Silverfin syndicates $23m portfolio
The partial syndication of a $23 million portfolio of distribution centres is expected to generate strong demand among industrialstarved investors.
The four properties are under a 15-year lease to food logistics company Provida in Auckland, Hamilton, Mt Maunganui and Palmerston North.
It is is being offered for syndication by Silverfin Capital, which is seeking to raise $11.65m after buying the portfolio from Provida for $22.2m, a value that has since risen to $23.15m.
Colliers International syndications director Charlie Oscroft said getting a slice of a large industrial land holdling was difficult in the present market.
‘‘I think the market’s been waiting for a strong industrial product for some time,’’ he said.
Silverfin managing director Cheryl Macaulay said the premises were located in sought-after industrial areas on large sites, with convenient access to distribution and transport routes.
‘‘We’re projecting a pre-tax cash return of 8 per cent per annum [forecast to March 31, 2019], paid to investors monthly, which represents a solid return on investment.’’
Oscroft said Provida was a wellestablished New Zealand company providing chilled and frozen goods across the country.
Founded in 1991, the company now boasts 180 staff and a fleet of 70 dual-temperature trucks.
Provida’s portfolio had been developed for its needs and covered a total gross floor area of 7,637 square metres on more than 3 hectares of freehold land, he said.
‘‘The buildings meet 100 per cent of new building standards, and have been designed for future expansion to allow Provida’s business to continue to grow.’’
Three of the properties could be further developed, which gave scope for greater future rental income and asset growth, he said.
More generally, Oscroft said the industrial property market in New Zealand continued to go from strength to strength.
‘‘The industrial markets in Auckland and Tauranga are experiencing record low vacancy rates, while prime vacant industrial space in Hamilton is being absorbed almost as soon as it becomes available.’’
All four premises were in highvalue growth markets and maintained to a high standard, he said.
Colliers broker Kris Ongley said the Auckland premises was on a 9287sqm heavy-industryzoned site at 138 Wiri Station Rd and was well connected to Auckland Airport.
‘‘The premises offer a large amount of modern cool storage and warehousing, with a desirably low office-to-warehouse ratio of 15 per cent,’’ he said.
The Hamilton property is located on a 8040sqm site at 27 Sheffield St, a prominent commercial thoroughfare within the Te Rapa industrial precinct. ‘‘Demand is expected to grow further with the completion of the Waikato Expressway, which will improve travelling times north and south.’’
Built in 2014, the Palmerston North property is on a high-profile corner site at 57-65 El Prado Dr in Milson, part of the Manawatu Business Park.
The 11,535sqm property was strategically located next to Palmerston North Airport, which had a 24-hour operating schedule, and near the main trunk railway line.
The 1145sqm Mount Maunganui property, at 5C and 5D Macrae Ave, was within the region’s most desirable industrial precinct, close to the Port of Tauranga.
Silverfin currently has $160m of commercial property assets under management. Last year it bought Hamilton shopping centre Centre Place South from Kiwi Property for $46.8m, raisng $27.6m from wholesale investors.
McCauley previously owned Commercial Investment Properties, which merged with KCL Property in 2012 and managed $850m of property before it was acquired by Augusta Capital two years later.
Applications for the Provida syndicate close on September 29.