Portfolio reflects market strength
Industrial property has continued to prove resistant to the disruptions of Covid-19, says NAI Harcourts general manager as he launched the real estate agency's latest portfolio of commercial properties.
Tony Kidd, NAI Harcourts general manager New Zealand, said demand levels were high for warehouses and storage spaces because food lines and production companies were looking for more storage post-Covid-19.
“The yield is very strong in the sector and investors see industrial as a safer bet than other more exposed asset classes.”
Kidd said there was a wide range of properties on offer in its Key Assets portfolio magazine. Among the highlights are:
Lots 16 an 17 Ossie James Drive, Hamilton Airport
Two lots of 3,500sqm with profile to Airport Road (SH 21) at Hamilton Airport are for sale. With industrial land at Hamilton Airport showing no sign of slowing, these side by side lots are two of the last on offer to purchase. Located in the new Central Precinct, near the Hamilton Airport entrance, the lots can be purchased together or separate.
Development at the Hamilton Airport area generally has ramped up over the past two years, but more so in recent times as developers, investors and owner-operators alike have realised there is more bang for your buck than in rival areas. That development will continue this year, including the start of a $10 million project by Landpower, being the home of the CLAAS Harvest Centre, Waikato, in a land deal facilitated by NAI Harcourts, Hamilton.
While land values have increased over time, they remain well behind those of other industrial precincts, especially Te Rapa. This really sets these two lots apart from other industrial land in Waikato.
Subdivision work to extend Ossie James Drive is timed to begin in September, with separate titles issued in May 2021 (when settlement will be due).
Ossie James Drive is accessed off Airport Road, located near the entrance to Hamilton Airport, in between the airport entrance and Raynes Road. Close to Mystery Creek Road, this industrial subdivision is approximately 15 minutes' drive to Hamilton CBD, and the towns of Cambridge
and Te Awamutu are close by.
10-14 General Gate Avenue,
Kerikeri
Kerikeri Total Storage Solutions, a complex of 109 units is being offered for sale. Located in the heart of Kerikeri at 10-14 General Gate Road, situated on 3,021sqm, and covering three titles. This is a modern comprehensive site with all the up-to-date management systems and security and is the largest provider of selfstorage services in the immediate area. It enjoys very high occupancy with the reported rental received from self-storage was in excess of $230,000 plus GST.
“New Zealand’s self-storage industry continues to offer above average returns to investors as has been evident in recent trends and sales,” says NAI Harcourts sales agent Theo de Leeuw.
Kerikeri Total Storage Solutions is strategically located being the largest major operator of self-storage in the immediate area. Well designed with a drive-through facility and with strong management and security systems to protect this cashflow business, the property is well presented and worthy of consideration.
“Self-storage facilities are used by a wide variety of people, both from the residential sector as well as business users. The most prominent use for self-storage is from residential users resulting largely from increased density of residential subdivisions as section sizes get smaller”, says de Leeuw. Self-storage is a growth-industry and is increasingly being used to mitigate for the effects of increased residential density.
4 Latham Court, Frankton Situated amongst other large industrial and commercial operators such as Gallagher Group, Convex Plastics, and Admark to name a few, a large freehold title of 4,084sqm (approx.) has become available. Selling agent Shaun Cosgrave says: “Industrial landholdings of this nature with low site coverage that provide the opportunity for future growth and development in this area, are rare.”
Located in Latham Court within
100 metres or so of State Highway 1 (Hamilton's western bypass), this property has easy access to major arterial routes north and south. With modern buildings, and a well fenced secure yard as well as fronting the future Southern Links bypass makes this a must consider investment.
The tenant, Splice Construction are a leading civil construction company who have been involved in some of the Waikato’s significant roading and civil construction projects, including FMG Stadium, the Waikato Expressway and track work for the Department of Conservation.
Currently returning $100,000pa plus GST and outgoings, both passive and add-value investors, as well as those looking to beat the low bank deposit rates, will be attracted by the return and likely future capital gains.
67 Seddon Road, Frankton Nestled on the corner of Seddon Road and King Street in a sought-after area on the fringe of the Hamilton CBD is a high-quality 314sqm building utilised for offices. This is a quality property which has been well maintained inside, has a land area of 1,173sqm, and offers generous on-site car parking for
23 cars meaning this property is always sought after by tenants.
The office space is air-conditioned and with an attractive outdoor area, this is a superior option for professional tenants and could also appeal to the owner occupier seeking a high standard of offices whilst enjoying a passive income from two other tenants, with current returns of $100,444 pa plus GST & outgoings.
Near neighbours include Seddon Park Cricket Ground and St John central regional headquarters.
Westport Spa Motel
Also, on offer is a modern 10-unit freehold going concern motel. Located in the main street of Westport in a prime easily found location for visitors arriving from the south, the motel units comprise 8 spacious studio units, and two 1-bedroom apartments. Four upstairs units have spa baths, and two access units have spacious wet-floor showers.
The complex is complemented by a three-bedroom manager's residence, with two bathrooms, including an ensuite for the master bedroom. Each motel unit has a kitchenette and microwave oven, and there is secure undercover bike storage on the premises, as well as excellent offstreet parking for guests’ cars.
Westport Spa Motel is an easy walk from cafes and restaurants, making it a very convenient location for guests.
Athol McCully, of NAI Harcourts Grenadier Business Brokers, says: “This motel business shows good consistent revenue, and an experienced operator could expect to drive further business growth.”