Two freehold titles of industrial land totalling 1.63 hectares and located within the wider Auckland Airport precinct, have been placed on the market for sale as its owner looks to change up its asset structure.
The properties are 3km north of the airport itself and comprise a 10,268sqm rectangular-shaped site fronting Pavilion Drive and a 6,100sqm irregularly-shaped rear site on Penihana Place. An aerial view of the combined sites when outlined, looks like a skewed figure eight with the two properties joined via an easement.
Currently operating as the Aeroparks park-and-ride facility, the vendor has an open mind about purchase options and will consider everything from a land purchase with holding income for development, medium-term passive income for investment, or the purchase of the freehold going-concern.
Aeroparks is a New Zealand-owned business which has operated from Auckland airport since 2008 and is one of two original park and ride services still operating in the precinct.
Sunil Bhana, Scott Campbell and Wayne Scurrah of Bayleys are marketing the Aeroparks landholding by deadline private treaty, with offers to be received by 4pm, Thursday 25th June.
Bhana says that while the site has significant improvements suited to the current tenant’s business needs – including asphalt yards, landscaping, perimeter fencing, lighting, office space and a generous canopy – a prospective buyer with foresight will recognise the inherent versatility of the property offering.
“Industrial land remains in tight supply across the Auckland region and with the airport precinct having a solid reputation as one of the preferred locations for a business base, we expect that market sentiment to prevail – despite the current climate,” says Bhana.
“Although airport operations and businesses directly-related to it have been temporarily impacted by the COVID-19 situation, the fundamental value proposition that the airport precinct can offer is unrivalled in the market.
“This site will make yard, transport or logistic operators sit up and take notice as finding land like this so close to the airport and other transport arterials has been a challenge in recent years.”
Campbell says as airline passenger and freight schedules start to ramp up again and the country makes tangible and Government-assisted moves to rebuild the tourism sector, the requirement for land close to airport operations will also bounce back.
“The wider airport precinct has sub-1-percent vacancy and we expect its popularity as a business base to endure,” explains Campbell.
“While there will undoubtedly be some retrenchment of space required by certain businesses largely reliant on airline movements for business viability, there will equally be other business lines seeking land for their operations close to the airport.”
Campbell goes on to stress that the industrial sector has proved to be very resilient throughout the pandemic environment – both here and overseas.
“With the logistics, warehousing, storage, and supermarket segments of the broader sector in high demand throughout the recent alert level restrictions, industrial landlords have been pretty well-insulated against any rent challenges,” he says.
“This site has intrinsic value simply because it is so accessible and adaptable for a broad-brush section of the industrial market – and this is heightened by the current owner-occupier being open to flexible tenure.
“As such, the property offers opportunities for developers, owner-occupiers, add-value investors, passive investors or business owners.”
As the country works towards a robust new domestic tourism industry, then adds a trans-Tasman component before ultimately widening that net further afield internationally, Scurrah says confidence will return to the tourism sector and expects tourism-related property in the airport precinct to retain its appeal long-term.
“In the wake of COVID-19, Auckland Airport recently announced that it is suspending work on a multi-storey carpark, Park & Ride South, which would have added more than 3,000 new car parking spaces to the airport precinct by December 2020,” he says.
“This strengthens the position of the current business’s profile in the park and ride market and so our message is talk to us and see what the options for the site are.”
The property has 83sqm of office space and a 250sqm office canopy. There are 700 parking spaces plus an 18-bay automated car stacker.
There is a lot of industrial development in the immediate vicinity, much of it undertaken by Auckland Airport Company and including import/export businesses and other airport-related occupiers.
A large supermarket/retail development fronts George Bolt Memorial Drive nearby and many logistics operators are consolidated in the area including Ceva Logistics, DHL, Toll, Mondiale and Mainfreight.
Access to the area has been improved with the extension of the Mangere Bridge and, along with the new Southwestern motorway link connecting to State Highway 1, provides for streamlined transition to Onehunga, Penrose, Mount Wellington, Manukau and Wiri.
Property address: 112 Pavilion Drive and 12 Penihana Place, Mangere, Auckland