Investors double down on industrial performance

Two prime industrial investments in Auckland’s tightly held Mt Wellington business precinct are generating a buzz amongst investors with the opportunity to acquire one or both assets - each underpinned by long leases to blue-chip occupiers in a location experiencing sustained growth and low vacancy, Bayleys brokers say.

Bayleys South Auckland director James Hill, together with colleagues Sunil Bhana and James Valintine, is marketing 505 and 507 Mt Wellington Highway for sale individually or as a combined parcel, by deadline, closing at 2pm on Thursday, 6th November 2025 (unless sold prior).

Together, the freehold properties, each on its own title, provide a combined landholding of 1.376ha (more or less) and a total net income of $2,069,347 per annum plus GST.

Hill says the larger site at 505 Mt Wellington Highway is leased to JA Russell - one of New Zealand’s leading electrical suppliers - returning $1,013,597 per annum plus GST on a lease to 2031, with renewals extending to 2049.

“Immediately next door, 507 Mt Wellington Highway is occupied by global healthcare leader, Johnson & Johnson, returning $1,055,750 per annum plus GST under a lease to 2030 with a further six-year renewal right.

“Both properties have undergone significant refurbishment and extension to meet tenant requirements, delivering high-quality, institutional-grade improvements that demonstrate the commitment of the blue-chip occupiers.”

The JA Russell facility occupies a 9,251sqm (more or less) site and features modern offices, high-stud warehousing, generous yard space, and extensive car parking. The brokers say the layout sustains efficient distribution and long-term tenant retention.

Johnson & Johnson’s corporate headquarters sits on circa 4,513sqm of land and was comprehensively redeveloped to global standards. The building offers two levels of high-spec office space linked by an atrium, with warehousing to the rear.

Bayleys South Auckland director Sunil Bhana says the offerings embody the themes driving investor demand in the current market cycle.

“We continue to see a flight to quality assets with secure income profiles and strong tenant covenants. Well-located industrial property has been a resilient performer, supported by structural demand from logistics, manufacturing, and service industries that value proximity to major transport networks,” he says

“Situated within Business - Light Industry Zone, the properties offer excellent connectivity to State Highway 1 via the Mt Wellington interchange and are surrounded by a high concentration of national and multinational occupiers.”

Bhana notes that the locational advantage is reinforced by proximity to established residential catchments, providing strong workforce accessibility, excellent public transport links, and growth dynamics that are expected to support long-term capital appreciation.

“Industrial vacancy in Mt Wellington remains among the lowest in Auckland, underpinned by constrained land supply and ongoing demand from occupiers seeking central connectivity.

“Twin opportunities of this calibre are extremely rare. The properties combine the hallmarks of defensive investment - quality tenants, secure income, and exceptional location - with long-term strategic value in one of Auckland’s most desirable industrial corridors,” he says.