An exceptional sales result in Taupō, a landmark Napier industrial deal, and a record month of leasing across the Hawke’s Bay demonstrate the ongoing strength of the central North Island’s commercial property market.
Colliers International recently brokered the sale of a nationally tenanted industrial property 464 Rakaunui Road, Rotokawa, Taupō, for a competitive yield of 5.04 per cent.
The $2.7 million sale followed 12 offers from a large geographic spread of buyers.
Colliers also recently brokered the sale of a 3.21ha industrial site on Waitangi Road in Awatoto, Napier.
The property was purchased by an investment partnership company that is developing a new $70 million factory for premium New Zealand pet food maker Ziwi.
Hugh Milloy, Taupō Broker at Colliers, says the Rakaunui Road result demonstrates the high level of investor appetite for quality provincial industrial property.
“There was very strong enquiry throughout the campaign, which resulted in an excellent outcome for the vendor and purchaser alike.
“The property sold unconditionally on 10 July, only one day after the five-week sales campaign concluded. It’s clear that investors were drawn to the quality building, quality tenant and quality lease.
“We’re thrilled to have a very happy buyer and a great result for the vendor – making this a big win-win all round.”
Completed in 2016, the property comprises a 1,864sq m industrial building on a 4,080sq m freehold site.
It is prominently located at the corner of Rakaunui and Aratiatia Roads in Taupō’s Centennial Industrial Estate, only a few minutes from State Highway 1.
The property is fully leased to national tenant HJ Asmuss Ltd, a heavy engineering supplies company that was established in 1920 and has branches throughout New Zealand.
Danny Blair, Hawke’s Bay Director at Colliers, says the Ziwi sale in Napier shows demand for well-located, quality industrial property has been undented by the impact of Covid-19.
“It’s particularly pleasing that the sale will translate directly to new jobs for the Hawke’s Bay. Ziwi’s state-of-the-art new pet food production facility will employ 125 workers upon completion.
“The 12,000sq m facility will replace Ziwi’s existing factory in Tauranga. The company spent three years looking at potential locations in Tauranga but was unable to find a site of sufficient size, with the necessary infrastructure, within its required timeframe.
“The decision to relocate to the Hawke’s Bay shows tremendous optimism for the region’s ongoing growth.”
The commercial leasing market in Hawke’s Bay has also been performing exceptionally well.
Blair says June 2020 was Colliers’ biggest month for leases and enquiry in the region since March 2017. Almost half were retail leases, followed by industrial and office.“We see all this activity as a positive for the region’s recovery and growth, with people getting back to business.”