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Napier and Taupō industrial sales highlight huge investor demand

Napier and Taup industrial sales highlight huge investor demand

Two prime industrial properties in Napier and Taupō have been snapped up for almost $10 million, highlighting the enormous demand for commercial property in the central North Island.

The properties at 96 Austin Street, Napier, and 2 Titan Way, Taupō, were purchased by an out of town investor who has been expanding the regional reach of their investments.

Both sales were transacted in recent weeks by Colliers International’s brokerage teams in Hawke’s Bay and Taupō.

Hawke’s Bay Broker Calum Ironside, who was involved in both deals, says there continues to be plenty of investor demand from outside the region.

“We received strong enquiry on both properties from Auckland and other centres, as investors look to the regions for competitive yields and long-term returns.

“Both properties had strong appeal but presented very different propositions. The Taupō property is a prime passive investment with good cashflow, while the Napier property is an excellent long-term hold or redevelopment opportunity.”

The Taupō property sold for $3.75m at a yield of 6.53 per cent. The deal was brokered by Ironside with Hugh Milloy and Jack Hughes of Colliers International Taupō.

Milloy says the 10,237sq m freehold property is well located in the popular industrial precinct of Rotokawa.

“Situated only three minutes from State Highway 1, the property comprises a 1,895sq m industrial facility with a high stud warehouse, drive around access and a security fenced yard.

“The purchaser was particularly attracted to the strength of the tenant covenant. The property is on a new six-year lease to Activated Carbon NZ, which is New Zealand’s leading producer of activated carbon from sawdust organic waste.

“The lease provides locked-in rental growth and market reviews on renewal, providing upside through to final lease expiry in 2044.”

The Napier property sold for $6.2m at a yield of 3.68 per cent. The deal was brokered by Ironside with Rob Nankervis of Colliers International Hawke’s Bay.

Nankervis says the 2.96ha freehold site is situated in the heart of Napier’s tightly held Onekawa industrial precinct.

“Located only 4km from Napier’s CBD, this substantial property provides excellent connectivity to the Port of Napier and the Hawke’s Bay Expressway.

“It offers significant development opportunities by either leveraging off the vendor’s draft subdivision plans or starting from a blank canvas to suit requirements.

“The purchaser will also be able to draw on short-term passing income from a yard-based tenant, providing cashflow while making plans to unlock the site’s future potential.”

Nankervis says the Hawke’s Bay property market continues to go from strength to strength.

“Sales and leasing activity have been strong since the Covid-19 lockdown was lifted earlier this year, with particularly buoyant demand for industrial property.

“We expect this trend to continue into the new year, as investors from a wide geographic spread continue to seek prime regional commercial property assets.”


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Calum Ironside

Broker

Hawke's Bay (Commercial)

Calum grew up in Hawke’s Bay and completed his schooling here, before becoming Tertiary qualified in Economics and Accounting at Otago University, and then completing a Graduate Diploma in Oenology and Viticulture at Lincoln University. Over the 7 years prior to joining Colliers, his time was spent building a career within the Wine Industry, working for the likes of Sileni Estate, Villa Maria, NZ Wine Cellars, Asahi and Treasury Wines. After eventually ending up in Singapore with Asahi Beverages, Calum decided to return home to Hawke’s Bay, and take on a new challenge within Commercial Property.

 

Since joining Colliers, Calum has quickly become a leading Industrial & Commercial broker within the Hawke’s Bay team. Having a standout year in 2019-2020, he brokered 20 transactions (including 11 sales) and was named Colliers Rookie of the Year. He has made the Napier Industrial areas of Onekawa and Pandora his own, being involved in close to 60 percent of all sales and the vast majority of leasing activity. Calum can now proudly state he has brokered over $30million in transactions, an unparalleled feat for the first full year of brokerage. He has quickly become one of Hawkes Bays top industrial specialists, with clients appreciating his ability to network effectively, as well as be cooperative and friendly. A confident and personable broker, Calum brings an enthusiastic and analytical approach, and now an impressive track record of recent sales and leases.

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Rob Nankervis

Broker

Hawke's Bay (Commercial)

Rob has a solid foundation of real estate experience, having spent the past twenty years in the industry.

With a Business Diploma endorsed in property management and valuation from Massey University, Rob applies his extensive rural, residential and industrial real estate experience to his role as a broker at Colliers Central Region.

Rob joined Colliers in 2011, specialising in industrial and commercial sales and leasing. His background has prepared him well for industrial real estate, having had business and senior management experience in addition to his previous roles in real estate. Over the years he has gone about his business, building up extensive networks across the Bay and establishing key relationships in the industry.  

Rob has a huge knowledge base around the industrial, agriculture and horticultural markets and as a result of this, has a clear understanding of his vendor’s needs and wants.

A successful broker in every right, Rob adds a great dynamic to the Colliers Hawke’s Bay Team.

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Hugh Milloy

Broker

Taupo

Hugh moved to Taupō in 2011 to semi-retire having enjoyed the beauty and diversity of the central North Island region during family holidays in Taupō over many years.  Quickly realising he wasn’t ready for a quieter life Hugh completed his REAA real estate papers and then joined Harcourts Taupō.   Qualified with a Bachelor of Commerce degree from Victoria University, Hugh soon became interested in commercial real estate and joined Colliers to specialise in the commercial and industrial market.

As a property owner in Taupō for over 20 years, Hugh enjoys all that the Great Lake region has to offer. He was the volunteer secretary of Coastguard Lake Taupō for 7 years and also for the Waipahihi Botanical Society, guardians of Taupō’s magnificent botanical reserve, for the past 2 years.

A handy golfer a few years back, Hugh now struggles to master the finer points of the game. He chose to work with Colliers because of the company’s expertise in the global commercial and industrial real estate markets.

Driven to achieve the best possible results for his vendors he will provide a completely professional, effective and stress-free real estate experience.

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Jack Hughes

Broker

Hawke's Bay (Commercial)

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