OIO approves $362m lease of ex-Lion facility
A Chinese-owned company has been granted approval to go ahead with a $362.7 million lease of a commercial site over 25 years at East Tamaki, in east Auckland.
The Overseas Investment Office (OIO) has granted Waste Management NZ Ltd consent to lease the
5.24-hectare site at 11 Springs Rd. Waste Management Ltd is
50.5 per cent owned by the Chinese government, OIO documents show.
Real estate documents say the former Lion bottling facility has ‘‘fantastic access to [the] East Tamaki industrial precinct, [and is] 13 kilometres to Auckland International Airport, 21km to the Ports of Auckland, and 7km to the Wiri freight hub’’.
The property is owned by NZXlisted Stride Property. A statement on Stride’s website says the industrial site will undergo a $43m redevelopment before the 25-year lease begins.
The redevelopment will include the demolition of existing structures, ‘‘to make way for a purposebuilt 8285-square-metre industrial facility for Waste Management’’.
‘‘Occupying the entire site, the development will provide comprehensive logistics and operational facilities from which Waste Management can both service the Auckland market and oversee their national operations,’’ the statement says.
‘‘Following the completion of the redevelopment, targeted for the quarter ending September 2019, Waste Management will commit to a lease with Stride for an initial 25-year term, with initial net rental of $3.89m per annum and structured rental growth.
‘‘The development is forecast to cost $43m, and the agreement with Waste Management allows for the expansion of the scope of works by up to $23m with an associated increase in rental.’’
In March, Waste Management opened what was described as the country’s first workshop dedicated to converting diesel trucks into electric vehicles.
It plans to convert 20 trucks in its national fleet by mid-2020.