A fully leased industrial showroom and warehousing property at the western end of Kingsland’s busy retail and commercial strip is now for sale following a comprehensive refurbishment programme and seismic upgrade in 2020 that revitalised the well-located asset.

Owned by NZPM Properties Limited, the parent company of New Zealand-owned national plumbing supplies merchant Plumbing World, which has 58 outlets throughout New Zealand, the two-level 854sqm building at 383 New North Road now has a seismic rating above 67 percent of the new building standard and presents a streamlined face to the main arterial in the sought-after city fringe suburb.

On offer is a high-spec showroom visible from New North Road through floor-to-ceiling glazing with a ground-floor office below. A high-stud warehouse is accessible via the showroom/office entrance or off New Bond Street, with the dual access property having off-street carparking in front of the showroom, along with trade/warehouse carparking off New Bond Street.

The circa-1,089sqm freehold landholding is in two titles and zoned Business - Mixed Use, with development up to 16 metres allowable.

A new 10-year lease is in place to Plumbing World, returning annual net income of $261,600 plus GST, with a further three, five-year rights of renewal and fixed annual growth throughout the lease term.

Damien Bullick and Alan Haydock of Bayleys Auckland Metro team have been appointed to sell the property via tender, closing Tuesday 16th September.

Properties like this with over 1,000sqm of land and strong tenant covenants are highly sought after, says Bullick, and typically sell well.

“Investors are back in the market with interest rates trending downwards, and given there’s a wall of cash rolling off term deposits with money in the bank seeing declining real returns now, well-leased commercial property offers a good investment option for those seeking income.

“The inner-west location is eminently suitable for a trade depot and suits Plumbing World, with the commitment to a new 10-year lease reflective of the site’s commercial viability.”

Bullick says, looking well beyond the current lease structure, the long-term development credentials of the site, given its Business – Mixed Use zoning, are compelling and further strengthen the value proposition.

“Suburbs like Kingsland will benefit from the government's recent directive to allow 15-storey apartments near train stations to leverage connectivity in areas where there is a high level of amenity.

“Kingsland train station is roughly a six-minute walk from the subject property, and the favourable zoning of the site would lend itself to intensification in the future.

“The nearby NXN Kingsland apartment and terrace housing development that Bayleys sold down several years ago is a model that has worked well in this area and is typical of what could be done on a site of this size.”