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News Release

Auckland

Substantial, tenanted warehouse complex in Penrose for sale

JLL marketing 19-21 Industry Road, Penrose​


 

 

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​​​19-21 Industry Road small-min.jpg

JLL agent John Binning is exclusively marketing a substantial warehouse complex in the heart of an established industrial area in Penrose.

Occupied by six tenants from the automotive industry, this high stud warehouse complex, with offices and some retail, sits on a large 10,610 sqm site in the heart of the well-established Penrose industrial area. Major tenants include McPhail Tyres and NZ Car Parts who have committed to leases until 2019 and 2021 respectively. 

The Heavy Industrial Business 6 zoning makes provisions for heavy and noxious uses. The floor area ratio is 2:1, which allows the possibility to build a significantly larger building, which could theoretically be twice the size of the current building, subject to meeting car parking requirements. 

The property was constructed in the 1960s, with extensive upgrade work taking place in 2003-2004 and an additional tyre warehouse having been added in mid-2010. 

Located on well-known Industry Road, the property is in close proximity to the South Eastern Highway and only 13km from Auckland’s CBD. 

JLL agent John Binning says, “This property, being on such a large site and with industrial zoning, has a lot of potential uses. There are a multitude of well-established businesses in the surrounding area with the location and accessibility to Auckland CBD, airport and motorways north and south add to the appeal.” 

The property sits on leasehold land with the current ground lease commencing in 2000 for 21 years plus right of renewal to Penrose Leasehold Ltd. The gross income from the property is $538,000 pa. with a net return of $403,000 pa (plus GST). ​

JLL Associate Director of Research and Consulting, Tom Barclay says, “Demand for industrial space is robust in South Auckland, with the precinct experiencing the highest levels of net absorption across the Auckland region. Even with unprecedented levels of new supply, vacancy rates remain low, with most developments concentrated around the Airport Corridor, East Tamaki and Wiri. Rental levels have increased substantially in the past few years and it is expected that rental growth will be the key driver of capital value over the next 12 months with yield compression moderating.  

The property is being sold by expressions of interest closing Wednesday 25 October, 2017 (unless sold prior). 

Read the NZ Herald story here​.