It’s a property of such rarity that facilities of its type only come to the market infrequently: with a total lettable area of 42,270sqm, including 20,150sqm of high stud warehouse, this purpose-built logistics facility in Otahuhu has a sought-after rail siding that connects the site directly with the national rail network and major logistics hubs, including Ports of Auckland and Tauranga, the Wiri inland port, Auckland Airport, and the Auckland CBD. Its sheer scale, which includes accommodating nine 50-foot rail wagons at once under a 5,470sqm enclosed rail siding canopy, makes it one of the largest warehousing sites with rail access in the entire Auckland region.

Exclusively appointed to market the property for sublease at 113 Savill Drive is the Auckland industrial team of Savills New Zealand, which is working with the lease holder to find the perfect tenant – or tenants. The scale of the property is such that it gives an unusual variety of options: the lease holder may occupy some of the site and share with another tenant, or it may be divvied up among one or more new occupants.

The current lease runs until the end of 2032, with a right of renewal until 2050, as is standard for a property of this size. The zoning is heavy industrial and the property is available from August 2024.

Savills New Zealand launched the property to market on 1 March, and Tom Cooper, the head of industrial sales and leasing in Auckland, says properties of this type are tightly held. “This is a big deal, in both senses of the world, because a property like this comes to market very rarely.

“We launched it on 1 March and the phones have been running hot – there is interest from multinationals, particularly from Australia, and import-export and logistics operators. We are currently taking expressions of interest and will review those with the lease holder and make decisions from there.

“What we are hearing in our initial conversations reflects what we have observed of the leasing market in the opening weeks of 2024. As the economy has slowed there has been a cooling off of this part of the market from the unprecedented highs of the past two to three years. Because of that high, it is heading back to normality rather than dipping into negative territory, and there is a good amount of interest in and competition for larger warehousing sites in prime locations.”

In general, says Paddy Callesen, director of industrial sales and leasing in Auckland, the Savills industrial team is shepherding a lot of large deals, both on-market and off, for clients who prefer a more discreet approach to business activity. “Some specialist deals stay below the radar and for others, such as this one, the client asks us to go out widely, including overseas.

“For those who are showing interest in 113 Savill Drive, it is about long-term planning and the opportunity cost of not taking the site, or part of it, when it is available. If a competitor takes it, it might not come up again for another 25 years. We are actively engaging with the likes of high-volume importers and exporters, logistics and freight providers, and Australian and multinational companies looking at coming into the New Zealand market.”

A 42,270sqm rail-connected Otahuhu Auckland NZ multi-national logistics facility for sub lease by Savills