitre 10 New Zealand utilises its 741 square metre portion of the premises for goods storage.

Combined, the two tenancies within 34 Apollo Drive generate a net annual return of $492,080 plus GST. RPM International Tool & Die is on a 10-year lease running through until 2030, with two four-year rights of renewal, and rent reviews every two years. Meanwhile Mitre 10 Ltd on a three-year lease running through until 2022, with two further three-year rights of renewal and rent reviews and increases annually.

The property is being jointly marketed for sale by deadline private treaty through Bayleys North Shore salesperson Matt Mimmack and Andrew Bruce of NAI Harcourts, with the process closing on July 2 (unless sold prior).

Mr Mimmack said the freehold land at 34 Apollo Drive was zoned general business under the Auckland City Council Plan and contained 53 car parks for the two tenants. He added that the generally rectangular-shaped premises with its two-storey offices was completed in 2004, and had an A-grade new building standards rating of 92 percent.

“The tilt-slab constructed building is future-proofed for growth - with a lease provision for RPM International Tool & Die to take over the adjoining Mitre 10 space in the back, if and when that becomes available,” Mr Mimmack said.

“The building has dual entrance points off Apollo Drive – allowing for both Mitre 10 and RPM International to have split tenancy profile. Each tenant has their own car parking spaces.

“As a venue which has considerable customer interaction with the public, the RPM office space has a bright, modern, double-height entrance foyer and lobby stairwell leading up to the company’s reception desk.

“Behind the offices, the main warehouse portion of the building has a stud height ranging from 7.8 metres around the perimeter to 9 metres at its apex, with access via multiple roller doors. Gantry rails and girders support RPM International’s pair of five and ten-tonne cranes,” said Mr Bruce.

“Situated in the middle of the factory floor is a ‘watch tower’ style office amenity occupied by the firm’s engineering and drafting personnel – giving them easy access to and contact with, the build personnel on the factory floor.”

Mr Bruce said Mitre 10’s tenancy reflected more of a traditional functional warehouse/office format.

Rosedale sits immediately to the south of the retail-focused suburb of Albany on Auckland’s North Shore, and comprises a mix of predominantly commercial and light industrial activity tenancies. Neighbouring firms around the 34 Apollo Drive address include Plumbing World, cleaning products manufacturer/retailer Wet and Forget, and Ideal Electrical.

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