Industrial buyers plumbed into New Lynn

Industrial buyers plumbed into New Lynn

48 Portage Road, New Lynn, Auckland. Sold on 12th April 2017.

The Property
- 1,012m² freehold fully-fenced site with dual access and car parking
- 532m² medium stud buildings comprising warehouse with ground and upper floor offices and amenities
- Renewed four-year lease from 1st October 2016 to longstanding national tenant Plumbing World Ltd
- Currently returning $62,500pa net with built-in rental growth
- Zoned Business – Light Industry
- 70% IEP Report completed

Quick Look
- National Total Property marketing campaign with auction method of sale
- SOLD under the hammer for $1,730,000 at a 3.6% yield
- Bidding was spirited from a keen prospective buyer base with two parties eventually battling it out until the hammer fell

Overview
A well-presented industrial property which has been home to New Zealand-owned business Plumbing World for almost 30 years, got the Bayleys Central Auckland auction room fired up with lively bidding from multiple parties.

New Lynn is an evolving area within the Auckland region and provides a mix of residential, commercial, retail and light industrial property offerings. Access to major transport links including the North Western motorway system and the soon-to-be-opened Waterview Tunnel are easy from New Lynn and the subject property is handy to the New Lynn retail hub, including the Lynn Mall shopping centre and the New Lynn train station.

The buyer was a local investor who clearly saw value in the New Lynn market and appreciated the location, the tenant credentials of the property and the future of this area in the larger Auckland picture.

Vendor Comment
Vendor Julian Matthews, a seasoned commercial property investor, reckons industrial stock is the unsung hero in the property arena.

I have invested in commercial property for the past 17 years and having dipped into other sectors at various times, industrial property is now my investment preference.

I owned the Portage Road, New Lynn property for 15 years and it proved to be a good, solid, dependable addition to my portfolio.

Bottom line is, I chase yields and decided to sell that property to allow me to strategically cast my investment net further.

I’ve since purchased another industrial property which is giving me a higher yield and have every confidence that the industrial sector will continue to outperform other commercial sectors in coming years.

The way the auction for Portage Road unfolded was unbelievable and when it became clear that two interested parties were prepared to battle to the very end, it was actually quite exhilarating.

I was extremely happy with the final sale price and believe that the auction process was key to getting such a great result in the current market.


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