A large, modern industrial property in sought-after Albany is for sale with Kiwi business success story EasiYo as its long-term tenant.
Founded as a family business in 1992, EasiYo has since grown to become a household name thanks to the global success of its make-at-home yogurt products.
The company is wholly owned by South Island-based Westland Milk Products, which was purchased by Chinese dairy giant Yili Group for $588 million earlier this year.
Yili is Asia's largest dairy company and last year ranked as the third best-performing food company in the world.
Jimmy O'Brien, Director and General Manager of Colliers International North Shore, says the strength of these companies underpins the tenant covenant on offer at 6 John Glenn, Albany, Auckland.
"Originally built by well-known construction firm Haydn and Rollett, the property has been occupied by EasiYo Products Limited since 2009.
"With EasiYo on a five-year lease returning $431,118 plus GST in net annual rent, this is an excellent industrial investment opportunity with solid long-term returns."
The property is for sale by deadline private treaty with offers closing at 4pm on Tuesday 15 October 2019, unless it is sold
O'Brien says it is an extremely functional industrial facility, making it suitable for a range of tenant requirements.
"The property offers a visually appealing office, a high stud warehouse and 41 on-site car parks.
"The flow of goods is easy to control thanks to three separate site access points, a large secure yard, extensive canopies and four roller doors.
"It is also very well located in an area that has attracted many substantial and multinational companies.
"The property is situated on a prominent corner site close to William Pickering Drive – a major arterial through the popular North Harbour Industrial Park.
"All of these factors should make the property highly sought after should EasiYo decide to move on upon final lease expiry in August 2023.
"Before this, there is an opportunity for rental uplift upon a market rental review in 2021."
Mike Ryan, Industrial Director at Colliers North Shore, says tenant EasiYo is a true homegrown success story.
"The company was founded after school teacher and engineer Len Light devised a system to make fresh and affordable
yogurt for his children at home.
"With his wife Kathy, he launched the first EasiYo products at the Auckland Home Show in 1992.
"From those humble beginnings EasiYo has gone from being a much-loved local favourite to a huge national and later global success story.
"EasiYo Yogurt is now manufactured in both New Zealand and the UK and exported globally to be enjoyed in homes all over the world."
The company was purchased outright by Westland Milk Products in 2010, a year after moving to its Albany facility.
Based on the West Coast of the South Island, the company draws on 150 years of dairy farming expertise in the region.
Westland's farmer shareholders voted overwhelming in favour of selling the cooperative to Yili Group in July this year.
It is now wholly owned by Yili after the Overseas Investment Office and the High Court cleared the sale.
Yili describes its purchase as a significant breakthrough for global expansion. The move also aligns with EasiYo's growth trajectory, given the company has long worked at expanding its Asian markets.
Ryan says EasiYo's Albany property comprises a 2,745sq m warehouse/office facility and 798sq m yard on a 4,826sq m freehold site.
"The 1799.5sq m warehouse has a 7m stud height and good lighting from translucent panels and high bay lighting. The
building also has 518.3sq m of quality office space over two levels."
The property is positioned within the North Harbour Industrial Estate, a relatively new although established industrial subdivision which enjoys a central position in relation to the surrounding and expanding North Shore urban areas.
The locality enjoys strong demand from both investors and tenants.
John Glenn Avenue is on the westernmost corner of the intersection with Unity Drive, some 150m from William Pickering Drive.
Excellent access to the Northern Motorway is available via Upper Harbour Drive or alternatively Tawa Drive to the north.
Travelling times to and from Auckland's CBD are about 15 minutes outside of peak hours.