East Tamaki industrial park leases

4:56 PM Friday August 3, 2018 True Commercial

The 4ha industrial park at 27 Smales Rd with Building B under construction at left. Photo / Supplied

Savills is promoting state of the art warehouse and office space in an industrial park now being developed in East Tamaki.

Industrial brokers Damon Wyllie and David Arlidge say the development, located on a 4ha site at 27 Smales Rd, promises excellent options for tenants.

The owner is Synergy Properties 27 Ltd — fronted by directors Martyn and Aaron Brown — which is also developing the East Tamaki site.

Once fully completed, this $70 million development will add some 22,000sq m of warehouse and office space to the supply-starved East Tamaki industrial market, says Wyllie.

"Given the restricted supply of industrial space in Auckland, especially in centrally-located precincts such as East Tamaki, we're expecting fairly rapid uptake.

"Larger sites of this type are increasingly scarce right across Auckland; demand is expected to remain strong, with vacancy extremely low.

"Meanwhile, East Tamaki's central location and transport links make it among the most highly sought-after industrial areas in Auckland. This means fewer options becoming available to businesses looking to move," says Wyllie.

Arlidge says the project is experienced developer Synergy's largest to date, having an estimated completed value of over $70m.

Synergy will construct a range of buildings — units suited to small-to-medium sized enterprises, right through to large, high-stud warehouse and office facilities.

"There'll be something to suit a range of industrial property occupiers. In particular, it will suit businesses wanting to upgrade to new premises, while remaining within easy reach of the city centre and the airport," says Arlidge.

040818SmalesTRUECOMM2 (1) (003).jpg

An artist’s impression of Building C27 which has five warehouse units. Photo / Supplied

Construction of Stage 1, which is to comprise 9000sq m of buildings, is well underway.

These buildings are being constructed on an uncommitted basis and will include a large 3565sq m warehouse and office facility; five smaller warehouse units of 767sq m to 1118sq m in size, and a cafe.

Stage 1 is expected to be ready to occupy by the second quarter of 2019.

Stage 2, which is to add a further 13,000sq m of buildings to the development, is planned to start construction in mid-2019. This stage will give companies looking for a turn-key design build solution the option to lease a purpose-built facility on the western side of the site.

Arlidge says the finished development is to have three vehicle access points to Smales Rd, with the estate positioned mid-way between two key local arterial routes, Harris Rd and Te Irirangi Dr.

"It will feature an internal dual carriageway with a large turning circle providing direct access to all the buildings. Entrance to the estate will be fenced and gated with tenant-only access after-hours. Ample car parking will also be provided."

Martyn Brown says Synergy purchased the site in June 2015, with a lease-back arrangement in place to the vendor, Fletcher Concrete and Infrastructure.

"We considered the site desirable as a development proposition, based on its excellent location and high-demand area. The two-year lease-back to Fletchers made the purchase a no-brainer," he says.

Fletchers operated a Firth concrete plant on the site up until October 2017.

040818SUPSmalesTRUECOMM3 (1) (003).jpg

An artist’s impression showing part of Building B. Photo / Supplied

Immediately following its departure, Synergy began work levelling and metalling the site, and ground works for Stage 1 were completed at the end of April this year.

A developer of 20-years-standing, Synergy Properties owns the properties it develops for the long-term, Wyllie points out.

"This strategy allows the group to develop with the future in mind, instead of today's profit margin.

Synergy has a long history of developing office and warehouse facilities and it understands the key factors that make these buildings work to optimal efficiency," adds Arlidge.

The development at 27 Smales Rd will feature high-strength warehouse floors, extra-wide roller doors, sprinklers, high cubic capacity within the warehouses and even charging stations for Electric vehicles.

"Each building, even the smaller units, will also have a dedicated hard-stand yard area to accommodate 40-foot containers and vehicle movements.

"Synergy has taken care to design the development in a way that facilitates easy access for trucks," says Arlidge.

Synergy's developments have traditionally been in the industrial sector, but the group has also delivered retail and showroom properties.

These include the 6500sq m Home Base Botany centre; office blocks including 7a Pacific Rise, Mt Wellington (occupied by Asure Quality) and a Motorlodge hotel in Rotorua, trading as Regal Palms.

At a glance

• 4ha site near Highbrook Business Park, East Tamaki.
• Stage 1 comprises 9000sq m of buildings.
• To be completed in the second quarter of next year.
• Small units through to high-stud warehouses/offices.
• Central location, good transport links.