New Dury investment delivers well-cushioned lease

A new high-spec industrial facility in one of South Auckland’s principal growth areas is being offered for sale, pairing a 12-year lease to a national manufacturer with contracted annual income growth, Bayleys brokers say.

Bayleys South Auckland Commercial and Industrial Sales and Leasing director, Paul Steele, together with colleague Greg Hall, is marketing Building A at 75 Waikura Road for sale by deadline, closing at 2:00 pm on Thursday, 10th September 2026 (unless sold prior).

The offering comprises 5,699sqm of warehouse and office accommodation on a 1.74ha (more or less) freehold site, purpose-built for mattress manufacturer Slumberzone New Zealand, secured by a lease generating $1.38 million in net annual income commencing 1 February 2027.

The initial lease runs for 12 years to 2039, with two further six year renewal rights providing a potential tenure through to 2051. Favourable lease provisions include fixed annual rent increases of three percent, market reviews every four years and bank bond security.

Steele says this structure gives investors visibility over both the duration and progression of income from a newly completed asset.

“Purpose-built for its occupier and underpinned by a long-dated lease, the facility brings together modern industrial capability and a clearly defined income path. Investors are acquiring a new-generation industrial premises with a defined income profile and an established tenant already committed to the site.

“That combination allows investors to assess the property principally on the quality and durability of its income, rather than a near-term repositioning strategy.”

The premises comprise approximately 5,261sqm of high-stud warehousing and 438sqm of premium office accommodation, supported by 1,931sqm of canopy and 36 car parks. Its large, covered areas provide additional operational capacity for loading and movement in all weather, while the predominantly warehouse-based configuration directs most of the floor area towards productive use.

The property is zoned Business – Light Industry, supporting manufacturing, production, storage, logistics, transport and distribution activities.

The tenant, Slumberzone, is an established New Zealand mattress manufacturer producing a range of products distributed through a national network of more than 70 retail partners.

The property is offered to the market as confidence increases across New Zealand’s industrial market. Bayleys’ latest sector analysis suggests sublease inventory has been absorbed, occupier decisions are progressing and private and offshore capital is seeking well-structured opportunities.

Bayleys South Auckland Commercial and Industrial Sales and Leasing director Greg Hall says against that backdrop, attention is shifting from broad sector exposure to the quality of individual buildings and leases.

“Investors are examining how closely a property reflects the operational requirements of its occupier, how readily its configuration will remain relevant and where future income growth comes from,” he says.

“Purpose-built facilities can create a particularly strong alignment between tenant and property. The occupier has premises designed around its production and distribution requirements while the owner benefits from that long-term commitment to the location.”

Drury adds a longer-term geographic dimension. Once regarded primarily as Auckland’s southern boundary, the area is developing into a significant residential, employment and commercial node, supported by planned urbanisation and transport investment.

Its position near State Highway 1 places businesses between Auckland’s principal population base and the freight routes extending south through Hamilton and Tauranga. For manufacturers and distributors, that means access to both metropolitan customers and the wider upper North Island market.

Hall says that combination of industrial capability and regional connectivity is strengthening Drury’s role within Auckland’s property landscape. “Drury is a place where businesses can secure the scale required for modern operations while remaining connected throughout Auckland and the Golden Triangle.”

“The subject property translates that story into an investable proposition: a facility created for productive use, supported by a lease structure that converts the tenant’s commitment into a defined long-term income,” he says.