A food-grade industrial facility in East Tamaki is for sale with a well-established tenant in front, plus a vacant space at the rear.
Located near Highbrook, the freehold property at 1/30 Kerwyn Ave, the property has 1552.7sq m of warehouse and office space across two tenancies.
The front tenancy is occupied by frozen meal manufacturer Foodwise, which has just under four months remaining on its current lease, plus a three-year right of renewal to September 2022.
The rear is occupied by snack food company Chasers, which has no rights of renewal once its lease expires on August 1, although the tenant has indicated they would like to stay on for a further two years.
The property earns $165,621 net plus GST in split-risk annual income.
Colliers International is marketing the property for sale by deadline, with offers closing 4pm May 22, unless it sells earlier.
Agents Jolyon Thomson and Paul Higgins see opportunities for owner-occupiers and investors. "This is a chance to acquire a sought-after food grade facility in a one of Auckland's most well-located industrial precincts," Thomson says.
"Owner-occupiers could have holding income from the rear tenancy prior to making the move in August.
"It offers ongoing rental income from the front tenancy, as well as the flexibility for occupiers to expand once the front lease expires. A new buyer will appreciate the split-risk income the property's separate tenancies provide. There is also the opportunity for rental upside on renewal of the front tenancy and securing a new rear tenant."
The Light Industry zoned property comprises a row of warehouse and office buildings on about 2800sq m of exclusive land. It is on a single title that makes up the western half of a seven-unit development. The neighbouring units are on individual titles.
Higgins says the flexible layout allows it to be split into smaller units like the remainder of the development. "The buildings have a total of seven roller doors while the yard is large enough to provide access, parking and storage for multiple tenancies, allowing the property to be easily subdivided in future.
"This could be a great option for an occupier who wishes to own their own premises but doesn't require an additional rental investment."
The front tenancy comprises 958.7sq m of office and warehouse space, predominantly fitted out for food manufacturing and storage.
A two-storey office of 71sq m, with road frontage to Kerwyn Ave, backs on to a medium stud, food grade warehouse with associated cool stores, freezer and plant room. A detached warehouse behind this has its own additional cool store and freezer.
The food grade fit-out has been maintained to a high standard by the existing tenant to conform to food safety and retail supply standards.
Tenant Super Snack Limited, trading as Foodwise, is a niche food design and manufacturing company specialising in ready to eat meals and meal components. It purchased the Super Snack brand in 2010. Foodwise manufactures fresh, chilled and frozen products, which are stocked on supermarket shelves throughout New Zealand. Its lease earns $107,621 plus GST in net annual rent, with the next market rental review due on renewal on September 1.
The rear tenancy comprises 594sq m of warehouse and office space. An 83sq m internal office area is split over two levels, while 370sq m of the warehouse has been lined as a food preparation facility. Tenant Chasers Food Company Limited pays $58,000 plus GST in net annual rent.
This provides holding income until lease expiry on August 1, after which owner-occupiers can take vacant possession.
Thomson says Light Industry zoning allows for a range of manufacturing, production, logistics, storage, transport and distribution activities.