A huge new manufacturing and distribution facility, located in Hamilton's growing airport industrial hub, is for sale on long leaseback terms for the first time since it was completed less than two years ago.
"When it comes to institutional-grade industrial investment properties, they rarely get better than this," says Greg Goldfinch, industrial national director at Colliers International, who is marketing 122 Ingram Rd with colleagues Andrew Hooper and Alan Pracy, alongside Chris O'Brien of CBRE Australia. They are taking the property to the global market via an international expressions of interest campaign closing at 4pm on Tuesday July 9, unless sold earlier.
Goldfinch says the property occupies a substantial 8.51ha freehold site and comprises a newly completed, state-of-the-art industrial facility spanning more than 36,000sq m.
"The property was design-built as a corrugated packaging facility and is leased by the wholly owned New Zealand subsidiary of global packaging and paper giant Visy Industries," he says.
A new 20-year lease to Visy Board Hamilton from settlement, earns $3.5 million plus GST in net annual rent; with five rights of renewal of 10 years each extending the potential final expiry date to 2089. Locked-in rental growth of 2.5 per cent a year is bolstered by market rent reviews in 2031 and on renewal.
"An attractive triple net lease structure means the tenant pays all outgoings, including structural costs, making for an ideal passive investment," Goldfinch says, noting that Visy is selling the property on "generous" leaseback terms, including a parent company guarantee.
The complex has a net lettable area of 36,320sq m, most of which is dedicated to manufacturing and distribution.
The 32,062.6sq m warehouse has a stud height of 8.4m at the knee, rising to 13.4m at the apex. A large canopy of 3222.5sq m adjoins the northern side of the warehouse, providing a protected loading area. The 684sq m office and amenities area connects with the warehouse at the eastern side. The net lettable area also encompasses 351sq m of awnings.
The 85,105sq m site provides drive-around truck access, on grade manoeuvring and yard areas.
The property, located to the south of Hamilton, is zoned Airport Business under the Operative Waipa District Plan.
It fronts State Highway 3 a short distance from the State Highway 21 arterial intersection, which provides quick access to Glenview, Hillcrest, Hamilton East and Dinsdale with exposure to high passing traffic counts of over 20,000 vehicles per day.
"The factory and distribution centre were completed in December 2017 and have been maintained in an immaculate condition," Goldfinch says.
"It contains some of the world's most modern technology to produce the best quality, performance and cost-effective packaging.
"The high-stud warehouse is equipped with fire sprinklers and is complemented by the extensive canopy-covered loading dock and well-appointed offices and amenities.
"It sits on substantial site with full drive-around truck access, abundant car parking and plenty of room for future expansion.
"Its excellent location alongside Hamilton International Airport provides good access to the key North Island centres and is also well-placed to draw on Hamilton's strong local labour pool – being within 10 minutes' drive from many of the city's main residential areas."
Hamilton, with 156,800 residents, is New Zealand's second fastest growing population centre after Auckland.
The property is within a substantial industrial precinct close to the Peacockes residential growth cell. Peacockes is subject to a Government Housing Fund grant, which will provide an additional 8000 homes over the next 30 years and support significant growth in this area.
The location is popular with large industrial users, with other firms in the immediate area including the 6200sq m Torpedo 7 distribution centre, Pacific Aerospace, Smiths, CTC and Shaw's Wire Ropes. New premises for Tyreline and a 30,000sq m Trade Depot will commence construction this year.
"This property ticks every box – from its recent build, huge site and highly accessible location, to its strong international tenant covenant and long-term lease," says Goldfinch.
Visy Industries was established in Melbourne in 1948 and has grown to become one of the world's largest privately-owned paper, packaging and recycling companies, operating more than 120 sites throughout Australasia with trading offices in Asia and Europe.
The Ingram Rd facility was built when the company's corrugated packaging facility at Wiri, South Auckland, reached capacity.
Andrew Gleason, general manager of Visy Board New Zealand, says the impetus to expand came from a growing focus on export supply chains associated with food processing, fruit, produce, meat and dairy products.
"This advanced, new plant is designed with our customer base in mind and enables us to be local and focused, providing the best quality and cost-effective corrugated packaging for our customers."