Prime Pukekohe industrial offering

The Property
• 6,113sqm land supporting near-new 3,644sqm trade/retail warehousing and amenities for building supplies’ tenant, Bunnings
• Features undercover trade drive-through area, and plenty of onsite carparking
• Fully-occupied by Bunnings Trade Centre, with new 7-year lease commencing April 2022
• Annual net rental of $461,250 + GST and OPEX
• Zoned Light Industrial

Quick Look
• National Total Property marketing campaign – sold by auction
• Interest generated via Bayleys’ databases and Total Property magazine
• 33 enquiries from well-resourced and mainly local buyers
• SOLD under the hammer for $8,000,000 at a 5.76 percent yield
• Purchased by an Auckland businessman with ties to the area

The Story

This prime industrial investment property in Pukekohe, had plenty going for it according to Shane Snijder, Bayleys Pukekohe who took it through two auction campaigns.

“The property was built for well-established international occupier Bunnings which expanded into the building in 2022.

“It’s well-placed to support increased building activity in the broader area, with Pukekohe coming of age with some huge development projects nearing completion, or well underway to support the growing population.

“Pukekohe is identified by Auckland Council as a priority growth satellite town, and is now acknowledged as one of the country’s fastest-growing communities.

“There’s been tight supply of prime commercial property in Pukekohe, and this recently-built Crosbie Street property was a real standout.”

Major projects under construction in the area include Stevensons’ Drury South Industrial Park, and the Paerata Rise residential precinct which will provide 4500 new homes.

News that Fisher and Paykel Healthcare has purchased 104ha on Karaka Road for a new second campus to complement its existing East Tāmaki facility, shows the level of confidence seen in the area by major players.

“We’ve all witnessed the industrial market going great guns over the last few years on the back of ecommerce growth, the popularity of large format retailing and construction sector activity,” said Snijder.

“However, price-wise we’ve seen giddying high property prices taper off a bit due to rising inflation, interest rate hikes and fallout from recent weather events.

“While this property didn’t quite meet vendor expectations on price, the market spoke and it was still a very good outcome with the new owner set to benefit from having Bunnings as a tenant, with a long lease and built-in rental growth.”

Vendor Comment

Bruce McKenzie and Paul Reidy, of Pukekohe-based construction company REMACK Limited, said Bayleys’ professional representation was behind the decision to engage the firm to sell this standout industrial investment.

Having developed the site and purpose-built the property specifically for Bunnings, McKenzie said the intention was always to sell the building once the major supplier to project builders, commercial tradespeople and the housing industry had settled in

He said the decision to list the property with Bayleys was well-considered.

“We liked their professional presentation and representation.

“Although the sale price was around 15 percent below what we had anticipated, the campaign was managed well and the Bayleys’ service was everything we expected it to be.”

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