Industrial scale investment

An expansive industrial site with three established tenants and future large-scale development potential has gone up for sale in the heart of a South Auckland growth hub.

The site for sale at 68 Hunua Road, Papakura, sits within an established precinct which supports a major concentration of heavy industry. Three tenancies – leased to a leading metal recycler, a national masonry supplier and a Spark cell phone tower – generate total net rental income of $1,041,791 plus outgoings and GST per annum.

The freehold land and buildings at 68 Hunua Road, Papakura, are now being marketed for sale by deadline private treaty closing on Thursday 28 October (unless sold prior), through Bayleys South Auckland.

Salespeople Nick Bayley, Karl Price and Matt Dell said the property consisted of a rectangular site of more than 4 hectares with buildings totalling approximately 4120 square metres.

‘‘This is a fully-fenced, level property with a mixture of large metalled and concreted yard areas, weighbridge facilities and various buildings spread across the site. The property offers about 135 metres of frontage and two access points to Hunua Road,’’ said Bayley.

Approximately 14,000 sqm of the site, containing some 2445 sqm of buildings, are leased to Global Metal Solutions (GMS). Founded in 2011, GMS is a leading recycler of metal products including scrap cars and electronic waste.

NZ Brick Distributors occupies around 16,000 sqm with 1675 sqm of buildings. Since its establishment in 2013, this Auckland-based business supplies products nationwide under several respected brands.

A third tenancy is leased to Spark which has a cell phone tower at the site’s southwestern corner.

‘‘In addition to the three established tenancies, the site includes approximately 7600 square metres of vacant land which a new owner could occupy or lease to a new tenant and add to the total rental income,’’ said Bayley.

The land’s Business – Heavy Industry zoning under the Auckland Unitary Plan also lent the site considerable future development potential, he said.

Price said heavy industry zones were typically located close to key freight routes and generally contained sites big enough to accommodate large-scale industrial activities.

‘‘That’s reflected not only in the size of the property for sale, but also in neighbouring sites.

‘‘The surrounding area is home to key manufacturing facilities for the likes of Griffins Foods and Asahi Beverages, plus other national brands such as ITM, and a range of operators in engineering, wood processing, automotive and construction supplies’’ he said.

Dell said Papakura generally was undergoing extensive growth which would transform the area into one of Auckland’s most sought-after commercial and industrial hubs in coming years.

‘‘The area is poised to benefit from several improvements in the transport network, including State Highway 1 improvements between Papakura and Drury, upgrades to Mill Road and electrification of the Papakura-to-Pukekohe rail line. Further benefits will flow from the availability of development land and an abundant labour force.’’