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.
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.