Foodstuffs' Auckland site sells for $93 million in landmark deal
The $93 million sale of Foodstuffs’ huge Auckland distribution centre in Mt Roskill is the largest singular asset industrial transaction on record in New Zealand.
Foodstuffs North Island Limited appointed Colliers International to bring 58-60 Roma Road to market for the first time in five decades.
Goodman announced this week that it had purchased the 13.12ha property for $93,000,000.
The transaction was brokered by Colliers’ Industrial National Director Greg Goldfinch, Site Sales Director Josh Coburn, International Sales Director Richard Kirke and Industrial Director Todd Kuzmich.
An analysis by Colliers’ Research team has found the transaction is the single largest industrial sale in New Zealand on record.
The previous record-holder was the $90 million sale of The Warehouse distribution centre at 13 Bolderwood Place, Wiri, to ACC in 2012, also brokered by Colliers International.
Goldfinch says Roma Road is an incomparable site in today’s market.
“It has scale, income, good quality improvements and huge motorway exposure,” he says.
“The very strong result reflects the quality of the property and the lack of large footprint future development sites close to the CBD.
“This was truly a unique opportunity, which the market also believed.”
Goldfinch says there was a broad range of interest from the market both domestically and internationally.
“The market response and end result reflects the continuing demand for quality Auckland real estate opportunities across all sectors,” Goldfinch says.
“This looks set to continue for the foreseeable future.”
Goodman has acquired the property on a leaseback arrangement until Foodstuffs moves to a new purpose-built facility at Auckland Airport.
The listed property trust intends to refurbish and reconfigure the property on expiry of the Foodstuffs lease in 2021.
Goodman Chief Executive Officer John Dakin says the acquisition extends the trust’s investment in the buoyant Auckland industrial market and complements its predominantly South Auckland-focused portfolio.
“The size of the property and the strategic location, makes it one of the city’s best industrial opportunities,” Dakin says.
“With warehouse and logistics space already supply constrained, the growth of the city and the expansion of e-commerce is expected to drive future demand in this location.
“The population within a 20-minute delivery truck radius is estimated to be almost 700,000 people. With purchasing power of $21.3 billion the surrounding consumer catchment makes it the ideal location for fulfilment and logistics companies.”
The property is close to the Waterview Tunnel at the northern end of State Highway 20, offering direct access to the motorway systems north, south and west.
It is only 15 minutes’ drive from the CBD, Ports of Auckland, and Auckland International Airport.
With site coverage of less than 30 per cent, the property also offers longer-term opportunity through intensification of use or redevelopment.
Foodstuffs developed the rural site in the early 1960s, at a time when Mount Roskill was transitioning from its agricultural roots into the mature residential and industrial suburb it is today.
The property’s improvements comprise four interconnected buildings that were constructed at various stages since the 1960s.
There are large car parking areas and a substantial concrete sealed yard, facilitating truck access.
The 5,168sq m property at 58 Roma Road comprises a large, two-level office building with a net lettable area of 1,153sq m.
The 2,413sq m property at 59 Roma Road is currently used for car parking.
The largest property, at 60 Roma Road, comprises two titles of 123,553sq m and 154sq m each. Three buildings, constructed in stages, offer a net lettable area of 35,156sq m.
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