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Large-scale industrial property goes up for sale
Large-scale industrial property with one of New Zealand’s longest tenancies goes up for sale
An industrial property with one of the country’s longest running tenancies – with the occupier having been on the site for 144 years - has been placed on the market for sale.
Located across Beach Road, Brown and Queen Streets in Thames, the property comprises 11 titles, which are currently leased to engineering and foundry firm A & G Price Limited. The business dates back to 1868, making it one of New Zealand’s oldest companies.
CPD Engineering was founded in Auckland in 1868, before it was relocated to its existing site in Thames, to be closer to its customer base. In addition to making a range of mining equipment, the business also manufactured locomotives, building its first steam engine in 1875. This was followed by building ships. Recent notable assignments have included wind farm turbines, keels for America’s Cup boats, Navy frigate equipment and hydro turbines.
The freehold buildings and land have been placed on the market for sale in one parcel with Bayleys Real Estate, through a tender process closing on May 21.
The sale represents an opportunity for an investor to take over a property with a long established tenant, said Bayleys salesperson Sunil Bhana who is marketing the property with colleagues Mary Walker and Mike Houlker.
“A new owner can enjoy the benefit of long-term cash flow from a well-entrenched tenant in this location,” he said.
The property, zoned service industrial, encompasses buildings at 103, 108, and 210 Beach Road, 607 Brown Street, and 907 Queen Street totalling 16,262 sqm on a land area of approximately four hectares. Built by the tenant to its requirements in the 1870s, it was then sold to the current owner in 1995. Since then additional structures have been added to the site.
Buildings take up 38 percent of the total site. The complex is predominantly made up of three main blocks: a fabrication plant, main complex made up of offices, a foundry and workshops, and a paint shop with parking areas. The remaining buildings are a 1950s, three-bedroom, weatherboard house at 108 Beach Road and a textile building at 907 Queen Street.
Considerable maintenance and improvement works carried out over the years including recently, several replacement roofs, walls, guttering and cladding, and new concrete floors to the fabrication and machine shops.
“These well maintained buildings are part of Thames’ history and provide a glimpse of previous architecture,” said Mr Bhana.
Situated in an established industrial location, the wider surrounding area is made up of mixed development featuring residential, recreation and industrial activity.
All 11 titles have lease terms of 15 years commencing 2010, with rights of renewal of a further three years.
“A & G Price has a long history in the region, and is one of the biggest employers in Thames, with 115 staff. Other major employers include, Thames Hospital, Signature Toyota, and several timber mills.”
The property is currently returning a total of $496,400 plus GST per year.
“Given the multiple titles, the property offers flexibility to redevelop in the future while the substantial land holding and low site coverage of only 38 percent provides scope to add additional buildings to the site if required .”
The property has a Capital Valuation of $4.11 million.
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.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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