Opal industrial premises an attractive package for investors
The well-presented industrial facility that for over 20 years has housed a top international packaging business is up for sale in a premier Christchurch location.
The standalone factory, warehouse and office premises in industrial Hornby are fully leased to Opal Packaging New Zealand, generating an annual net rental return of $580,000 plus outgoings and GST.
A member of global giant Nippon Paper Group, Opal is one of Australasia’s leading paper and packaging companies, with operations in Australia and New Zealand plus export offices in Europe, North America and Asia.
Opal is this country’s leading supplier of corrugated cardboard box packaging, with manufacturing sites in Auckland, Hastings and Christchurch.
The company has signed a new six-year lease to occupy the facility in Hornby’s Halwyn Drive until 2030, with two further sixyear rights of renewal. The lease agreement provides for fixed annual rent increases of 2.5%, replaced by market rent reviews every three years.
The freehold land and buildings at 51 Halwyn Drive, Hornby, Christchurch, are now being marketed for sale jointly through Bayleys Real Estate and Colliers.
The property will be sold by deadline private treaty closing on Friday 12 April, unless it is sold prior.
Bayleys salesperson Nick O’Styke said the nearly 5100 square metres of buildings sat on approximately 9355sqm of freehold land with some 50 car parks.
Constructed with structural steel frame and precast concrete panel on concrete floors and foundations, the building has an Initial Evaluation Procedure seismic rating of 68% of new building standard.
“Originally dating from the early 1990s, the property was later extended to the rear providing more warehouse space with drivethrough accessibility,” O’Styke said.
“The more than 3600sqm factory/warehouse is accompanied by office space comprising a bright reception area and a mix of open-plan office, meeting rooms and staff amenities, including an outdoor courtyard. The balance of the premises contain storage areas and a compacting room.”
The Halwyn Drive facility is accessible via multiple roller doors and is complemented by a secure sealed yard and car parking areas with dual automatic entry gates, enabling easy vehicle access and manoeuvrability.
It sits within the Industrial Heavy zone under Christchurch’s district plan, in a coveted industrial area typified by high occupier demand and little availability of sizeable investment properties.
O’Styke said the strategic Hornby location ensured excellent road and rail access and proximity to the city’s CBD, Christchurch International Airport, State Highway 1 and the key transport and logistics hub of Rolleston.
“Hornby is considered one of Christchurch’s most desirable locations for industry for good reason. This well-established industrial precinct has excellent infrastructure to cope with increasing demand, including ample power services and amenities for staff. Occupiers here include a mix of local and national business in fields such as logistics and manufacturing.
“The property for sale represents an outstanding and rare opportunity to secure a large-scale investment here with an entrenched high-calibre tenant. Opal’s commitment to a new six-year lease, with builtin rent reviews providing excellent rental growth, will add further to what is sure to be very wide investor appeal,” O’Styke said.