Drury industrial property suits new owner down to the ground

The Property
• 6,124sqm landholding zoned Light Industrial
• 282sqm buildings
• Huge motorway exposure to SH1 and excellent access north and south
• Sold with vacant possession

Quick Look
• National Total Property marketing campaign – by auction
• Interest generated via Bayleys’ databases, New Zealand Herald, Franklin Property Press and Total Property magazine
• More than 50 genuine enquiries
• 10 bidders in the room on auction day
• SOLD for $3,450,000
• Purchased by a local earthworks company as its operational base

The Story

A large tract of land smack bang in the middle of one of New Zealand’s fastest-growing areas was always going to light up buyers’ eyes, but agents marketing this property in Tegal Road, Drury, said they were staggered at the volume of interest shown once the marketing campaign got underway.

Shane Snijder of Bayleys Pukekohe, and James Hill, Bayleys South Auckland, marketed the property with the auction campaign attracting huge attention.

“A generous freehold industrial-zoned site in one of the country’s development hotspots is like gold to the right buyer,” said Shane.

“The broader Drury area is benefitting from massive government spend on infrastructure and, when coupled with the commitment being shown by proactive developers like Stevensons and Kiwi Properties, this underpins the value of Drury as a place to invest in.”

The industrial sector continues to outperform other property sectors on both a return on investment and capital gains basis.

“There’s a chronic shortage of industrially-zoned land Auckland-wide and investors, developers and owner-occupiers are having to extend their usual geographical parameters to secure what they want.

“The buyer of this Tegal Road property is a local earthworks company that is involved with significant work in the area, so it literally suits them down to the ground.”

Vendor Comment

The vendor, Stu Cable, said the sales price achieved at auction blew his expectations out of the water.

Having owned the property for 11 years, Stu said he’s seen the Drury area change exponentially.

It was clear to him that with rezoning to Light Industrial, the property at Tegal Road would have a different future from the one they’d perceived over a decade ago.

“We’ve operated a family business from the property for the past few years and given the demand for industrial property and the potential this site would have for a new owner, we decided to sell earlier this year,” he said.

With 10 active bidders on auction day, it was always going to be a competitive selling situation.

Stu said he thought that on an exceptionally good day, the land could attract around $500 per sqm.

“Ultimately, with competition among the bidders, we ended up with around $500,000 more than we realistically thought we would get for the property.

“That’s a great result and shows the value placed on well-located industrial land in the Auckland region and reflects a well-run campaign to find the right buyer.”

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