Cavalier Bremworth portfolio
The national property portfolio of one of New Zealand’s first carpet manufacturers, Cavalier Bremworth, has come to the market via a sale and lease back offering which will see the company maintain its production presence in three cities across the North Island.
The substantial freehold industrial landholdings are in South Auckland, Napier and Whanganui and in each of these locations, Cavalier Bremworth will commit to long-term leases under new ownership.
The three properties in the portfolio are for sale individually or together by way of Deadline Private Treaty (unless sold prior), closing 4pm Thursday July 9, 2020 with Bayleys.
As a total portfolio, the offering features more than 7-hectares of land and has a weighted average lease term of 8.6 years, returning an indicative net annual rental of $3,100,000.
The portfolio sale is being overseen by Bayleys’ sale and lease back specialist project team of James Valintine, Scott Campbell and James Hill based in Auckland, along with colleagues on the ground in Napier and Whanganui.
Valintine says the portfolio – both as a whole and as individual components – makes for a compelling industrial investment proposition.
“The industrial sector continues to attract strong investor appetite – particularly where there is a trusted tenant covenant,” he explains.
“Large, well-located industrial property assets with robust underlying zonings and land values, along with potential for land use change in the future, continue to draw enquiry nationwide,” he says.
“The industrial sector was firing on all cylinders pre-pandemic and appears to have emerged largely unscathed, with an uptick in the sale and leaseback market as industrial owneroccupiers transition into a new business and economic environment.”
Cavalier Bremworth’s main manufacturing facility within Papatoetoe’s industrial precinct is at 7-9 Grayson Avenue and 2 and 9 Brett Avenue, with a total 2.036 hectares of land held across three titles and high site coverage with around 15,375qm of lettable building and yard area.
The property comprises three main warehouse facilities, along with an office and amenity block over two levels, with significant infrastructural investment from Cavalier Bremworth to optimise its production operation.
An indicative new six-year lease to Cavalier Bremworth Limited will apply from settlement at a net rental of $1,600,000 per annum plus GST and outgoings, with renewals.
“While this fit-for-purpose property is serving the tenant well, a longlens view confirms future upside given that prospective brownfields development sites of this scale are thin on the ground in the Auckland region,” says Valintine.
“The proximity and easy access to both State Highway 1, State Highway
20 and Auckland International Airport underpins its current and future desirability.
“Papatoetoe has been identified by Auckland Council as a growth area and revitalisation projects are underway which can only bode well for the wider area’s potential.”
In Hawke’s Bay, Cavalier Bremworth’s Napier yarn spinning plant at 4-6 Waitangi Road, adjacent to the foreshore and in the Awatoto industrial precinct, is on a freehold
24,420sqm site with a total building area of 16,833sqm.
There’s an eight-bay main warehouse complex along with an administration building and other smaller buildings.
The property has good water allocation and rights, and there is an indicative 10-year net lease returning $850,000 plus GST from settlement, with rights of renewal.
Bayleys’ national director of industrial and logistics, Scott Campbell, says this site could have future brownfields development potential down the track and its city-fringe location underscores the investment value proposition.
“The immediate area is largely industrial and seen as a vital contributor to Napier’s production and manufacturing economy,” he says.
“The proximity to Napier Port is a drawcard and the Cavalier Bremworth property itself backs onto the Palmerston North-Napier rail line.
“This industrially-zoned precinct remains in high demand by owneroccupiers and tenants, with low vacancy and limited supply.”
In Whanganui, the freehold land and buildings associated with Cavalier’s yarn spinning plant at 17-19 Leamington Street and 14 Beaumaris Avenue, are also for sale.
Campbell says: “The subject site is around 2.4ha in size and has been occupied by Cavalier Spinners since the 1970s,” he explains.
“The main factory has been extended and altered throughout the years and, coupled with other buildings, the total lettable area is around 11,420sqm.”
The indicative net rental is $650,000 per annum plus GST, with a 10-year term from settlement and renewals.