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Brownfields land with silver lining

To be sold with vacant possession, the 5.12 hectare Business-Light Industry zoned site in the established Silverdale industrial precinct has been the base for multiple occupiers for many years and currently sustains 11 businesses, including engineering, construction, and automotive occupiers.

Bayleys’ agents marketing the property said they understand that while there are no formal leases in place, the majority of the occupiers have a 30-day notice period, with the property returning an annual income of around $310,000 per annum, inclusive of GST.

The property has good profile too, and multiple access points from, Forge Road on the southern boundary and Tavern Road on the western boundary.

It is bounded to the east and south by established industrial and commercial properties with high-profile occupiers including Bunnings, Placemakers, National Storage, Mighty Ape, and PAK'n SAVE.

There are a number of portal-framed buildings on the site, along with internal roads, a series of terraced platforms and hardstand areas, and existing services, while those portions that have been cleared give an indication of the scale of the building platforms available.

Peta Laery and Matt Mimmack, Bayleys North Shore Commercial and Ben Clare, Bayleys Silverdale are taking the property through a tender campaign closing Tuesday 22nd March, unless sold prior.

Laery said “mammoth demand” for industrial property in Auckland shows no signs of easing off, with Bayleys’ latest industrial data showing just 1.6 percent vacancy in the region.

“It’s even tighter than that in Silverdale, where we understand there’s around sub-1-percent vacancy in the industrial sector.

“That’s led to an excruciatingly-constrained market, and larger occupiers in particular are finding they have nowhere to move when they need to expand or relocate for efficiencies.

Laery said the vendors had considerable foresight to acquire this and other landholdings with scale in the area, given that decades ago, Silverdale and surrounds was essentially a service point for local farmers.

“Silverdale is no longer a hinterland, with development and infrastructural improvements closing the gap between city and country.

“The subject property in Tavern Road is only 1.2km to on and off ramps for State Highways 1 and 16, and handy to the Hibiscus Coast park ‘n’ ride facility.

“The site lends itself to an innovative masterplan to optimise the value of the land, and its place in the industrial landscape and also has the potential for subdivision into smaller holdings.

“Sales and occupier trends show massive demand for industrial business parks with purpose-built functional units for tradespeople, storage and e-commerce operators and a new owner could feasibly develop one side of the landholding into a business park, while still leaving enough room for some pretty sizeable standalone buildings for larger businesses.”

Mimmack said any number of layout configurations would be possible on the versatile site, with multiple entry points adding to the potential for those in the manufacturing, distribution, storage, logistics and transport game for starters.

“Going by demand for premises from industrial and commercial occupiers, if this site was developed, it would fill up in a heartbeat.

“Driven by the halo effect of the Auckland market, the broader Silverdale area - encompassing the neighbouring residential satellite precincts of Millwater and Milldale – is one of the fastest growing areas in New Zealand.

“There’s been massive commercial development, escalating demand for homes, and a new retirement village is underway.”

Mimmack said heavyweight corporates recognise the potential that Silverdale offers on the back of roading improvements, population growth and the widespread increase in amenity on offer.

“ASX-listed Canberra Data Centres, half-owned by Infratil, identified Silverdale as a key part of its growth strategy, acquiring a large site to build one of two world-class hyperscale data centres and that’s just the tip of the development iceberg.

“The persistent shortage of industrial land for sale has been a tangible handbrake for developers and larger owner-occupiers, and we expect them to sit up and take note of the land in Tavern Road given the scope of development possible on a site of this size.”

Click here for more information on the listing.

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