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Home / Property

Hi tech industrial site for tender

NZ Herald
4 Apr, 2014 11:49 PM4 mins to read

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The East Tamaki manufacturing and warehouse complex is leased to Merial Ancare until 2029.

The East Tamaki manufacturing and warehouse complex is leased to Merial Ancare until 2029.

Plant produces animal health products for NZ subsidiary of pharmaceutical giant and pays $615,000 a year in rent

A modern, high quality industrial complex leased to one of the world's largest animal healthcare companies is up for sale in a rapidly developing part of East Tamaki.

The 4749sq m manufacturing and warehouse facility is at 14 Blackburn Rd on a 5444sq m site centrally located in East Tamaki and close to arterial routes.

It is occupied by Merial Ancare, a subsidiary of pharmaceutical multinational Sanofi and is producing net annual rental income of $615,000.

The property is being sold by tender through Roger Wilson and Chris Bayley of Bayleys Real Estate with a closing date of April 17 unless it sells earlier.

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Bayley said the property contained a superior industrial facility that supplied leading animal health products.

"It has a strong focus on the agricultural livestock sector which is forecast to continue to expand because of increasing protein demand in Asia," he said. "The building and its fit-out meets the exacting requirements of a production facility of this nature and it is one of East Tamaki's better quality industrial premises."

The building has a high stud factory and warehouse complex with a 400sq m canopy, extensive laboratory facilities and two levels of office accommodation.

The site was acquired by Quadrant Properties in late 2002 and the building was developed for Ancare NZ and a related company which bought the property in 2003.

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In 2007, New Zealand-owned Ancare sold its business to multinational Merial which also took over the 14-year lease with rights of renewal until 2029.

Wilson says the extensive fit-out is designed to meet the high standards of storage and manufacture required for the production and distribution of animal remedies. It includes systems for control of air and water waste materials.

"Two years of planning, design and consenting went into this building. It is a key domestic and export facility that has involved a considerable capital outlay," Wilson says. "It can't be easily replicated elsewhere."

Merial produces products and vaccines for farm animals, domestic pets and wildlife. It operates in more than 150 countries, has close to 5600 employees and has an annual turnover of more than $3.5 billion.

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In New Zealand, Merial Ancare produces and distributes a large range of products for sheep and cattle as well as domestic pets.

The company's East Tamaki base is on the western side of Blackburn Rd, a short link street between Crooks Rd and Kerwyn Ave, about five minutes' drive from the State Highway 1 motorway.

Wilson said the property was midway between the established industrial development along Harris Rd, a primary arterial route to East Tamaki, and the newer Highbrook locality several blocks to the west.

"A high percentage of the immediate industrial precinct comprises new buildings. It's a vibrant and growing, modern industrial location with a Business 6 zoning permitting heavy manufacturing.

"Further development is expected on several tracts of vacant industrial land near the Merial Ancare property. The opening of the Highbrook SH1 motorway interchange has enhanced access to the surrounding land and will help accelerate development."

Merial Ancare had shown its commitment to the location by also leasing an adjoining warehouse facility at 18 Blackburn Rd.

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"The two properties together provide considerable operational flexibility with additional warehousing, manufacturing and office space able to be accommodated across both sites," said Wilson. "This provides scope for expansion which would obviously open up add-value opportunities for a new owner."

The 14 Blackburn Rd site has parking for about 50 vehicles as well as goods service vehicle access. A one way truck loop provides a safe goods handling route, with the entrance off Blackburn Rd and a shared right of way exit to Crooks Rd.

A central portion of the building used for dispensing manufacturing is subdivided into six temperature controlled Rudnev panel stores through which forklifts gain access via airlock doors to maintain temperature levels. Access to the warehouse is via two 7m wide, 6.5m high steel gantry doors which are protected during the day with security grills.

Other features of the warehouse, which has a stud height of about 7.5m at the knee, are an extract ventilation system and Rudnev panel ceiling linings that house the fire sprinkler system and high intensity industrial light fittings. A trade waste equalisation and treatment tank is buried under the yard.

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