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Refocus by DNZ sees industrial properties on market
Refocus by DNZ sees two prime Ngauranga industrial properties come to the market
Two industrial properties in Wellington’s Ngauranga precinct - each with a strong tenant covenant and both owned by NZX-listed DNZ Property Fund Limited - will go under the auction hammer on 4 December.
The property at 13 Jarden Mile is home to security company Armourguard’s cash processing facility and regional office, while the building at 12 Tyers Road, is utilised as Fonterra’s milk distribution depot.
DNZ Property Fund Limited chief executive, Peter Alexander, says DNZ is selling these smaller industrial properties in order to focus on the company’s larger Wellington assets such as the Meridian building in Custom House Quay and the Johnsonville Shopping Centre. The company is also developing a $155million regional shopping mall at Westgate in northwest Auckland.
Fraser Press and Mark Hourigan of Bayleys Wellington say although the Jarden Mile property was purpose-built for Armourguard in 1998 and has been occupied by that company ever since, the building is reasonably generic.
“This building could suit numerous end users beyond Armourguard’s existing tenancy which has a final expiry of 2022,” says Press.
The building offers 1182sq m of space over two levels and is located on a 968sq m site.
“Under the terms of their lease, Armourguard must give nine months notice of their intentions at lease renewal time – which next comes around in 2017,” says Hourigan.
“A new owner can take confidence in the location with its stellar exposure to the adjoining motorway, and its pivotal position relative to all commercial areas within the Wellington region.
“With an NBS rating of 100 percent, great aesthetics, onsite car parks, and a full net lease returning $250,132 per annum - the credentials of this property stack up and we expect strong interest from passive investors.”
The Tyers Road property was purpose-built for Fonterra in 1999 and is being marketed by James Higgie and Mark Hourigan of Bayleys Wellington.
The 2,731sq m site has a cool store facility and a two-level office amenity block with a total floor area of 1,304sq m, and a 1,000 sq m yard.
Fonterra has signed a new nine-year lease commencing 1 October 2014 with three-yearly rent reviews to CPI and a hard ratchet clause ensuring rent can never be less than the immediately preceding rent level. Fonterra has one further six-year right of renewal. The current net rental is $230,000 per annum and all outgoings are paid by the tenant.
“The chiller plant for the complex has just been replaced bringing it bang up-to-date for Fonterra’s purposes,” says Higgie, adding that Fonterra is also responsible for any maintenance costs and service contracts.
“This Tyers Road location has proved to be ideal for the company given the arterial access and proximity to State Highway One, the Hutt Valley and Wellington CBD.
Given the strength of the industrial sector in recent years, the tenant credentials, and the net lease in place, agents expect the property to sell for more than the current rateable value of $2,150,000.
ENDS
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
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