Industrial premises in new greenfields development in East Tamaki offered for lease

23 July 2018

Businesses are being offered the opportunity to lease new, state of the art premises in an industrial park being developed in East Tamaki, Auckland.

Savills industrial brokers Damon Wyllie and David Arlidge, who have recently joined Savills Auckland industrial team led by Paddy Callesen, are offering tenants several options in the new development, being constructed on a four hectare site at 27 Smales Road.

Owner Synergy Properties, fronted by Martyn and Aaron Brown, is building a well-considered development on the site which will offer modern, efficient and functional industrial accommodation in a highly sought-after location close to the well-known Highbrook Business Park,” says Wyllie.

Once complete, the development will add some 22,000sq m of warehouse and office space to the supply-starved East Tamaki industrial market, he says.

“Given the very restricted supply of industrial space in Auckland, especially in centrally-located precincts like East Tamaki, we’re already receiving interest from prospective tenants in this new business park.”

Large development sites like 27 Smales Road have become increasingly scarce across Auckland and demand for developed industrial property is expected to remain very strong with vacancy extremely low, Arlidge says.

“East Tamaki’s central location and good transport links have made it one of the most highly sought-after industrial areas in Auckland. This has resulted in few options becoming available to businesses looking to move. As such we’re expecting this development to be taken up quickly, owing to the good choice of high-quality options it offers.”

Synergy Properties is constructing a range of building sizes; from units suited to small to medium-sized enterprises right through to large, high stud, modern industrial warehouse and office facilities.

“There is something here for a variety of industrial property occupiers. For businesses wanting to upgrade to new premises, yet still be located within easy reach of the city centre and the airport, this is a compelling proposition,” says Arlidge.

Construction is now underway on stage one of the development, which comprises 9,000sq m of buildings. Projects underway include a large 3,565sq m warehouse and office facility, five smaller warehouse units of 767sq m to 1,118sq m in size, and a café.

Stage one is expected to be ready to occupy by the middle of 2019. Stage two, which is set to add a further 13,000sq m of buildings to the development, will give companies looking for a turn-key design build solution the option to lease a purpose-built facility on the western side of the site.

Once complete, the development will have three vehicle access points to Smales Road, with the estate positioned mid-way between two key local arterial routes: Harris Road and Te Irirangi Drive. It will feature an internal dual carriageway with a large turning circle, providing direct access to all the buildings. Entrance to the estate will be fenced and gated with tenant-only access after hours. Ample car parking will also be provided.

Martyn Brown says Synergy Properties purchased the site at 27 Smales Road in June 2015 with a leaseback arrangement in place to the vendor, Fletcher Concrete and Infrastructure.

“We considered the site highly desirable as a development proposition based on its excellent location in a high-demand area, and the two-year lease back to Fletchers made the purchase a no-brainer,” he says.

Fletchers operated a Firth concrete plant on the site until October 2017. Following Fletchers’ departure Synergy immediately commenced site works to level and metal the property, with works for stage one of the project completed at the end of April this year.

Synergy Properties, which has been undertaking property developments for over 20 years, owns the properties it develops for the long term, says Arlidge.

“This strategy allows the group to develop with the future in mind, instead of tomorrow’s profit margin. Synergy has a long history of developing office and warehouse facilities and they understand the key factors that make these buildings work to optimal efficiency.”

The development at 27 Smales Road will feature high-strength warehouse floors, extra-wide roller doors and high cubic capacity within the warehouses, says Aaron Brown.

“Each building, even the smaller units, will also have a dedicated hard-stand yard area to accommodate 40-foot containers and vehicle movements. We have also taken care to design the development in a way that facilitates easy access for trucks.”

Synergy’s developments have traditionally been in the industrial sector, but the group has also delivered retail and showroom properties including the 6,500sq m Home Base Botany centre; office blocks including 7a Pacific Rise, Mt Wellington (occupied by Asure Quality) and a Motorlodge hotel in Rotorua, trading as Regal Palms.

The 27 Smales industrial estate is Synergy’s largest project to date with an estimated end value of over $70m, Arlidge says.

“Synergy Properties has an excellent track record of property development and a long list of satisfied occupiers, who are all very happy with the quality of construction and ongoing management of the buildings.”

The development is located a short drive to the Southern Motorway interchanges at Highbrook and Otara, offering occupiers excellent transport access, says Wyllie.

“East Tamaki offers quick and easy links to State Highway One, providing access to Auckland CBD, the port and the international airport. Recent large scale developments at Highbrook and Eastfield are proving the area's status as a premium location for industrial occupiers, with a roll-call of blue chip businesses including Fisher & Paykel, Steel & Tube, OfficeMax, NZ Post and United Industries operating there.”

 
 

Key Contacts

Damon Wyllie

Damon Wyllie

Associate Director
Industrial & Business Services

Savills Auckland

+64 (0) 9 307 4532

 

David Arlidge

David Arlidge

Director
Industrial & Business Services

Savills Auckland

+64 (0) 9 307 4626