Big, modern with multiple options

By Colin Taylor

Configuration of East Tamaki complex could suit a variety of industrial businesses

The 8601sq m property at 24-26 Lady Ruby Drive is on a 1.545ha site and has a rateable value of $11.675 million.
The 8601sq m property at 24-26 Lady Ruby Drive is on a 1.545ha site and has a rateable value of $11.675 million.

A big, modern industrial complex in East Tamaki, which long-time occupant Metro GlassTech intends to vacate well ahead of its lease expiry, is being promoted as offering a variety of possibilities for owner-occupiers, investors or tenants.

Metro Glass has outgrown the 8601sq m building on a 1.5454ha site at 24-36 Lady Ruby Drive, East Tamaki, and plans to move in early 2015 to new premises being built.

But its lease runs until March 2021 and is producing net annual rental income of $843,000 with two-yearly rent reviews, the next of which is scheduled for April next year.

Michael Block and Damian Stephen, of Bayleys North Shore Commercial, and John Bolton, Bayleys Manukau, have been appointed to market the property which is featured in Bayleys' latest Total Property magazine. Expressions of interest for sale or lease are being sought, closing Thursday September 26 at 4pm.

Block says the complex has been developed in stages from 1988, to accommodate Metro Glass' growth, and now comprises five separate but connecting buildings.

It has four bays of clean-span factory and warehouse space with a stud height of between 7m and 10m and with gantries running the full length of the warehouse.

There are two levels of about 560sq m of modern office and amenities space at the front of the building with extensive use of exterior glazing providing plenty of natural light.

The owners of Metro Glass originally developed and owned the building but sold the business in 2006 to a private Australian equity investment company with a lease back on this property. It has a rateable value of $11,675,000.

"This represents an outstanding opportunity for investors, owner occupiers or tenants to secure a modern, quality property in a strong location offering flexible options for single or multi occupation," says Block.

He says the configuration of the warehouse space, with multiple roller door entries, could suit a variety of industrial businesses, particularly those requiring gantry cranes. The four bays could also be subdivided to cater for smaller tenancies.

"An owner occupier could negotiate with the landlord to take immediate ownership and have the considerable cash flow from the property while they planned for their relocation to the building once Metro Glass moved out. Or alternatively, they could negotiate a delayed settlement timed to coincide with the building's vacant possession.

"For an investor, there is already income in place from the head lease which runs for the next 7 years.

"This provides plenty of opportunity to secure a new tenant, or tenants, during that time and perhaps negotiate a lease surrender payment from Metro Glass to terminate its lease early," Block says.

Metro GlassTech describes itself as New Zealand's largest glass company. It imports and processes a wide range of glass for windows, doors, balustrades, stairs and many other glass applications for both the residential and commercial sectors.

The Business 5 zoned East Tamaki site it occupies is in five titles and has dual road access from both Lady Ruby Drive and Barmac Place.

Bolton says the property is in one of East Tamaki's most popular locations within easy reach of the Botany retail commercial precinct and the Highbrook State Highway 1 link.

He says East Tamaki continues to be one of New Zealand's most sought-after locations for owner occupiers, tenants and investors.

It provided investors with an average total return in the year to last March of 13 per cent, according to Property Council data.

www.bayleys.co.nz/ 376237

- NZ Herald

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