Industrial property with development potential sells for $1.35 million at NAI Harcourts auction

14-Apr-2015 01:27:17

35 Porana Rd Drone High - with outline

Above: Aerial view of Wairau Valley industrial area

A factory/warehouse in Wairau Valley on Auckland’s North Shore has sold at auction for $1.35 million.

The capital valuation for the property was $890,000.

35 Porana Road was auctioned at NAI Harcourts auction room in Takapuna on Wednesday 1 April. The property was marketed by Tim Turner and Marty van Barneveld of NAI Harcourts North Shore.

Tim Turner says that the 1707 square metre freehold property was hotly contested at auction with around nine groups actively bidding for the lot.

“We saw the evidence of this property’s wide appeal to a range of buyers from those looking to benefit from earnings from the existing tenant, to those looking for land for development, and owner occupiers wanting to secure property in an area that is expected to undergo residential and commercial expansion,” says Turner.

The existing tenant, a metal fabrication business, signed a two year lease commencing 1 March for $67,700+GST per annum.

35 Porana Road, Glenfield, comprises a freehold site of 1,707m square metre with a factory/warehouse covering 535 square metres and office/amenities of 80 square metres. The remaining approximately two-thirds of the land is undeveloped.

Turner says that low vacancy rates and development potential helped to drive the sale price for 35 Porana Road above expectation. The successful bidder is an owner occupier.

“We have a strong economic outlook and as confidence grows more businesses are looking for space to expand their operations. But with vacancy in this area at very low levels they are really struggling to find the space they need to grow.

“This area of the North Shore is under-going redevelopment with many buildings being refurbished or demolished for more intensive business uses. As demand for property in the Auckland area continues to outstrip supply, I think we’re going to see this trend continue,” says Turner.

“Wairau Valley is an area that is undergoing commercial expansion, and with changes proposed under the Auckland Unitary Plan – whether they happen or not, commercial interests are looking to secure their spot in the area.”

35 Porana Road is zoned Business 9 under the Auckland District Council Plan and Light Industrial under the Auckland Council Proposed Unitary Plan.

Press Release, Nai Harcourts - Commercial