Two properties in the heart of Mt Wellington – one with a long-term lease to NZX listed Seeka Ltd and the other a development site close to Sylvia Park – are among 108 commercial and industrial offerings featured in Bayleys' final national Total Property portfolio for 2018 launched yesterday.
Seeka, New Zealand's largest kiwifruit producer, is the main tenant of adjoining warehouse buildings on a 4765 sq m site at 14 Bowden Rd located alongside the South Eastern Highway.
The company, which is listed on the New Zealand stock exchange, last year signed a new lease for eight years and nine months which extends its tenure through until the end of 2025, with one further four-year right of renewal.
"The tenant has been in occupation since 2005, and its signing of a new long-term lease together with its significant internal fitout investment has reaffirmed its commitment to the site," says Sunil Bhana, Bayleys' central & west Auckland industrial manager.
Along with senior Auckland industrial broker James Valintine, Bhana is marketing the property for sale by tender closing 4pm, Thursday, December 6 unless it sells earlier.
"This is prime real estate in the heart of one of Auckland's most sought-after industrial areas with a triple net lease structure to Seeka offering a long-term, hassle-free investment opportunity which is hard to find at the moment in the tightly-held Auckland industrial market," says Bhana. "The property is extremely well located on a cul-de-sac road off Carbine Rd and backing on to the South Eastern Highway. Additional income is provided by the lease of two billboards which employ the property's significant exposure to the busy arterial road."
APN Outdoor has a billboard lease until March 2022, with two further five-year rights of renewal. Together, the two leases will provide the next owner with a minimum net rent of $305,000 a year. The Seeka lease has two-yearly rent reviews to market with the next one due in April of next year.
Valintine says the functional 2823sq m industrial premises plus a large canopy and yard are well suited to Seeka's needs.
The property comprises two main warehouse facilities with a small air conditioned office area. The main warehouse is accessed via two roller doors, one off the road front and the second from under the canopy which also provides access to the second warehouse. This has another roller door opening directly onto the yard.
"The layout provides an excellent all-weather operational area," says Valintine. "Both warehouse facilities have a significant tenant investment, having been fitted out with specialised equipment for their specific use."
Founded in Te Puke in 1980, Seeka has grown to become the largest producer of kiwifruit in New Zealand and Australia. In more recent years it has expanded its operations to include exporting and importing a range of other fruits.
Also for sale at Mt Wellington in Bayleys' latest Total Property portfolio, is a 7833 sq m freehold development site located at 3 Pacific Rise. It too is being marketed by Valentine and Bhana with tenders closing 4pm, Thursday, December 6 unless it sells before that date.
"This is the last opportunity to develop in the popular Pacific Rise business park," says Valintine. "With a childcare facility and cafe adjacent to the site, the property lends itself to a range of uses allowed under its Business Park zoning which has a 20.5m height limit."
The property is positioned at the top of Pacific Rise Business Park which is opposite Sylvia Park shopping centre and within 700m of the southern motorway. The Sylvia Park train station is an easy walk away and frequent bus services are nearby.
The site is currently generating holding income of $236,595 plus GST from multiple leases, mostly for yard activity and car parking uses, all with development clauses, says Bhana.
"It offers a significant development opportunity with substantial, sustainable holding income, providing options to redevelop the entire site almost immediately or simply land bank for the future."