Thirty years of ownership of a large industrial land holding in the Wairau Valley is about to come to an end with the tendering of an 8524m² site with substantial frontage to Archers Rd.
The vendors, who have owned the property at 201 Archers Rd since 1987, have appointed Ranjan Unka and Trevor Duffin of Bayleys North Shore Commercial to market the offering by tender, closing on October 26 unless sold prior to that date.
“Property is very closely held in the Wairau Valley and it is not often that a holding of this size with such high profile exposure on a main road comes onto the market,” says Unka. “It offers a huge opportunity for a wide range of prospective purchasers from developers and add value investors through to yard-based businesses or owner-occupiers looking for a large block of well-located land to build new premises.”
The rectangular land holding, which is zoned Light Industry, has a very gentle contour and wide street frontage of approximately 65 metres onto Archers Rd and a depth of approximately 130 metres, he says.
Buildings comprise a 1600m² warehouse constructed in the early 1980s, plus a variety of small structures and lean-tos of undetermined age and size. The main building’s façade was refurbished in 2003 but it is otherwise in original condition, says Unka. The site is mainly gravelled and fenced, with an under-utilised strip of land at the rear.
The property has two long-standing tenants who are providing holding income of $181,333 per annum. Newflor Industries Limited, established in 1977 and one of New Zealand’s largest suppliers of residential and commercial floor coverings, occupies the main warehouse. Timber Recyclers Limited is the other occupant and predominantly uses the property as a demolition yard.
“Both tenants have operated from the property for many years but are now on month-to-month leases which means the purchaser could terminate their tenancies whenever they choose or they could endeavour to negotiate a longer tenure with one or both of them and/or look for other tenants. This could be an option for a ‘sit and hold’ purchaser,” says Unka.
“However, the site is underdeveloped with a low building coverage so for purchasers wanting to maximise the rental return, a comprehensive redevelopment would be the most logical course of action.”
Trevor Duffin, who specialises in the sale and leasing of properties in the Wairau Valley, says the area is starved of good quality smaller industrial units and the site would be ideal for a development focused on this sector of the market.
“The vacancy rate for smaller industrial units in the Wairau Valley has been at negligible levels for many years and it’s now got to the point where vacant units are in some instances fetching a higher price than tenanted units because businesses are so desperate to get a foothold in the area.
“In some instances, tenants are also offering more than the asking rental just to secure premises. Both tenants and owner occupiers are also often having to settle for older-style, very average quality units which they are paying top dollar for.
“All this suggests that a subdivision of the site into smaller units, with a high ratio of warehouse to office space and possibly some live/work units if the necessary consents can be obtained, would meet with a very positive response from the market.”
Four commercial investment properties in Takapuna and Birkenhead will go under the hammer later this month in Bayleys’ latest national Total Property portfolio auction.
In central Takapuna, a 321m² two-level building on an 888m² site at 398 Lake Road is offering its next owner $165,000 in net annual rental income from a new six-year lease to longstanding tenant
The property is being marketed by Ranjan Unka and Tonia Robertson and will be auctioned on October 25, unless sold prior to that date.
Ranjan Unka says the Skin Institute has occupied the high profile premises since 1994 and has recently renewed its lease until September 2023, with three further three-year rights of renewal. “Usually this sort of longevity in a tenancy is a strong indication that the location is working really well for the occupant. The property is well positioned right in the heart of Takapuna surrounded by shops and a wide range of cafes and restaurants and is also close to the beach.
“The other aspect of this offering that should attract investors’ attention is its Mixed Use zoning under the new Auckland Unitary Plan. This means it has longer term development potential with the possibility of adding residential accommodation with seas views on top of its commercial base.”
In the meantime, the property offers investors an excellent opportunity to enhance their existing portfolios, says Tonia Robertson.
The Skin Institute’s Takapuna surgical centre is one of 18 multi-disciplinary clinics it operates throughout New Zealand offering a comprehensive range of specialist, cosmetic and surgical treatments for cancer, veins, dermatology as well as other visual appearance services.
“The building has been very well maintained and has a high standard of fit out and finishes with 18 on site carparks also increasing the property’s tenancy appeal.”
The other property in Takapuna scheduled for auction on October 25 is located just off Lake Road at 58-60 Jutland Road and encompasses a 398m² two-level building on a 371m² site.
Adam Curtis, who is marketing the property with Damian Stephen and Nick Howe-Smith, says it benefits from a diversified income stream with a mixture of commercial and residential tenancies producing net annual rental income of $100,088.
“The property comprises three adjoining ground floor retail units, anchored by a superette, with two flats and has been extended, refurbished and improved over the past 10 to 15 years. It is a very popular local neighbourhood retail property close to Takapuna and serving the local community at Hauraki Corner.”
Damian Stephen says the property has a favourable Neighbourhood Centre zoning which longer term provides potential to increase the lettable area by taking advantage of the 13m height limit, subject to obtaining the relevant consents.
“In the shorter term, there is the possibility of some rental upside being achieved through rent review mechanisms which will come into play in 2018.”
Two Birkenhead properties will also feature in the Bayleys’ Total Property auction at Bayleys House in Wynyard Quarter on October 25, unless sold prior: