An industrial property having one of the country's longest running tenancies with the company occupying the site for 144 years is for sale in Thames on the Coromandel Peninsula.
Occupying land in Beach Rd, Brown St and Queen St in Thames, the freehold property comprises 11 titles, which are currently leased to engineering and foundry firm A&G Price Limited. The business dates back to 1868 making it one of New Zealand's oldest companies.
"The sale represents an opportunity for an investor to take over a property with long term cash flow from a long established tenant," says Sunil Bhana of Bayleys who, with colleagues Mary Walker and Mike Houlker, is marketing the buildings and land in one parcel through a tender process closing on May 21.
The property,with a capital valuation of $4.11 million, is zoned Service Industrial and encompasses buildings at 103, 108, and 210 Beach Rd, 607 Brown Street, and 907 Queen Street totalling 16,262 sq m on a land area of about four hectares.
All 11 titles have lease terms of 15 years commence in 2010 with rights of renewal of a further three years. The property is currently earning a total $496,400 plus GST per year.
"Given the multiple titles, the property offers flexibility to redevelop in the future while the substantial land holding and low site coverage of only 38 per cent provides scope to add additional buildings to the site if required," Bhana says.
The engineering company was founded in Auckland before it was relocated to its present site in Thames to be closer to its customer base.
Built by the tenant to its requirements in the 1870s, the property was then sold to the current owner in 1995 with more structures added to the site since.
In addition to making a range of mining equipment, the business also manufactured locomotives, building its first steam engine in 1875. This was followed by shipbuilding with recent notable assignments have including wind farm turbines, keels for America's Cup boats, Navy frigate equipment and hydro turbines.
Bhana says the well-maintained complex is predominantly made up of three main blocks: a fabrication plant, main complex made up of offices, a foundry and workshops, and a paint shop with parking areas. The remaining buildings are a 1950s, three-bedroom, weatherboard house at 108 Beach Rd and a textile building at 907 Queen St.
"Considerable maintenance and improvement works has been carried out over the years including several recent replacement roofs, walls, guttering and cladding, and new concrete floors to the fabrication and machine shops.
"The buildings are part of Thames' past and provide a glimpse of previous architecture," Bhana says. "A&G Price has a long history in the region, and is one of the biggest employers in Thames, with 115 staff. Other major employers include, Thames Hospital, Signature Toyota, and several timber mills."
Situated in an established industrial location, the wider surrounding area is made up of mixed development featuring residential, recreation and industrial activity.