Hanigan Drive, Mt Wellington for sale

A large, purpose-built industrial building leased to Auckland Bakeries Ltd in Mt Wellington is up for sale as an investment but with a final lease expiry date in less than five years time, the property could attract an owner occupier with a medium term vision to set up business there themselves.

Paul Dixon, of marketing agent Bayleys Auckland, says the Hannigan Drive premises come with a very good holding income and full food grade facilities, making it an attractive option long term for another food manufacturer. The property, which is part of Bayleys’ latest Greater Auckland portfolio, is being put up for tender as part of a liquidation sale.

“Properties like these are very hard to come by in this market, particularly in this sought after industrial location so close to the city, the airport and all transport routes. The replacement cost for full food handling facilities like this is very high, significantly more than you can buy them already set up,” Mr Dixon adds.

Facilities include freezers, chillers, kitchens, storage areas and plant rooms. The fixtures are being sold separately and are being offered alongside the sale of the building.

Meanwhile, Auckland Bakeries has taken a new two-year lease over the premises from March and has four rights of renewal of one year each, taking the final expiry date on its lease to February 2016. The property is producing net annual rental income of $265,000 and rent reviews are two yearly.

The building has a total gross floor area of approximately 1479 square metres plus canopies and an ancillary Skyline garage, sitting on a 3006 square metre corner site at 22 Hannigan Drive.

The rest of the site comprises on-site parking for staff and an area for maneuvering delivery trucks.
The Hannigan Drive property was purpose built in the early 1990’s as a food processing plant and was originally used by Watties New Zealand with a rear addition having been added in 1996.

The food processing part of the building has specialized metal-clad, insulated partitioning walls to nearly full stud height. Some of the food areas include new non-slip concrete flooring.

At the front, there are a significant number of partitioned and air-conditioned offices including a reception area and various amenities including a lunchroom.

Dixon says there have been a number of renovations and improvements made to the building recently including a new specialist food grade floor coating throughout the food processing areas, upgrades to the floor drainage network and the installation of new stainless steel sinks and hand basins. The refrigeration improvements have included a new condensing unit for one of the chillers and some significant maintenance work to bring all the chillers up to full operating condition.

“The building is located within the Hannigan Drive industrial estate which was created some 20 years ago. A spate of newer industrial developments having been built around it through the mid-1990’s and some new industrial unit developments have been added to the cul-de-sac in more recent times.
“These include a number of other specialist food processing/preparation companies including Kato Foods and Top Hat Meats,” Mr Dixon adds.

He believes the location has proved popular, especially for food manufacturers that produce products for the local Auckland and New Zealand markets because it is both close to transport routes and a good labour force.

The property and its fixtures are for sale by separate tender, with tenders closing on October 14.