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Modern industrial property with strong tenant covenant in Napier

NZ_AucklandCBD_Communications_Modern industrial property with strong tenant covenant in Napier

A purpose-built distribution complex for an internationally renowned tenant in Napier’s tightly held industrial precinct presents buyers with the opportunity to purchase a highly desirable asset with a steady rental stream.

7 Waitane Place, Napier is a 1,378sq m building located on 2,955sq m of land that is zoned Main Industrial Zone by the Napier City Council.

Coca-Cola Europacific Partners is the tenant and they recently committed to a new long-term lease that includes market and CPI rent reviews. The lease provides $156,495 plus GST in net annual rental income.

The property is located in the Onekawa industrial precinct, which is Napier city’s primary industrial area. Waitane Place runs off Ford Road, a main internal connector road crossing Austin Street. Austin Street in turn connects Taradale Road and Prebensen Drive, which are both main arterial routes in Hawke’s Bay.

Colliers Brokers Danny Blair and Calum Ironside have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 16 December, unless sold prior.

The modern building is a highly functional mixture of warehouse and office space plus additional canopy and yard with abundant car parking that offers convenience for contractors and suppliers.

The property, which is approximately 85 per cent warehouse and 15 per cent office, provides high stud (6.4m clearance) to the portal knee coupled with excellent design allowing for permitted in and out truck access within a secure area.

Coca-Cola Europacific Partners began their new six-year lease on 8 November and there are two further rights of renewal in place for three years each leading to a final expiry of 7 November 2033.

Market rent reviews are scheduled for 8 November in 2027 and 2030 with a CPI review scheduled for 8 November 2024 capped at a maximum of a 3 per cent increase.

Blair, Director at Colliers Hawke’s Bay, says this is a premier investment opportunity that will provide long-term passive income.

“This is an excellent, well-designed modern storage and distribution facility that is incredibly user-friendly, while providing for the tenant’s needs,” Blair says.

“The property will be extremely attractive for investors who will recognise the strong tenant covenant on offer that includes a long-term lease with favourable terms given the scheduled rental reviews.”

Ironside, Industrial and Commercial Sales Broker at Colliers Hawke’s Bay who was named the Commercial & Industrial Rising Star of the Year at the 2021 REINZ Awards for Excellence in September, says Napier’s industrial property market has becoming increasingly attractive to a wide range of buyers.

“We have seen a vast amount of investment capital enter the Hawke’s Bay market from around New Zealand in the past few years as demand for properties of this nature have enjoyed considerable

growth. That being said, this will also hold strong appeal for local buyers who are familiar with how popular this area is,” Ironside says.

“Vacancy rates are at historic lows on sizeable industrial sites like this one throughout Napier and given the functionality of the premises coupled with a blue-chip tenant, this property presents as an exceptional purchasing opportunity.

“We expect there will be significant interest in this offering and encourage all prospective buyers to do their due diligence and contact us immediately.”


Related Experts

Danny Blair

Broker

Hawke's Bay (Commercial)

Having worked in commercial real estate since 2006, Danny is a Director and shareholder of Colliers Hawke's Bay And Taupo.

Danny has been involved in multiple transactions throughout the past decade, specialising in sales and leasing solutions for corporate tenants, government agencies, investors and developers alike.

Danny has progressively established his position in the Hawke’s Bay commercial property market as ‘the top broker’ across the region. He has been the lead broker on some of the largest transactions in the Hawke’s Bay property market over the last five years, including The Tomoana Food Hub, which sold in excess of $40M+ at a yield of 6.23%. This is the largest industrial sale in Hawke’s Bays history, Further sales include 37 Johnston Way, Hastings which recently sold at a record yield of 4.95%. Danny has sold in excess of $270M worth of commercial real estate within the Hawke’s Bay region alone.  In 2016, 2017, 2018 and 2020 Danny was awarded Colliers top broker in Hawke’s Bay.

 

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Calum Ironside

Broker

Hawke's Bay (Commercial)

Calum specializes in Industrial sales and leasing with the wider Hawke’s Bay & Taupo markets. Since joining Colliers in 2019, Calum has quickly become a leading Industrial & Commercial broker within the Hawke’s Bay team. During 2019-2021 his time has been spent gaining a strong hold of Napier Industrial areas - Onekawa, Pandora and Awatoto. Since joining Colliers, he can confidently state he’s brokered over 65% of all sales within Napier Industrial and been involved in the vast majority of the leasing activity. Calum is now well known within the Hawke’s Bay commercial market, having built a strong reputation built off a growing list on excellent results.

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.

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