A modern North Shore industrial unit occupied by a New Zealand subsidiary of the giant Australian multi-national Wesfarmers is for sale for the first time since it was purpose-built for the company 15 years ago.
The 2472sq m industrial building designated Unit A, at 19 Douglas Alexander Parade, is in the popular North Harbour Industrial Estate at Albany.
"The unit has been put up for sale by a private investment partnership that is divesting its portfolio," says Matt Mimmack of Bayleys North Shore Commercial who is selling it by tender, closing December 5, with colleague Laurie Burt.
"Most well-leased property like this is tightly held because commercial property income yields are still much higher than bank deposits," Mimmack says.
"This unit is occupied by one of the largest companies on the Australian stock exchange and industrial properties with tenants of this calibre don't come on the market very often."
The building has recently been refurbished for Wesfarmers Industrial and Safety NZ, which has been there since 1998. The extensive retrofit included the installation of a sprinkler system and three-phase power.
The company has an eight-year lease from 2010 with two rights of renewal totalling eight years, making the final expiry date 2026.
WIS NZ is owned by Wesfarmers, a major Australian corporation based in Perth, with interests in supermarkets, department stores, home improvement and office supplies, coal mining, energy, insurance and industrial safety.
The ASX-listed company has grown considerably over the past decade, with annual operating revenue of A$50 billion ($56 billion).
The Albany property is situated in the northern portion of the North Harbour Industrial Estate.
When built in 1998, Unit A was the first stage of a multi-unit development on the site. It has a landscaped area of lawn and gardens at the front of the building, 36 parking spaces and container drop areas.
"It was designed and built to the specific requirements of New Zealand Safety but allows for future use flexibility with an administration office above a showroom at the front and a large central warehouse and three smaller warehouse bays to the rear, all with motorised roller doors providing the ability to split the warehousing," Mimmack says. "It is a well presented industrial facility close to motorway interchanges and local cafes."
Mimmack and Burt, in conjunction with James Kidd of Bayleys North Shore Commercial are also marketing another smaller industrial property in the North Harbour Industrial Estate at nearby Piermark Drive.
The prime 610sq m road-front unit, at 9A Piermark Drive is for sale by negotiation with vacant possession and has a capital valuation of $1,125,000.
"Built in the 1990s, this modern building features ground floor office and showroom areas and first floor offices at the front which are carpeted, air-conditioned and semi-partitioned with amenities," says Burt. "The high stud warehouse component of 184sq m at the rear is suitable for a variety of uses such as assembly and storage and it has roller door access."
Additional features of the premises include data cabling and a security system, 15 car parks, container drop areas and opportunities for signage due to its road front position. "The overseas owner has decided it's time to cash up and is motivated to sell. The premises would particularly suit an owner occupier who is looking for a high ratio of showroom and office space which totals 425sq m," Burt says.
"There is also an opportunity to split the building into two tenancies which would provide an added value opportunity for an investor given the current low vacancy rates in the North Harbour Industrial Estate."
Mimmack says benefits of the North Harbour location include easy access to the northern motorway, a wide integration of supporting industry and a large local labour supply.
"Being a relatively new, greenfields estate, North Harbour is popular with progressive companies due to the high standard of surrounding development, pleasant outlook, flat sites, green areas and parks, accessible amenities and excellent working environment."