Freehold property in popular industrial precinct of Highbrook
A food grade industrial facility in desirable East Tamaki is for sale with a well-established tenant and the opportunity for an owner-occupier to take vacant possession of the rear.
Located near the popular Auckland industrial precinct of Highbrook, the freehold property at 1/30 Kerwyn Avenue provides 1,552.7sq m of warehouse and office space across two tenancies.
The front tenancy is occupied by frozen meal manufacturer Foodwise, which has just under four months remaining on its current lease, plus a three-year right of renewal to September 2022.
The rear is occupied by snack food company Chasers, which has no rights of renewal once its lease expires on 1 August this year, although the tenant has indicated they would like to stay on for a further two years.
The property currently returns $165,621 net plus GST in split-risk annual income.
Colliers International has been exclusively appointed to offer the property for sale by deadline for offers closing at 4pm on Wednesday 22 May, unless it sells earlier.
Jolyon Thomson, who is marketing the property with colleague Paul Higgins, says it is a superb opportunity for owner-occupiers and investors alike.
“This is a chance to acquire a sought-after food grade facility in a one of Auckland’s most coveted and well-located industrial precincts,” Thomson says.
“Owner-occupiers will be able to enjoy holding income from the rear tenancy prior to making the move in August.
“The property also offers ongoing rental income from the front tenancy, as well as the flexibility for occupiers to expand once the front lease expires.
“As an investment, a new buyer will appreciate the split-risk income that the property’s two separate tenancies provide.
“There is also the opportunity for rental upside upon renewal of the front tenancy and securing a new rear tenant.”
The Light Industry zoned property comprises a row of warehouse and office buildings sitting on approximately 2,800sq m of exclusive land.
The property is on a single title that makes up the western half of a seven-unit development. The neighbouring six units to the east are on individual titles.
Higgins says the property’s flexible layout allows it to be split into smaller units in the future, like the remainder of the development.
“The buildings benefit from a total of seven roller doors while the yard is large enough to provide access, parking and storage for multiple tenancies, allowing the property to be easily subdivided in future.
“This could be a great option for an occupier who wishes to own their own premises but doesn’t require an additional rental investment.”
The front tenancy comprises 958.7sq m of office and warehouse space, predominately fitted out for food manufacturing and storage.
A two-storey office of 71sq m, with road frontage to Kerwyn Ave, backs onto a medium stud, food grade warehouse with associated cool stores, freezer and plant room.
A detached warehouse behind this also has its own additional cool store and freezer.
The food grade fit out has been maintained to a high standard by the existing tenant to conform to food safety and retail supply standards.
Tenant Super Snack Limited, trading as Foodwise, is a niche food design and manufacturing company specialising in ready to eat meals and meal components. It purchased the Super Snack brand in 2010.
Foodwise manufactures fresh, chilled and frozen products, which are stocked on supermarket shelves throughout New Zealand.
Its lease returns $107,621 plus GST in net annual rent, with the next market rental review due on renewal on 1 September.
The rear tenancy comprises 594sq m of warehouse and office space. An 83sq m internal office area is split over two levels, while 370sq m of the warehouse has been lined as a food preparation facility.
Tenant Chasers Food Company Limited pays $58,000 plus GST in net annual rent.
This provides holding income until lease expiry on August 1, after which owner-occupiers can take vacant possession.
Thomson says the property’s Light Industry zoning allows for a range of manufacturing, production, logistics, storage, transport and distribution activities.
“The offering is well located on one of East Tamaki’s main arterial roads, giving it excellent traffic exposure.
“Kerwyn Ave provides direct access to Highbrook Drive, only minutes from the Southern Motorway State Highway 1 interchange.
“The location also provides easy access to nearby industrial hubs areas such as Wiri, Auckland Airport and Mount Wellington.
“Properties such as this – so close to Highbrook, with value-add potential, and additional land with flexible options – rarely come to the market.”
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