‘A good investment brewing’
An East Tamaki industrial property on a long lease to one of New Zealand’s most beloved brands is being marketed for sale as “every investor’s cup of tea”.
Founded in 1898, the Bell Tea and Coffee Company has endured two World Wars and the Great Depression to bring Kiwis a well-earned brew for 120 years.
Bell’s market-leading position provides exceptional tenant covenant for the Auckland warehouse facility it leases at 305 East Tamaki Road.
The property is for sale by auction at Colliers International’s Highbrook office at 11am on Wednesday 14 November, unless it sells earlier.
Colliers Industrial Director Paul Jarvie, who is marketing the property with colleagues Andrew Hooper and Hamish West, says savvy investors will see a good investment brewing.
“Superbly located in the popular East Tamaki industrial area, the property is a local landmark thanks to the tenant’s iconic bell-shaped logo, which graces a highly visible tower.
“The property comprises a 3,992sq m warehouse and office facility on a prominent 6,052sq m freehold site with an extensive 67m of road frontage.
“Bell is signed to a 12-year lease with seven years remaining and multiple rights of renewal. The lease returns $421,402 plus GST in net annual rent, with yearly CPI rent reviews.
“With its outstanding tenant covenant, built-in rental growth and excellent location just minutes to Highbrook, this property is sure to be every investor’s cup of tea.”
Hooper says the property was built in the 1960s and subsequently upgraded and expanded in the 1970s and in 2007.
“It provides a mix of medium to high stud warehousing, mezzanine storage and office and amenity space.
“With only 387sq m devoted to office and amenities, the facility offers a highly desirable ratio of warehousing.
“The remainder of the site is mostly sealed with asphalt, providing for on-site car parking and full drive-around access from two road access points.”
Hooper says the location has excellent proximity to the Southern Motorway via both the East Tamaki and Manukau interchanges.
“Easy access to nearby industrial areas such as Wiri, Auckland Airport and Mt Wellington make this location extremely desirable.”
Bell Tea and Coffee Company Limited commenced its current lease on 1 October 2013. Three rights of renewal of four years each extend the final expiry date to 30 September 2037.
West says Bell is a New Zealand institution with enduring cultural relevance.
“Steeped in history, Bell is recognised as New Zealand’s oldest and most well-known tea brand.
“The company was founded by Norman Harper Bell, who was both a talented tea blender and an astute businessman.
“In World War I, Bell’s one-pound tea tins became popular for sending comfort parcels to troops on the front, as they were ideally proportioned to receive special postal concessions.
“Bell launched its first television ad in 1966, a surprising three years before the first tea bags were introduced to the New Zealand market.
“Later television ads in the 1980s featured equestrian Mark Todd and the well-known phrase ‘everybody’s cup of tea’.”
Bell and its associated brands now offer a wide range of teas, herbal infusions, coffee and coffee equipment.
The company has acquired numerous tea and coffee businesses throughout its history, including Jed’s, Hummingbird and Gravity.
It is also the licensed New Zealand distributor of Twinings teas.
The Bell Tea and Coffee Company briefly rebranded as BrewGroup before it was purchased by Netherlands-based beverage giant Jacobs Douwe Egberts, which paid more than $100 million for the company last year.
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