A dual-warehouse property in Auckland's Mt Wellington industrial precinct is for sale with a long-term lease to a subsidiary of listed company Skellerup.
Situated in a tightly-held pocket near the Ellerslie-Mt Wellington motorway interchange, the property, at 3-4 Monier Pl, offers exceptional access to markets. It comprises a 3096.5sq m manufacturing and distribution facility on a 5543sq m site with Light Industrial zoning.
Tenant Skellerup Rubber Services Ltd, a wholly owned subsidiary of NZX-listed Skellerup Holdings Ltd, is on a new six-year lease backed by a parent company guarantee. The lease returns $403,000 in net annual rent from August 2019.
Colliers International has been appointed to market 3-4 Monier Pl for sale by deadline private treaty. Offers close at 4pm on Wednesday September 4, unless sold earlier.
Industrial director Todd Kuzmich says it is a chance to acquire a sought-after industrial investment with strong tenant covenant and a superb location.
"Mt Wellington continues to be one of the best performing industrial locations in Auckland, with demand from tenants keeping the vacancy rate stubbornly low.
"The Monier Pl property is superbly located within a cluster of industrial development at the northwest of the suburb, just east of Penrose.
"As a result, it enjoys enviable proximity to the CBD compared with properties in the main Mt Wellington industrial precinct to the south and southeast.
"Monier Pl enjoys excellent access to motorways and main arterial roads with the State Highway 1 interchange and Great South Rd only a short distance away."
Skellerup's lease offers locked-in rental growth of 2.5 per cent per annum. There is also a hard-ratcheted market rental review upon renewal in 2025. Final lease expiry is in 2031.
Rubber Services (1965) Ltd occupied Building 2 from 1986, and the whole site since 1996. The company was bought by Skellerup in August 2005, becoming Skellerup Rubber Services Ltd. It makes and imports compression- and injection-moulded rubber products, sheet rubber, sponge rubber, extruded profiles and technical rubber products.
The division also refurbishes rubber-coated rollers for the printing industry and specialised industrial applications. Parent company Skellerup has been an iconic New Zealand manufacturer for more than a century. Skellerup Industries arose from Para Rubber, founded by George Skellerup in 1910.
Andrew Hooper, industrial director at Colliers International, says the Monier Pl property is easily accessible at the end of a short cul-de-sac.
"Constructed in the 1980s, the property comprises two adjoining industrial buildings with 100 per cent IEP seismic ratings.
"Accessed by multiple roller doors, the buildings are devoted almost entirely to clear-span warehousing of varying stud heights. There is also a smaller area of workshop, office and amenity space."
Building 1 is situated along the northern boundary. It provides 154.8sq m of office and amenity space at the front, with a 944.5sq m factory/warehouse and 128.1sq m workshop at the rear.
The warehouse stud height rises from about 5m at the knee to 8m at the apex. It can be accessed via three roller doors.
Building 2 is 'L'-shaped and runs along the eastern and southern boundaries of the site. Two levels of office and amenities are at the front, providing 182.4sq m of space on the ground floor and 199.7sq m on the first floor.
A lower-stud warehouse to the rear, with a stud height of about 5.5m at the highest point, provides 1487sq m of space. Access is via two roller doors. The large yard to the front of the site provides car parking and truck circulation.
The property's zone allows for a range of uses including manufacturing and distribution.
The Mt Wellington area has seen several modern design-build industrial and trade retail developments completed in recent years.
The suburb has also benefited from the Sylvia Park shopping centre, which continues to expand with new office and dining precincts.