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Auckland

Flexible industrial investment available in Glen Eden

JLL marketing two tenanted buildings on single title in West Auckland


 

 

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Interior of warehouse 7 Waikaukau St web.jpgJLL is marketing a large industrial property for sale in Glen Eden, which has significant potential for the new owner. 

JLL agents Alex Wefers and Jason Armstrong are marketing it as an opportunity for investors and owner-occupiers. This freehold property is for sale through an expressions of interest process, closing March 2. 

“It is a single title with two tenanted 1970s buildings in a light industrial area. This 3900sqm site at 7 Waikaukau Road has a total lettable area of 1,992sqm, made up of a clear-span warehouse at the rear of the property and a smaller building at the front, with plenty of carparking,” Wefers says. “Together they are bringing in $90,200 net per annum.

“The smaller building has a five-year lease in place with one right-of-renewal, however the lease on the rear building has expired and the tenant is on an informal month-to-month lease arrangement. The warehouse is under-rented so there is upside for the new owner to increase the return on this investment,” Wefers says. ​

“We see huge potential and flexibility in this investment, which has been owned by the same family for more than 20 years,” Armstrong says. 

“Studio Ceramics has occupied the 1728sqm warehouse for around 20 years and the business is well known to the West Auckland community for its artistic ceramics inspired by New Zealand flora and fauna, which is manufactured on site. Studio Ceramics’ lease has expired and needs to be renegotiated. 

“There would also be scope to turn the warehouse building into multiple tenancies in the future. It has multiple roller doors, is in good condition and has had a new roof put on it,” Armstrong says. 

“Meanwhile the 264sqm building at the front of the site is leased to a local community group as a Learning Centre until 2020, with one right of renewal of five years. So there is guaranteed income of $26,400 a year, with the next rent review coming up in June 2017.”

Glen Eden is around 16km by road from Auckland’s CBD or a 30-minute drive. Waikaukau Road is a no-exit street on the northern side of West Coast Road. The property is 1.7km from Glen Eden Train Station, which is a 40-minute journey from Britomart.

“When the Waterview Connection opens this year, the industrial areas of West Auckland will suddenly be much more accessible,” Armstrong says. “That’s good news for businesses, and we expect it to have a strong influence on the industrial property market too.”

The population of Glen Eden and its neighbouring suburbs is forecast to increase significantly. By 2043, the area is expected to have gained 59,800 people – a 40 percent increase compared to its population in 2016. 

“This property offers a great opportunity for an investor with vision to immediately add value and increase their return on investment in this low interest rate environment,” Wefers says.