Multi-purpose Airport Property For Sale Poised To Be A Runway Opportunity

The land and building housing a multi-purposed light industrial unit and chic residential dwelling immediately adjacent to one of New Zealand’s busiest airports has been placed on the market for sale.

The recently-built premises at 76 Ossie James Drive beside Hamilton Airport consists of a 285-square metre high-stud warehousing facility with three roller door access points, a 50- square metre office space, and a substantial 180-square metre apartment - all serviced by a secure expansive concreted yard space.

Sitting on some 2,977 square metres of land, the property at 76 Ossie James Drive is now being marketed for sale at auction on December 3 through Bayleys Hamilton. Salespeople Rebecca Bruce, Jordan Metcalfe, and David Cashmore said the commercial portions of the premises were leased to two separate tenancies - generating a combined total of $70,000 plus GST per annum.

Lead tenant, Hamilton Caravan Hire is on a lease running through to 2021 with two further two-year right of renewals, generating $48,000 plus GST per annum. The company leases part of the warehouse space, the office area, and the yard for vehicle storage.

Meanwhile, second tenant budget home food delivery service Kete Kai Limited is on a lease running through to the middle of next year with month-to-month renewal options after that, generating $22,000 plus GST per annum. The company leases a portion of the warehouse space.

The spacious open-plan one-bedroom dwelling within the property – complete with a covered 50-square metre deck area overlooking the airport runway and double car garaging - has a been appraised as rentable for $450 per week. The apartment has its own private entrance, a small fenced garden, and allocated visitor car parking.

Bruce said the multiple zones within the Ossie James Drive property meant it could be targeted by either owner-occupiers looking for business premises close to the airport, or by investors looking for diverse independent revenue streams from one location.

“As a jig-saw investment, the property contains industrial warehousing, office space, secure yard storage, and a high-quality residential dwelling. In the longer-term, these could be combined into one tenancy, or they could simply be kept in their current format and leased to multiple tenancies,” she said.

“Both tenants enjoy a good relationship with the existing landlord owner and have indicated they would both be flexible on discussing their occupancy terms with any new owner.

“The designer-style apartment is currently occupied by the vendor, but is prime for tenanting with staff working within the ever-growing Hamilton Airport precinct,” said Bruce.

With the fourth longest commercial runway in New Zealand, Hamilton Airport is the country’s second busiest airport for flight movements – recording up to 120,000 incoming and outgoing flights annually prior to Covid-19, along with 355,000 passenger movements.

The airport amenity is surrounded by numerous pilot training organisations, helicopter operations, and aviation maintenance businesses. Meanwhile, dozens of large light industry and commercial entities are also located within the 75-hectare Titanium Park precinct situated around the airports periphery.

Reflecting the airport’s long-term importance to the region, the infrastructure asset is jointly owned by the five surrounding council authorities – Hamilton City, Waikato District, Matamata-Piako, Waipa District and Otorohanga District.

The concrete tilt-slab building is constructed with steel columns and long-run roofing. The residential portion of the building at 76 Ossie James Drive sits above the office space and has its own separate entry. Entry to the two-year-old property is through secure gating.

The location is classified as Airport Business Zone under the Waipa District Council plan – allowing for commercial, retail, and industrial activities which are directly linked to the airport’s operations.

Cashmore said that with domestic tourism activities currently surging as a result of Covid-19 international travel restrictions, the substantial yard space with 76 Ossie James Drive had the ready-made capacity to grow in conjunction with tenant Hamilton Caravan Hire, or to support other Hamilton Airport infrastructure businesses – such as rental car or motorhome firms.

“The property has effectively been ‘future-proofed’ to allow for either tenant growth, or to take on larger tenants piggy-backing off the continuing rise in Hamilton Airport’s core activities and support services. As a relatively new building still in showcase condition, this sets up the property well for the long-term,” he said.

“Alternatively, the property could be used as the ultimate ‘big boys toys man cave’ – suitable for housing the likes of a car collection, aquatic and marine vehicles such as boats or jet skis, or a hobby collection.”

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