Possibly perfect passive property
The new warehouse and office complex at 13 Mahunga Dr, Mangere Bridge. Photo / Supplied
A newly-completed warehouse and office complex for sale in Mangere Bridge, South Auckland, is being promoted as ‘ticking all the boxes’ as a long-term passive investment property.
“This is an ideal bottom-drawer industrial investment premises,” says Dwayne Warby, industrial director with Colliers International who, with colleagues Paul Higgins and Brad Johnston, is marketing 13 Mahunga Drive, Mangere Bridge, for sale by auction at 11am on Wednesday, December 12, unless it sells earlier.
“Its strong fundamentals tick all the boxes including: a highly accessible location, quality modern construction, strong tenant covenant and favourable long lease,” Warby says.
Featured in the latest Colliers Portfolio publication released yesterday, the 1307sq m industrial facility comprises a modern tilt-slab warehouse with a huge canopy and well-appointed offices and amenities.
“The building occupies a newly subdivided 2136sq m freehold site less than 800m from the interchange with the Southwestern Motorway [State Highway 20]. It’s for sale with a new lease to Finest Foods – a well-established syrup and cordial manufacturer serving clients within the food service industry both here and overseas.”
The lease earns $220,655 plus GST in net annual rent, with two rights of renewal of four years each extending its potential final expiry date to May 2034.
Warby says its closeness to SH20 makes it well-connected. “The site is only 8km from Auckland International Airport and under 14km from the CBD and Ports of Auckland.
“With the completion of the Waterview Tunnel, it has even greater access to the wider Auckland region, via a direct route to West Auckland and an alternative bypass route to the North Shore.”
Higgins says the warehouse has 1072sq m of clear-span space with a high-stud height of 9m at the portal knee. “It’s well-lit with high bay lighting and translucent roofing panels. Access is via two large roller doors covered by a big 383sq m, cantilevered canopy.”
The secure concrete yard is accessed via a dedicated entranceway or a right of way from the adjoining property at 11 Mahunga Drive and the property has an excellent profile to Mahunga Drive.
“The attractively finished building has 235sq m of premium-grade office space split over two levels at the front of the property,” Higgins says.
“The fully air-conditioned offices are mostly open plan, along with a staff kitchenette and toilet facilities.”
Johnston says the property is in a low-vacancy area that is home to many recognised brands.
“The completion of major road infrastructure projects in the area in recent years has resulted in the precinct becoming a prime location for industrial users.
“Neighbouring businesses of note include Progressive, Toll Intermodal, Steel & Tube and NCI Packaging.”
The site is zoned Light Industry, which allows for industrial activities that don’t generate objectionable odour, dust or noise. This includes manufacturing, production, logistics, storage, transport and distribution activities.
Higgins says tenant Finest Foods has recently undergone a significant transformation under new ownership.
Entrepreneur Andrew Brodie purchased the then 30-year-old company in 2013 and set about transforming both its market positioning and manufacturing capabilities.
The company’s established Supreme brand supplies milkshake syrups and essences to supermarket and hospitality clients.
Under Brodie’s ownership, Finest Foods has launched several new brands including The Goodness which produces a premium range of coffee syrups and dessert sauces; and sets itself apart by using Fair Trade sugar and natural colours and flavours.
Additionally, in 2015 Finest Foods acquired the Kapiti Kitchen natural fruit cordial business which expanded its reach and range both here and in Australia.
Higgins says the property has been built to high standards by specialist commercial property developers Statesman Projects.
Founded in 2000, Statesman specialises in the construction of high-quality warehouse, factory and office buildings.
“Its experienced staff, including licensed building practitioners and qualified project managers, have delivered dozens of projects in Auckland and nationwide,” Higgins says