Napier property geared up for engineering
One of the biggest multi-tenanted land and building hubs in Napier’s foremost industrial precinct – with considerable potential to develop the property further – has been placed on the market.
The sizeable squarish 4.32ha perpetual leasehold property in Onekawa includes some of the best heavy engineering workshops in Hawke’s Bay.
It encompasses several industrial warehouses and administrative offices spread across some 6072sq m of buildings, all adjacent to large storage yards on a flat, hardpacked surface.
The Angus Place property is zoned Main Industrial under Napier City Council’s District Plan. The classification allows for a wide range of uses by industrial services and manufacturing sectors and recognises proximity to Napier Port,
Napier Airport and the state highway network without impacting residential suburbs.
A 21-year ground lease for the Angus Place property runs through until 2041 at a rate of $335,000 plus GST per annum reflecting land value of $155 per square metre at a lease prescribed rent rate of 5 per cent per annum.
The tenant, Eastbridge, is a longstanding heavy engineering company that specialises in bridge and other infrastructure steel componentry fabrication.
The leasehold land and buildings at 8 Angus Place are being marketed for sale by tender through Bayleys Napier, closing on September 2.
Salesperson Kerry Geange said that with more than 20 years remaining on the current ground rental, the property’s configuration would attract both owner-occupiers
or investors looking to develop the site further.
The combined sub-lease contract income is $433,090 plus GST per annum.
When fully tenanted the property has the potential to generate a rental revenue in the region of $530,000 plus GST per annum.
The individual tenancies comprise:
■ An engineering firm occupying some 12,400sq m on a current lease running through to 2022 with two further two-year rights of renewal, generating annual net rental of $255,000 plus GST
■ A transport operator occupying some 11,007sq m on a new six-year lease, generating annual net rental of $102,270 plus GST
■ A civil works firm occupying some 7582sq m on a new six-year lease, generating annual net rental of $75,820 plus GST
■ Some 9775sq m of industrial land available to lease with the potential to add rental revenue of $97,750 plus GST.