Finding right formula at Wiri
AWiri industrial property — purpose-built last year for a long-term-tenant exporting baby formula — is on the market for sale. The substantial 6152sq m business park property, at 12 Harbour Ridge Dr, is being marketed by Paul Steele, Chagalle Ellis and Bruce Catley of CBRE. The sale is to be by deadline private treaty closing at 4pm December 6, if not sold earlier.
“Quality industrial properties of this calibre, particularly those offering long-term income streams and fixed rental growth are extremely scarce at present,” Steele points out.
“This one is near Auckland Airport, Wiri Inland Port and state highways.”
The property was designed for infant milk formula manufacturer NBL, which has a 10-year-lease with two 5-year rights of renewal.
The lease returns net rental income of $632,980pa plus GST. Fixed annual rent increases of 2.5 per cent are built in and the lease, which allows for a final expiry in 2038, is backed by a 12-month ANZ bank guarantee.
“Given the combination of immediate and longer-term income potential, we’re expecting this remarkable property to galvanise investor attention — from private individuals through to larger syndicates.”
NBL specialises in the sourcing, blending and packaging of milk powder for export, capitalising on the strong demand for New Zealand dairy products throughout Asia.
Ellis says the property will be sought after due to the current demand for quality industrial properties in the Wiri industrial hub.
“Whether it’s the current use by an infant milk formula manufacturer, or the ability to be repurposed for logistics operations, properties like this — particularly of this size and quality — are poised to capitalise on future growth and warehousing needs.”
Its office-warehouse facility, facing on to a reserve within Stonehill Business Park, was built by industrial property developer Euroclass.
There is a 3500sq m warehouse; a two-storey 492sq m office and a
24m-wide canopy, which is enclosed on three sides to shelter devanning work.
The tilt-slab warehouse has a
10-metre-stud, rising to 11.4m at the apex, with access is via two over-sized roller doors. Attractive two-level offices have views across the operating yards and out to Manukau Harbour.
The site has two entry points, providing staff parking and access independent of the working yard.
Steele says that layout and specification would suit a wide range of operations.
“The stand-alone offering provides a solid and flexible industrial property. NBL is investing about $8m on fit-out to further develop the site into a state of the art milk powder processing facility for various product lines including infant milk formula. This investment, coupled with the 10-year-lease term illustrates the tenant’s long term investment and vision for this property”.
CBRE managing director Bruce Catley says the fixed annual rent increases mean solid growth for investors, relative to current market rates.
“From the tenant funded fit-out to the lease term, the current tenant is heavily vested in this site.
“Its key export market of China recently tightened regulations for the import of dairy products, which has proven a real barrier for some operators. However, NBL’s confidence in the future is evident from its level of investment at 12 Harbour Ridge Drive,” says Catley.
“For landlords, this property means certainty of returns; reliable cashflow and the opportunity to play a part in the growth of the industry taking New Zealand milk powder to the world.”