Huge Visy industrial facility in growing Hamilton up for sale
Visy’s massive new manufacturing and distribution facility, superbly located in Hamilton’s growing airport industrial hub, is for sale for the first time since it was completed less than two years ago.
“This is quite possibly the New Zealand industrial investment opportunity of the year,” says Greg Goldfinch, Industrial National Director at Colliers International, who is marketing the property with colleagues Andrew Hooper and Alan Pracy, alongside Chris O’Brien of CBRE Australia.
“Located on a substantial 8.51ha freehold site at 122 Ingram Road, Hamilton, the property comprises a newly completed, state-of-the-art industrial facility spanning more than 36,000sq m.
“It is superbly positioned less than 10km from Hamilton’s CBD, in the heart of the North Island’s Golden Triangle, providing exceptional access to markets.
“The property is tenanted by the wholly owned New Zealand subsidiary of global packaging and paper giant Visy Industries.
“A new 20-year lease from settlement provides $3.5 million plus GST in net annual rent. Locked-in rental growth of 2.5 per cent a year is bolstered by market rent reviews in 2031 and on renewal.
“The highly attractive triple net lease structure means the tenant pays all outgoings, including structural costs, making it an ideal passive investment.
“This property truly ticks every box – from its brand new build, huge site and highly accessible location, to its strong international tenant covenant and generous long-term lease.
“When it comes to vanilla institutional-grade industrial investments, it rarely gets better than this.”
The property is being taken to the global market by way of an international expressions of interest campaign closing at 4pm (NZT) on Tuesday 9 July, unless sold earlier.
Goldfinch says the property was design built for Visy as a new corrugated packaging facility.
“The factory and distribution centre was completed in December 2017 and has been maintained in immaculate condition.
“It contains some of the world’s most modern technology to produce the best quality, performance and cost-effective packaging.
“The building comprises a fully sprinklered, high stud warehouse with an extensive canopy-covered loading dock and well-appointed offices and amenities.
“It sits on substantial site with full drive-around truck access, abundant car parking and plenty of room for future expansion.
“Its excellent location alongside Hamilton International Airport provides good access to the key North Island centres and a strong local labour pool.”
Visy Industries was established in Melbourne in 1948 and has grown to become one of the world’s largest privately owned paper, packaging and recycling companies.
It provides high quality, innovative and sustainable packaging products and solutions.
The company operates more than 120 sites throughout Australasia with trading offices across Asia and Europe.
The facility at 122 Ingram Road was built as the company’s existing corrugated packaging facility at Wiri, South Auckland, reached capacity.
Andrew Gleason, General Manager of Visy Board New Zealand, says the impetus to expand came from a growing focus on export supply chains associated with food processing, fruit, produce, meat and dairy products.
“This advanced, new plant is designed with our customer base in mind and enables us to be local and focused, providing the best quality and cost effective corrugated packaging for our customers.”
Visy is selling the property on generous leaseback terms, including a parent company guarantee.
The 20-year lease to Visy Board (Hamilton) Limited contains five rights of renewal of 10 years each, extending the final expiry date to 2089.
The facility has a net lettable area of 36,320sq m, most of which is dedicated to manufacturing and distribution.
The 32,062.6sq m warehouse has a stud height of 8.4m at the knee, rising to 13.4m at the apex.
A large canopy of 3,222.5sq m adjoins the northern side of the warehouse, providing a protected loading area.
The 684sq m office and amenity area adjoins the warehouse at the eastern side.
The substantial 85,105sq m site provides drive-around truck access, on grade manoeuvring and yard areas.
The property, located to the south of Hamilton, is zoned Airport Business under the Operative Waipa District Plan.
It fronts State Highway 3 a short distance from the SH21 arterial intersection, which provides quick access to Glenview, Hillcrest, Hamilton East and Dinsdale. It benefits from high passing traffic counts in excess of 20,000 vehicles per day.
The property is within the closest significant industrial precinct to the Peacockes residential growth cell.
Peacockes is subject to a Government Housing Fund grant, which will provide an additional 8,000 homes over the next 30 years and support significant growth in this area.
The Hamilton Airport location is readily accessible, being within 10 minutes from many of the city’s main residential areas.
It is a prime location for large industrial users, with occupiers including the 6,200sq m Torpedo 7 distribution centre, Pacific Aerospace, Smiths, CTC and Shaw's Wire Ropes.
New premises for Tyreline and a 30,000sq m Trade Depot will commence construction this year.
Hamilton is New Zealand’s largest inland city, located at the centre of one of the richest agricultural and pastoral areas in the world.
It sits at the heart of the North Island’s Golden Triangle, within 140km of both of New Zealand’s main sea ports at Auckland and Tauranga.
The Golden Triangle is home to half of New Zealand’s population, including 156,800 residents in Hamilton. The city is New Zealand’s second fastest growing population centre after Auckland.
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