Drury Industrial Asset Powers Long-Term Returns

A new 12-year lease to Genesis Energy Limited underpins the sale of a purpose-built industrial asset in one of Auckland’s fastest evolving growth corridors, giving investors access to one of the most hands-off, low-maintenance properties currently available in the market.

23 Toiawaka Road, Drury sits within the newest industrial subdivision in Drury South, a precinct seeing extensive infrastructure investment, and rising demand for high-quality logistics and service-based facilities, supported by large-scale residential expansion.

The freehold 5,000sqm site comprises a modern, low-maintenance industrial facility configured specifically for Genesis Energy’s LPG storage and distribution operations. Improvements include bulk gas storage tanks, specialised handling infrastructure and rebottling facilities, supported by a fully sealed 4,873sqm concrete yard and 127sqm of office and staff amenities.

Genesis Energy operates under a mixed-ownership model, with the government having a 51 percent shareholding, and is dual-listed on the NZX and ASX.

The property generates net annual rental income of $376,383 plus GST, with the new 12-year lease from May 2026 running through to 30 April 2038, and two further six-year rights of renewal extending the final expiry to 2050. The lease includes fixed annual increases of three percent, with market reviews scheduled for 2032, 2038 and 2044.

Toiawaka Road connects directly to Bill Stevenson Drive, placing the site among established operators including Zeal Pet Food, NZ Safety Blackwoods, Cardinal Logistics and Metspray, with a future Bunnings location earmarked nearby. The Business Light Industry zoning supports a wide range of industrial activities, including logistics, storage, manufacturing and distribution, ensuring strong future occupier demand.

Roman van Uden and Jean-Paul Smit, Bayleys South Auckland are marketing the property, with the deadline private treaty campaign closing Thursday 30th July, unless sold prior.

The property provides access to a bottom-drawer investment in an industrial precinct characterised by strengthening occupier demand, says van Uden.

“Assets of this quality, with long-term leases to investment-grade occupiers, are increasingly difficult for private investors to access.

“Genesis has invested substantial capital into the facility, demonstrating its operational significance and long-term value to the business.

“The customised infrastructure enables a streamlined LPG storage and distribution operation that supplies residential and commercial customers across the region, and the depth of these improvements confirms the site’s essential role in Genesis Energy’s ongoing service delivery.”

Drury South is experiencing unprecedented growth, supported by major transport upgrades including the Mill Road corridor, the Papakura to Drury improvements on State Highway 1 and the development of new link roads connecting Paerata, Pukekohe, Papakura and Takanini.

The fundamentals of the Toiawaka Drive location for industrial occupiers will continue to strengthen as the southern corridor evolves, says van Uden.

“Drury South is becoming one of Auckland’s most strategically important industrial hubs. With new transport connections, large-scale development and sustained occupier demand, properties like this are exceptionally well-positioned for long-term value growth.”

The wider Drury area is projected to grow from 193,000 residents to approximately 353,000 over the next 20 years, driven by master-planned developments such as Drury South Crossing, Auranga and Drury East.