By Bob Dey
Two Mt Wellington industrial properties worth a total $30 million have been bought this year for syndication.
Colliers Jardine director Michael Judd says the burst of activity after a dry 1998 had brought $35 million of sales, on top of the $8.5 million sale of the Georgie Pie factory
in Wiri just before Christmas.
The largest of this year's sales was $19 million for a high-tech warehouse and logistics centre in Niall Burgess Rd in the Westfield business park in Mt Wellington. It is leased to Stephen Owens' Total Logistics Co.
On Reliable Way in Mt Wellington, the near-new head office and warehouse of Blue Star Office Supplies has been sold by developer Axis Group, also to a syndicate, for more than $10 million.
An owner-occupier paid more than $5 million to Progressive Enterprises for its former 3 Guys distribution centre on Puhinui Rd, Wiri.
Judd says the industrial leasing and design-build markets should strengthen in the next few months because some tenants who had delayed property decisions and concentrated on their core business would be ready to address those needs in stable economic conditions and with business confidence rising.
He also expects owner-occupiers to take advantage of strong yields to seek sale-and-leaseback arrangements with investors.
