Industrial triple net lease with passive income

A significant industrial property at the centre of Auckland’s largest manufacturing and logistics hub is being brought to market, presenting investors with an opportunity to secure hands-off income backed by a triple-net lease and strategically positioned, development-capable landholding.

Bayleys commercial and industrial sales and leasing director Matt Mimmack, together with colleagues James Hill and Michael Nees, is marketing the freehold property at 100 Kerwyn Avenue for sale by deadline closing at 4:00 pm on Thursday, 12th March 2026 (unless sold prior).

The property is entirely leased to Mr Chips – a long-established national food manufacturer – and returns $1,537,035 per annum plus GST and outgoings under a lease running through to December 2031, with a further six-year renewal right.

Mimmack says the offering comes amid increasing demand for institutional-style industrial investments where income certainty, tenant quality and underlying land value combine to create durable long-term performance.

“Investors are keyed into assets that minimise management intensity while providing predictable growth. Tripe-net structures, particularly those secured by operationally embedded tenants, are among the most sought-after opportunities in the current market.”

The lease incorporates annual rental growth based on the greater of two percent or CPI, ensuring income progression regardless of inflation. A 24-month bank guarantee from local agricultural leader, Balle Bros Foods, further underpins the covenant strength.

Comprising approximately 9,340sqm of improvements on a 2.617ha site, the property includes a dedicated potato receiving and grading facility, two manufacturing buildings, freezer and chiller capacity, warehousing and administrative offices – a specialised configuration reflecting the tenant’s long-term operational commitment.

Bayleys South Auckland commercial and industrial sales and leasing director James Hill says that low site coverage, three street crossings and full drive around access enhance functionality for the site while preserving flexibility for future development or expansion, subject to necessary approvals.

“Large industrial landholdings in established precincts are increasingly difficult to replicate,” he says. “Landholdings of this size, with wide frontage and several access points, offer significant versatility as capital growth accelerates.”

East Tāmaki remains Auckland’s pre-eminent industrial location, hosting a cluster of manufacturing, logistics and distribution businesses that collectively form a critical component of the region’s economic infrastructure.

Hill says proximity to the Southern Motorway and the Highbrook interchange enables efficient freight movement to the airport, ports and wider metropolitan area, reinforcing tenant demand and long-term relevance.

“Vacancy across prime industrial stock in the area remains structurally constrained, supporting rental growth and underpinning investor confidence in the sector.”

The property’s corner positioning provides strong visibility and accessibility, attributes particularly valued by occupiers requiring high-capacity vehicle movements and operational efficiency.

Beyond its immediate income characteristics, the scale of the landholding offers strategic appeal for future intensification or reconfiguration as industrial requirements evolve over time.

“Institutional capital and private investors are seeking assets that deliver stable cash flow while retaining the ability to adapt tomorrow,” says Hill.

“The subject property provides both secure long-term tenure to an established operator and a substantial freehold site capable of supporting alternative uses in the future.

“With strong connectivity, embedded tenant investment and a lease structure under which the tenant meets outgoings, the property offers a true passive investment profile in a sector widely regarded as one of the most resilient market segments,” he adds.