New Zealand Back to Real Estate News Homepage to RSS for this country

NZ Property News

NZ Former Mainzeal site up for grabs

Property Here - Wednesday, July 24, 2013

Share to:

The Wiri construction yard of failed construction company Mainzeal is being marketed for sale or lease through Savills.

"The site at 7 Bolderwood Place is owned by a private syndicate and was used by Mainzeal from 1984 but the lease has now ended," says Savills broker Bruce Webb, who is marketing the property for sale or lease with joint managing director Paddy Callesen by private treaty closing on July 31.

"The exit of Mainzeal from the 1.2ha site opens up possibilities for a new owner, a developer or a tenant," Webb says. "The financial dynamics for the site are different from what they were when it was occupied by Mainzeal. It means there is more scope for a new owner or developer to change the use of the site and its value."

Webb says a construction company could buy the site and carry on using it as a yard or an investor/developer might consider other uses, such as a unit development or subdivision of the land into four separate freehold titles as has been done on the neighbouring property.

Mainzeal, New Zealand's third-biggest construction company at the time of its receivership, bought the site from Fletcher Developments, which purchased 60ha in the 1970s and subdivided it into industrial sites in the 1980s.

The yard was quickly established by Mainzeal, which kept the block as an open-air site for construction equipment until 2000 when it developed a tiered high- and low-stud office and warehouse for truck maintenance to reduce the cost of having vehicles repaired elsewhere.

Callesen says that after 24 years of ownership Mainzeal sold the site in a sale and leaseback to the private syndicate.

"It is now being offered as vacant and will be ideal for a substantial horseshoe-shaped unit development or it could be subdivided into four separate titles of about 3000sq m each as has been done on the next-door site. Each freehold site was sold separately."

Callesen says the vendor has realistic price expectations.

"Land prices in Wiri sit at between $250 to $300 per sq m and there will be some value in the 960sq m of buildings on the site.

"If a tenant wants to lease the property we believe a rental of $260,000 per annum is in line with market rates."

He says Auckland Council's Unitary Plan proposes to provide more business-zoned land "but there is likely be a supply line delay of five to 10 years so anyone wanting business-zoned land should buy now as short-term supply shortages are inevitable".

Webb says the 480sq m steel-framed, clear span main warehouse has a stud height of 12.1m at the portal knee rising to 12.45m at the apex and includes a gantry.

"This gave Mainzeal the room to repair trucks and scissor lifts indoors. At the southeastern corner of the warehouse is a three-storey mezzanine and vehicle access is through two large roller doors at the northern and southern sides."

Adjoining the main warehouse is a 278sq m smaller warehouse and storage area with a stud height of 4.5m at the portal knee rising to 5.4m at the apex. This space is partitioned into two areas and is finished with concrete floors.

Office space runs along the front of the main warehouse and consists of a single-level open plan office and a lunchroom.

Also on the partly fenced site are additional small secure and open storage buildings as well as large sealed and unsealed yards at the front and rear of the property.

"The buildings cover just 10 per cent of the site and are in good condition and well maintained," says Webb.

"They only serviced a portion of Mainzeal's business and the rest of the site is a general 9300sq m construction yard. It is a particularly well-configured site with an excellent 80m frontage to 140m depth ratio and has the ideal characteristics for redevelopment, particularly as it has the sought-after Auckland Council business six zoning that allows heavy industrial activity."

Webb says the Wiri industrial zone is the fastest-growing commercial zone in Auckland, with the large Manukau labour force on the doorstep.

"Access to the SH1 and SH20 motorways linking to Auckland airport and West Auckland has dramatically improved the area's ability to provide logistics and manufacturing companies with ready access in all directions."