Sale, leaseback offer in red-hot south market
A premium manufacturing facility in Rolleston has been placed on the market, as investors scramble to secure quality stock in Christchurch’s red-hot industrial market.
Located at 53 Izone Drive, the 8000sq m warehouse and manufacturing facility is currently owned and occupied by leading nationwide aluminium joinery company FMI Building Innovation Ltd.
The property is offered to investors as a sale and leaseback with a 12-year lease in place, providing substantial annual income, fixed rental growth and the tenant covenant of a successful and growing national business.
CBRE and Savills are handling the sale of the property in New Zealand’s fastest growing urban area, with offers closing on May 15.
CBRE associate director of investment sales Cameron Darby said the purpose-built warehouse facility was carefully designed and constructed to meet FMI’s long-term requirements for future-proofing the company’s manufacturing capability in the South Island.
“This leading-edge facility was designed and built for FMI by Calder Stewart, with the first stage constructed in 2010 and a significant extension completed in 2019. FMI is committed to this location for the long term, and will be taking a new 12-year lease with rights of renewal potentially extending the lease term to 24 years in total.”
Chad Greer, industrial sales and leasing director at Savills, said FMI has made the decision to sell the property and lease it back for the long term in order to facilitate additional manufacturing capacity nationally.
“FMI employs around 300 people in New Zealand and is currently planning stage two of its $100 million-plus property development in Mt Wellington, Auckland. This project will enable the company to step up its manufacturing capability in response to demand.”
The building includes high-stud manufacturing space, two levels of offices, multiple gantry cranes and several roller doors providing loading access.
The lease to FMI will generate $1,242,632 a year in net annual rental income, growing by three per cent a year through fixed rent increases. Occupying a 1.4ha corner site in the 188ha Izone industrial park, the property is close to inland ports, the Southern Motorway and Christchurch Airport.