Mt Wellington warehouse and office for sale with two international tenants
A split-risk warehouse and office investment in one of Auckland’s most centrally located industrial precincts is for sale with two leases backed by listed international companies.
The 5,815sq m industrial facility at 88 Carbine Road, Mount Wellington, occupies a substantial 10,380sq m freehold site with 150m of road front exposure.
It is tenanted by refrigeration and air conditioning company Patton Limited, part of Swedish-listed company Beijer Ref, and plastics supplier Stowers, part of the Australian-listed Pact Group.
The property returns $726,998 plus GST in net annual rental income, which is below the market rate, providing scope to add value at the next rental review or upon re-leasing.
Colliers International Industrial specialists Brad Johnston, Greg Goldfinch and Hamish West are marketing the property for sale by deadline private treaty.
Offers close at 4pm on Wednesday 14 November, unless it is sold earlier.
Johnston says it is a chance to acquire a superbly located, split-risk industrial investment with outstanding tenants and potential for future uplift.
“You’d be hard-pressed to find a property with better investment fundamentals for sale in Mt Wellington right now,” he says.
“The property occupies a desirable location in a well-established industrial precinct with great site access, huge site exposure and excellent motorway connectivity.
“The warehouse areas boast quality modern construction, with full-height concrete walls and high studs.
“With the shortest lease expiring in 2021, this is a chance to add value through re-positioning the investment to attract higher rental returns from a new tenant.”
Goldfinch says the property comprises a substantial industrial facility that has been split into two tenancies.
“The property has yards at the front of both warehouses, while the northern warehouse has its own secure yard.
“The office accommodation is split over two levels at the front of the site.”
The first tenancy, occupied by Patton, comprises 707sq m of office space, a 2,780sq m warehouse, a 16sq m warehouse office, and a 320sq m canopy.
“The ground floor office area comprises a showroom, amenities and a mixture of open plan and partitioned office space,” Goldfinch says.
“An internal staircase leads to the first floor which comprises a reception area, further amenities and partitioned offices.”
The warehouse is of clear span construction with a stud height ranging from 9.7m to 11.1m. Access is via two roller doors, one to the north and the second to the western front wall.
Patton Limited is signed to a seven-year lease returning $490,505 plus GST in net annual rent. Two-yearly rental increases are linked to the Consumer Price Index.
The lease expires in March 2021, with no rights of renewal.
Established in 1923, Patton is a leading manufacturer and wholesaler of refrigeration, air conditioning and mechanical services products.
It is headquartered in Auckland with worldwide representation and manufacturing facilities located in New Zealand, India and Thailand.
The second tenancy, occupied by Stowers Containment Solutions, comprises 347sq m of office space, a 1,437sq m warehouse, a 103sq m warehouse office, and a 105sq m canopy.
The ground floor office area is of a similar layout to the first tenancy, with a showroom and partitioned offices.
An internal staircase leads to further office space and a kitchenette.
The warehouse is of clear span construction with access provided via two roller doors located on the western front wall. The stud height ranges from 11.4m to 12.3m.
Stowers’ lease is held by Pact Group Holdings (NZ) Limited, a subsidiary of The Pact Group, which acquired the company in 2016.
It is signed to a 10-year lease returning in $236,493 plus GST in net annual rent. Rental reviews are fixed every two years at 2 per cent, compounded annually, with market reviews on renewal.
The lease expires in September 2022, with two rights of renewal of six years each, extending the final expiry date to August 2034.
Established in 1972, Stowers is New Zealand’s leading importer, distributor and supplier of plastics, specialising in innovative containment solutions for industrial and commercial organisations.
West says the property is located on the eastern side of Carbine Road in the heart of the Mt Wellington industrial area.
“The property has very good linkages to the Southern Motorway via the Mt Wellington interchange within 2km.
“Auckland’s CBD is about 13km to the north and Auckland International Airport is some 14km to the southwest.”
West says Mt Wellington is an established industrial location bounded by other predominantly industrial suburbs of Penrose and Onehunga.
“The area has grown in popularity, with improved infrastructure including the Southeastern Highway arterial development, the development of the Pacific Rise Business Park and the redevelopment of the Vestey Drive industrial area.
“Surrounding developments comprise a mix of industrial premises of various ages and sizes.
“Several modern design-build industrial buildings have been completed on previously vacant sites together with trade retail developments.
“The area has also significantly benefited from the recently completed Sylvia Park Shopping Centre, located off Mt Wellington Highway and Carbine Road.”
The site is zoned Light Industry, which allows for industrial activities that do not generate objectionable odour, dust or noise.
This includes manufacturing, production, logistics, storage, transport and distribution activities.
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