A 3.2ha property at 79 Carbine Rd and 10 Clemow Dr, Mt Wellington, has been purchased by NZX-listed Kiwi Property for $27.1m.
The property, immediately adjacent to the entrance of Sylvia Park shopping centre, was marketed for sale by tender by Sunil Bhana of Bayleys Auckland and Steve Orr of Bayleys Warkworth.
Kiwi Property chief executive, Chris Gudgeon says when combined with existing landholdings on Carbine Rd and Clemow Dr, the aquisition enables the company to consolidate a strategic 7.7ha landholding with a road bridge connection to Sylvia Park over the railway line.
"We have no immediate plans to redevelop the land. However, given our world-class town centre vision for Sylvia Park and Mt Wellington's status as a Metropolitan Centre, it makes good sense for us as a long-term investor to increase our landholdings in this strategic location," Gudgeon says.
"Kiwi Property's landholdings in Mt Wellington now total over 30ha, including the main 20.4ha Sylvia Park Shopping Centre site."
Improvements on the property comprise a cool store, industrial buildings, a truck fuel stop and temporary structures for office and storage. The property is leased to eight tenants, including Fonterra and VINZ, with current passing income of $1m per annum and a weighted average lease term of 4.77 years.
Kiwi Property now has three expansion projects underway at Sylvia Park Shopping Centre, including a new dining lane, office building and multi-level carpark. A fourth development project, comprising a retail galleria expansion and carpark, is in an advanced planning stage.
Orr says that because the land is held in two titles, each could be redeveloped separately.
"Fonterra's new eight-year commitment to the 10 Clemow Drive title increases its appeal as a long-term hold, but then the demolition clause in the lease means that land could also be redeveloped at an earlier stage. There are many angles to explore."
Bhana points out Mt Wellington is regarded as one of New Zealand's best industrial locations.
It had undergone substantial growth and infrastructure improvements as well as a significant change of use in parts of the precinct led by the development of the Sylvia Park Shopping Centre.