Industrial Penrose with proven formula

An established industrial investment property in one of Auckland’s most strategically connected precincts is now on the market, giving investors access to a proven location defined by consistent demand, plus an asset with strong tenant commitment and reliable long-term returns.

The property at 74–76 Leonard Road, Penrose is occupied by The Cosmetic Company NZ, a business that has operated in Auckland for more than 30 years utilising internationally recognised technologies. The business continues to invest heavily in its production, laboratory, and development infrastructure, building a strong reputation in research, formulation, and contract manufacturing for both domestic and international cosmetic and skincare brands.

The well-presented midsized industrial asset on a 2,595sqm freehold site comprises a standalone double-gabled 2,655sqm facility with specialised production zones, development labs, warehousing, and office accommodation over two levels. Recent upgrades include partial roof replacement with a landlord warranty to complete, refreshed exterior presentation, and continued tenant investment into internal improvements. The property has dual access off Leonard Road, 15 on-site car parks to the side and front of the building, and the clear-span warehousing has roller doors at both ends for efficient day-to-day operations.

The Cosmetic Company’s long-term commitment to the site is underpinned by a 10-year lease commencing 1 April 2025, annual CPI rent reviews, a market review in year three, and a six-month bank guarantee. With one further six-year renewal, the lease structure provides investors with secure income through to a potential final expiry of 2037, and built-in rental uplift.

The property is for sale by deadline private treaty closing 4pm, Thursday 10th September, unless sold prior, through Layne Harwood and James Valintine of Bayleys.

Given the streamlined connectivity to SH1, the CBD, and Auckland Airport, Penrose and neighbouring Mt Wellington remain among Auckland’s most keenly pursued industrial locations by occupiers and investors, says Harwood.

“More specifically, the Leonard Road pocket has long been one of Auckland’s most dependable industrial precincts, with investors valuing the connectivity, the depth of occupier demand, and the stability that comes with long‑term tenants who continue to reinvest in their operations.

“The location clearly suits the long-standing occupier, with The Cosmetic Company continuing to invest heavily in specialised production and development facilities. Their reinvestment signals a firm long-term commitment to the site, and this is further reflected in the strength of the lease structure.”

Ongoing redevelopment and infrastructure upgrades are strengthening the wider precinct, with entities like Goodman Property and the James Kirkpatrick Group committing substantial capital to the immediate area. For investors, this level of reinvestment signals sustained confidence in the precinct’s future performance and supports continued uplift in both asset quality and underlying land values.

Valintine says proactive development and investment activity is helping to reshape the local industrial landscape, reinforcing the fundamentals that drive long-term value.

“Penrose and Mt Wellington consistently outperform the broader industrial market due to their centrality and transport links, and it’s one of the few industrial precincts where businesses can efficiently reach every part of Auckland.

“Assets of this type, with strong tenant covenant and modernised improvements, are increasingly sought after, and investor confidence in the area continues to strengthen.”