Solid tenants in Penrose industrial complex

10:31 PM Wednesday October 3, 2018 True Commercial

High-stud warehouses and adjoining offices in Prescott St accommodate two national tenants. Photo / Supplied

A substantial dual-tenanted office and warehouse complex in one of Auckland’s foremost industrial suburbs has been placed on the market for sale.

The land and two-storey buildings at 9 Prescott St are being jointly marketed for sale by private treaty through Bayleys Auckland and Colliers International, with offers closing at 4pm on October 17. The property features in Bayleys’ latest Total Property portfolio magazine.

The expansive property houses a mix of high-stud warehouses and adjoining offices within 4684sq m of buildings on 5623sq m of freehold land.

The L-shaped block has an A-grade seismic rating and will shortly be generating annual rent of $646,194 plus GST from leases assigned to two large companies.

The property’s split commercial tenancy schedule consists of:

  • telecommunications systems design and installation company UCG - on a five-year lease commencing in December and running until 2023, with two further four-year rights of renewal, paying annual net rent of $500,000 plus GST; and
  • supply chain firm Reynolds Group on a lease running to 2024, with three three-year rights of renewal, paying annual net rent of $146,194 plus GST.

UCG’s presence within block will encompass 1906sq m of medium-stud warehousing space accessed by two large roller doors, 1463sq m of office and showroom space and 59 car parks. The company’s pending new occupancy replaces that of an engineering firm and a commercial refrigeration installation company.

Reynolds Group occupies a 418sq m warehouse, 405sq m of recently refurbished open-plan office space — including staff amenities; a 43.8sq m dangerous goods space and 18 car parks.

Bayleys Auckland salespeople Greg Hall and James Hill say the land is zoned Business-Heavy Industry under the partly operative Auckland Unitary Plan.

The zoning allows for tenancies with business activities that may produce dust or noise emissions, and for businesses with heavy vehicle or high traffic volumes requiring to be near freight routes.

“This appropriate zoning dovetails exactly into the activities of both UCG and Reynolds Group — which is why both have committed to long leases on their respective office and warehouse spaces,” says Hall.

“The site’s angled car parking configuration allows for a efficient use of forecourt space — maximising rent returns and allowing staff to park their vehicles off-road. Additional UCG staff parking is underneath its warehouse.”

Hill says the property has been well maintained, most recently with the refurbishment of some of the office space to accommodate UCG moving into the site.

This has enabled the owner to ensure per square metre rental rates are in line with averages for the location and the type of building.

Ben Herlihy of Colliers says the Prescott St cul-de-sac contains similarly-styled medium-to-large industrial premises.

“Properties of this nature in this locale have long been prized for close access to main arterial routes and motorway links north, south, and to the airport,” he says.