Kopu investment greater than the sum of its parts

Kopu investment greater than the sum of its parts

A property operating as a vehicle recycling yard in the heart of the economic golden triangle, tenanted by one of New Zealand’s premier parts suppliers, has been placed on the market for sale.

The 14,181sq m site at 27 Kopu Road, near the Kopu Bridge just south of Thames, is occupied by five steel-framed buildings with a floor area of 1,316sq m.

The land and buildings of this freehold property are being marketed for sale by Bayleys Hamilton at auction on March 3.

Bayleys Hamilton salesperson Josh Smith said the property was an opportunity to invest in an area ear-marked for significant economic growth.

“The site operates as a specialist automotive recycling yard, providing a location for PartsWorld, which has been on the site for more than 35 years,” said Mr Smith.

Mr Smith said the main building contained offices, a warehouse and staff facilities, and the property had an Initial Evaluation Process rating of 80 percent of New Build Standards. Buildings with ratings higher than 67 percent were generally considered ‘safe’.

“This property is in the heart of the industrial hub for the nearby township of Thames, and is ideally situated for the tenant, positioned between three of New Zealand’s major cities, Auckland, Tauranga and Hamilton,” said Mr Smith.

“Its convenient location heightens the appeal for investors looking to start a commercial property portfolio, who are currently priced out of the Auckland market – on Kopu Road they can take a reasonable commute to eyeball their investment when it suits,” he said.

Kopu is 95kms from Hamilton, 105kms from Tauranga, and 109km from Auckland, and situated at the intersection of State Highways 25 and 26, allowing easy access.

In 2011, a new two-lane bridge replaced the existing single lane bridge, allowing for higher traffic volume and easier traffic flow.

Mr Smith said the property was an opportunity to capitalise on the investment opportunities occurring outside of Auckland, and leverage off the strength of the city’s economy.

“Kopu is just south of Thames, which is the main service centre of the Coromandel Peninsula and the Hauraki Plains. Thames is undergoing a high demand for business and housing properties due to its closeness to Auckland. According to council reports about Kopu’s development, the Coromandel housing stock will need to increase by about 15,000 properties by 2041,” said Mr Smith.

“It speaks to the area that several national brand tenants have chosen the Kopu industrial hub as a base for their businesses, including Placemakers, RD1, and Mainfreight.”

The tenant’s lease runs through until 2018 with two additional three year rights of renewal. The tenancy generates revenue of $78,000 + GST.

“PartsWorld is one of 35 branches in the national chain of automotive dealers, and the Thames branch specialises in the dismantling and resale of Toyota, Nissan, Mazda, Ford, Holden, Opel, Mitsubishi and Daihatsu models,” he said.

“The company prides itself on being New Zealand’s largest auto parts chain, with an online database and ordering system in place allowing nationwide access for clients.”

The company has 29 branches in the North Island, and six in the South Island.

Mr Smith said the facilities on the property were maintained to a high standard, the main yard was metaled with the entrance and carpark concreted, and there was a contamination containment area for the dismantling of all motor vehicles on the site.

“The site is purpose-built for PartsWorld, which is firmly established as a leader in recycling cars parts,” said Mr Smith.

“Recent figures show about 20 million cars a year are trashed worldwide, and because of this, the trend is to produce cars with easily removable and recyclable parts.”

Mr Smith said the property was also appealing to investors due to the proactive Thames Coromandel District Council, which had several initiatives to stimulate economic activity in the area.

“The council has an ambitious plan for the region to make it an excellent place to do business, with strategies to streamline resource consent and planning processes, and improve access to information about doing business in the area,” he said.

“This also includes a District Plan that enables economic growth and business land requirements.”

Josh Smith said the council’s Kopu Doing Business Better programme was actively working with NZTA, Waikato Regional Council, and the Kopu Landowners Association to maximise business opportunities, and ensure it continued to thrive as an industrial business hub.

He said The Kopu Development Group, made up of the local business association, had been set up to look at marketing and investment opportunities within the area.

ENDS

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