Split-risk strength in South Auckland growth hub

A recently refurbished, fully tenanted industrial facility in Papakura’s established commercial precinct provides investors with an opportunity to secure long-term stability in one of Auckland’s fastest-evolving growth corridors, Bayleys brokers say.

Bayleys South Auckland industrial sales specialists Roman van Uden and Tom Doyle are marketing the freehold property at 15 Porchester Road, for sale by deadline, closing at 4pm on Thursday 29th October 2025 (unless sold prior).

The asset comprises a 1,494sqm split-risk facility on a 2,142sqm (more or less) site. It generates a combined net annual income of $236,320 plus GST, underpinned by leases to two established tenants in the training and facilities management sectors.

The offering is further enhanced by the option to acquire the neighbouring property at 13 Porchester Road, which is also fully tenanted.

Van Uden says that together, the properties present an opportunity to achieve greater scale, security and long-term investment flexibility in an area where sizeable freehold landholdings are increasingly scarce.

The property at 15 Porchester Road has been subject to a comprehensive refurbishment, including modernised office and amenity spaces, with fit-outs tailored to occupier requirements.

It is home to the Great South Dance Academy (GSDA) – South Auckland’s largest dance school, and Rapid Facilities Services, a nationwide provider of facilities management, maintenance, and industrial cleaning services with contracts to Coca-Cola, Tegel, and Fonterra.

Both occupiers have recently recommitted to new long-term leases. Collectively, these agreements deliver a seven-year Weighted Average Lease Term (WALT), incorporating fixed rental growth and market review mechanisms.

Van Uden says the dual tenancy structure provides investors with split-risk income security, while the tenant mix reflects the strength of both service-oriented and lifestyle occupiers in the region.

“Tenanted industrial assets that combine stability with refurbishment quality are highly sought-after. In the current market, buyers are looking for resilient income streams, future adaptability, and well-located properties supported by structural growth fundamentals. This opportunity delivers on all three fronts.”

The property is zoned Business – Light Industry, providing long-term flexibility for a broad range of uses, including production, logistics and distribution.

Van Uden says this zoning underpins the site’s adaptability, ensuring ongoing relevance as occupier demand evolves. “With infrastructure in place and high levels of accessibility, the site is well positioned to attract quality tenants into the future.”

Papakura is undergoing a period of transformation, shaped by public and private sector investment across residential, commercial and infrastructure projects.

The subject property is located minutes from the Papakura Interchange on State Highway 1, benefitting from excellent arterial connectivity, while being closely tied to the town centre and surrounding residential catchments.

The wider South Auckland corridor – including Takanini and Drury – is also experiencing significant growth. Bayleys South Auckland’s Tom Doyle says Drury, in particular, has attracted billions of dollars of proposed investment in transport, town centre and residential infrastructure, which is expected to reshape the southern gateway to Auckland over the next decade.

“Papakura sits at the intersection of current and future demand. It is an established commercial and industrial hub, with direct exposure to the uplift that will flow on from large-scale regional development. Investors can secure a foothold now in anticipation of accelerated growth ahead.

“With a combination of tenant strength, zoning adaptability, and location within a designated growth node, the subject property and its neighbouring option represent exactly the type of split-risk industrial assets investors are re-strategising towards.”