Purpose-built warehousing sites placed on the market for sale
Two large scale purpose-built warehousing facilities servicing multiple markets in the Lower North Island region have been placed on the market for sale.
The first is a four-year-old cool store facility in Palmerston North, leased to refrigerated foodstuffs trucking firm Big Chill which delivers produce daily to supermarkets and the foodservice sector from Wellington in the south to Taranaki in the north.
The 1504 square metre facility sits on 7552 square metres of industrial-zoned freehold land in Alderson Drive. Big Chill has a current 12-year lease on the site running through until 2025 with two further seven-year rights of renewal, generating annual net rental of $369,937 plus GST.
Big Chill operates a fleet of 130 refrigerated trucks throughout New Zealand, storing and delivering cartons and pallets. The Palmerston North plant is configured into various freezer, chiller, office space and plant room area – all complying to 100 percent of new build standards.
The company’s trucking fleet has access to the temperature-controlled holding and loading space through any of seven docking bays. The property is fully security-fenced.
Meanwhile, the other location for sale is a 2778 square metre warehousing operation in Eastern Hutt Road - containing the Lower North Island logistics depot for home furnishings and electronics store Harvey Norman. The purpose-built warehouse sits on a 4,108 square metre fully security-fenced freehold section.
Harvey Norman has a current five-year lease on the property running through until 2021 with four further five year rights-of-renewal, generating annual rental of $264,230 plus GST. Rates, insurance and building compliance costs are all paid by the tenant.
Both properties are being separately marketed for sale by tender through Bayleys Wellington. Tenders for both properties close on April 12. Bayleys Wellington salesperson Fraser Press said the quality of both properties, combined with the robust profile of their tenants and their long lease terms, would attract interest from the investment sector.
Mr Press said the Palmerston North cool store facility had been strategically positioned in a format which would allow for future expansion in parallel with Big Chill’s forecast business growth.
“The cool store building and administrative offices were located with some 1,692 square metres of vacant land at the rear of the existing structure. The positioning also allows for high frequency trucking movements on 2,965 square metres of concreted yard at the front of the premises,” he said.
In Lower Hutt, the high stud Eastern Hutt Road Harvey Norman warehousing depot was constructed in 2006 and features three high roller doors, internal offices and mezzanine storage above. The warehouse was constructed of concrete foundations and concrete flooring, and pre-cast concrete wall panels with concrete columns supporting steel portal roof beams.
Offices and amenities on site comprise two administrative spaces, a lunchroom, and separate bathroom facilities. The large 1,438 square metre docking yard and car parking zone were both fully concreted.
“The property is situated amongst a number of similar high-profile warehousing premises serving such brands as niche supermarket retailer Moore Wilson, homey DIY and building trades supplier Carters, and homewares/household importer/wholesaler Seymour’s,” Mr Press said.