The Pernod Ricard facility in Point England is on the market through Colliers International, presenting a unique opportunity to acquire a landmark 7.35ha industrial site with development potential in a central Auckland location.
The high-profile property at 171 Pilkington Road was acquired in the 1970s and has been an office, wine bottling, storage and distribution facility since the 1980s.
It is now surplus to Pernod Ricard’s property requirements and will be sold with vacant possession, offering a range of options for owner-occupiers, add-value investors, developers and offshore parties.
The property is for sale by way of an international expressions of interest campaign. Offers are to be presented by 4pm on Tuesday 14 July, unless it is sold prior.
Andrew Hooper, Industrial Director at Colliers International, is marketing the property with colleagues Gareth Fraser and Greg Goldfinch.
He describes it as the most significant industrial development site to be offered to the market this year.
“This is a once-in-a-generation opportunity to secure a cornerstone landholding in one of Auckland’s most central suburbs.
“As the largest industrial development site in the area, it offers multiple options to add value, at a scale that allows for staged leasing and redevelopment.
“It includes 29,000sq m of functional improvements that lend themselves to a wide range of storage and distribution functions. Additional add-value land is part of the package once demolition work has been completed.
“Given the extensive improvements and additional land, the property is expected to attract interest from a wide range of buyers including owner-occupiers, industrial investors and developers.”
Hooper says the property’s Light Industry zoning allows for uses including manufacturing, production, logistics, storage, transport and distribution.
“In the current market, with strong demand from industrial occupiers, the composition of the site is well suited to a staged development. This may entail leasing the existing warehouses whilst developing new warehousing where tanks are currently located.
“Potential uses include e-commerce, warehousing, distribution and storage. The location offers excellent transport linkages to nearby affluent residential suburbs, making ‘last kilometre’ deliveries easy.”
Hooper says the site is also highly suited to a large-scale, master-planned redevelopment.
“Alternative mixed-use options, subject to rezoning, include retail, residential, retirement, education or a master-planned development including a combination of uses.
“In the interim there is an opportunity to lease parts of the site pending a staged or comprehensive redevelopment.
“Given the growing and gentrifying surrounding catchment, the ultimate development outcome may consist of short-term industrial holding income and a medium- to long-term comprehensive mixed-use development.”
Gareth Fraser, Auckland Director of Investment Sales at Colliers, says location is key to the property’s appeal.
“The site is superbly positioned within one of Auckland’s most significant growth nodes, only 13km from the CBD.
“It is within a catchment area that has undergone significant development in recent years, including the master-planned Stonefields residential community and the expanding Lunn Avenue retail precinct.
“The ongoing Tāmaki Regeneration Programme will bring more than 10,500 new homes to the wider area over next 25 years.
“The future redevelopment of the former University of Auckland Tāmaki campus is also of significance. It was acquired in 2016 by a developer who is currently seeking a plan change to accommodate an intensive residential development.”
Greg Goldfinch, Industrial National Director at Colliers, says the defensive characteristics and positive aspects of industrial property remain appealing to investors in the current climate.
“Industrial’s strong fundamentals are likely to provide a buffer against market changes as New Zealand recovers from the economic disruption of the Covid-19 lockdown.
“Vacancy remains low, future supply is limited, and developable land is scarce. All of these factors mean we are likely to see strong rental rates and sale prices into the future.”
Goldfinch says industrial property remains in strong demand from the supply chain, logistics and warehousing sectors, which were already in growth before Covid-19.
“These sectors have received a significant boost in recent months as people shift to online and ‘click and collect’ services more than ever before.”
The property at 171 Pilkington Road is within a semi-commercial area comprising a mix of residential, commercial and industrial activity.
Surrounding properties are predominantly second-tier, medium-sized industrial buildings developed during the 1970s.
Winemakers Montana commenced development of the site in the 1970s. A head office was established on the site in 1980 and wine bottling ramped up throughout the decade.
The site has been held by different entities with Pernod Ricard acquiring the business in 2005.
Its use has intensified since then with bottling, storage, packaging and distribution activity. A third vehicle entrance was added via a right of way over the reserve area to Apirana Ave.
The property comprises four titles totalling 73,500sqm with a net lettable area of 38,656sq m split across multiple buildings.
The northern end of the property is used for access and carparking, with two silo buildings positioned to the west.
To the south is the production area, main reception and staff amenities. Further south is a warehouse and distribution centre with large integrated canopy.
In 2016 the former head office building was converted to a childcare facility and leased to an independent early childhood care provider.
Late last year, Pernod Ricard made the decision to close production on-site and sell the property.“This decision presents a huge and unexpected opportunity to acquire this site ripe for redevelopment,” says Fraser.