Fresh industrial investment with essential foodservice tenant

Fresh industrial investment with essential foodservice tenant  hero

A purpose-built food distribution facility is for sale with a triple net lease to national tenant Bidfood, offering a chance to secure a premium industrial investment with sought-after essential services covenant.

The 6,177sq m freehold property at 7 Armstrong Road is conveniently located in the tightly held North Harbour industrial estate on Auckland’s North Shore.

It comprises a functional 2,690sq m standalone building with a large 635sq m canopy, dry goods store, high stud coolstore and chiller, and minimal office, along with 20 car parks.

Longstanding tenant Bidfood is partway through an eight-year lease returning $556,569 in net annual rent. Two rights of renewal of three years each extend the total term to September 2030.

The lease includes fixed annual rental increases to CPI, with market reviews on renewal in 2024 and 2027.

Colliers International has been exclusively appointed to sell the property by deadline private treaty closing at 4pm on Tuesday 29 September, unless sold prior.

It is being marketed by Directors Matt Prentice and Shoneet Chand of Colliers North Shore with Director Paul Jarvie of Colliers’ Highbrook Industrial office.

Prentice says it is an opportunity with immense appeal in the current market.

“Investors have noticeably increased their emphasis on tenant covenant, with many preferring the security of established companies in essential service sectors.

“The defensible characteristics of industrial assets are also highly sought, with logistics and distribution facilities being particularly attractive.

“The high-yielding investment at 7 Armstrong Road offers all of these compelling attributes and more, including a highly accessible location, substantial improvements and an A-grade seismic rating.

“Adding to this appeal is locked-in rental growth from a triple net lease to New Zealand’s largest specialist foodservice distributor.

“Bidfood employs more than 2,200 people across 30 locations nationwide, offering an extensive range of wholesale food products, including fresh fruit and vegetables, to over 15,000 customers.

“The company is a wholly owned subsidiary of Bidcorp, which is listed on South Africa’s JSE exchange and operates in markets across five continents.

“This multinational covenant, along with Bidfood’s sought-after status as an essential service, makes for an unbeatable combination.

“Investment fundamentals of this calibre have never been more appealing than now, making this an opportunity not to be overlooked.”

Chand says the property is well positioned on a freehold site with dual street access, providing full drive-through capability for trucks.

“The property is located at the end of Armstrong Road, a cul-de-sac that runs off busy William Pickering Drive.

“A driveway provides access onto Bush Road, which is one of the key arterials through the established North Harbour industrial estate.

“The site is highly accessible, being located 2km from the Constellation Drive motorway interchange and 1.6km from the Albany Highway, providing access to SH18.

“Auckland’s CBD is within a 25-minute drive, Takapuna is a 15-minute drive and Albany’s commercial centre is a five-minute drive.”

Jarvie says the property was constructed in the mid-1990s with a further addition in 2006.

“The original building, located to the west of the site fronting Armstrong Road, comprises an office, coolstore, chiller and canopy.

“The addition to the east comprises an environmental loading area (ELA), a high stud dry store warehouse and a canopy extension.

“The canopy extends the length of the northern side of the structure, providing access to the fully sealed and secured yard.”

The original building features a 218sq m office over two levels, a 90sq m cleaning product storage area, and high stud coolstore and chiller with a stud height of 9.4m to 10.7m.

The 249sq m chiller is temperature controlled to 50C and features a foreman’s office with clear views over both the chiller and canopy. An automated door provides access to the canopy’s loading area, with a further two automated doors leading to the coolstore.

The 656sq coolstore is temperature controlled to -250C. It is serviced by a 59sq m plant room, accessible from both the coolstore and a separate vehicle entrance from Armstrong Place.

The ELA is accessed externally via five loading bays and internally from the chiller, coolstore and dry store. It has a stud height of 5.1m rising to 6.2m, and features a dock leveller in the fourth bay and a partitioned forklift charging area in the end bay.

The dry store provides a modern high stud warehouse with a stud height of 9.7m to 9.8m.

Tenant Bidfood began in New Zealand through the acquisition of Crean Foodservice in 2000. Since then, the business has grown rapidly and made further regional acquisitions to become the only company in New Zealand that can offer true national distribution service to multi-site customers.

Bidfood’s decentralised structure allows each distribution centre to determine its own product range and pricing, ensuring individual customer and regional demands are met and also supporting local suppliers.

Related Experts

Matt Prentice

Director

Auckland North

Matt joined Colliers International in 2006 with a focus on mid to upper end industrial & investment transactions.  Specialising in tenanted investments, occupier representation through to vacant land / building sales on the North Shore, Matt was promoted to a North Shore Director in 2015.

In 2011 and 2012 Matt was awarded the "Golden Gavel" for Colliers New Zealand as the most successful auction sales broker across Colliers New Zealand. Matt has been the number one North Shore sales and leasing broker, 2011, 2012 and 2013.  In 2012, was a top 20 performer across Colliers New Zealand and has over $550 million of sales since joining colliers International.

In 2013, Matt was in the top 10 Highest Performing Brokers Nationwide and in 2014, he had a record year completing more than 50 transactions, and  finished in the top 10% of brokers in New Zealand.

In 2015, Matt completed over 60 transactions, more than any broker North of the Bridge, again finishing in the Top 20 brokers in New Zealand.

In 2016, Matt had a record year finishing top 10 in the country and was the top broker on the North Shore. 

View expert

Shoneet Chand

Director

Auckland North

Shoneet is a Director at Colliers International and specialises in Investment & Development Sales over $2m across the wider Auckland region. Over the past 10 years he has been one of the most successful investment sales brokers in Auckland with a track record of significant sales second to none. He has had considerable experience in dealing with international purchasers and has completed a number of deals with investors out of the Middle East, Asia and Europe.

Shoneet was the top broker in his market for both 2014 and 2015 & once again placed in the top 10 brokers nationwide for Colliers in 2016.

In 2017, he transacted over $250 million of property, did 73 deals and was ranked 2nd in New Zealand.

In 2018, he was a finalist in the Commercial & Industrial Salesperson of the Year category which is judged nationwide across all agencies and again was the top broker in his market, being involved in over $300m of unconditional sales.

In 2019 he was again ranked in the top 5 brokers nationwide for Colliers and was involved in over $300 million of settled sales in the calendar year. 

Notable Transactions Include;

  • 2-4 Fred Thomas Drive, Takapuna - $60,850,000
  • 33 Corinthian Drive, Albany - $50,500,000
  • 279-301 Lincoln Rd, Henderson – $38,000,000
  • Todd Industrial Park, Wellington - $33,000,000
  • 229 Dairy Flat Highway, Albany - $33,000,000
  • ANZ Centre, Albany - $27,340,000
  • The Warehouse, Albany - $26,400,000
  • 11 Coliseum Drive, Albany - $26,700,000
  • Farro Fresh/ASB, Constellation Drive - $25,500,000
  • 5 The Warehouse Way, Northcote - $19,000,000
  • Noel Leeming, Wairau Park - $19,000,000
  • 16 Dinning Road, Riverhead - $16,500,000
  • 151 Lincoln Road, Henderson - $15,250,000
  • Westpac Albany - $15,150,000
  • 7-21 Kawana Street, Northcote - $14,998,000
  • PlaceMakers, Albany - $14,000,000
  • 550 Te Irirangi Drive, East Tamaki - $14,200,000
  • 44 Arrenway Drive, Mairangi Bay - $13,117,116
View expert

Paul Jarvie

Director | Industrial

Auckland South

I am married with three young children. I have a diverse professional background including 7 years as a primary school teacher and 9 years in the pharmaceutical industry with both sales and sales management experience.

I am a keen sportsman with ocean swimming and cycling being my current activities.

View expert