Quality meets quantity

Tenants at 39 Randwick Rd include Steel & Tube and Laminex. Photo / Supplied

Comprising three titles, a substantial and multi-tenanted 3.35ha industrial park on Randwick Rd and Pirie Cres, Lower Hutt, is for sale on the fringe of the Seaview industrial area.

Colliers Auckland brokers Andrew Mayne and Andrew Hooper; and John Persico in Wellington, are offering the complex for sale by private treaty on behalf of a private investment group.

Mayne says the vendors are seeking offers from qualified investors with an expected price range around $20 million.

"The vendors are motivated and are keen to meet the market," Mayne says. "This is a sizeable property providing a portfolio of mainly publicly listed tenants in one place. As there are few industrial investments of this scale outside Auckland, particularly with this quality of tenant-mix, this represents a good opportunity to pick up a chunky and easily manageable industrial asset."

The first title at 39-49 Randwick Rd is the biggest at 2.7458ha, while 45 Pirie Cres is 5560sq m and the smallest at 41 Pirie Cres comprises 506sq m.

Mayne says the Randwick Industrial Park has a premium mix of tenants under one roof with 90 per cent of the rental income coming from listed companies that combine to present a five-and-a-half-year weighted average lease term. In total, the property generates annual income of just under $2 million. Tenants include Fletcher Building's subsidiary Laminex, which occupies 22 per cent of the space on a rental of $423,425; Veridian, which takes up 21 per cent of the space at an annual $406,200; Customfleet with 20 per cent at $388,951; Steel & Tube with 17 per cent at an annual rental of $328,576; Trafalgar Storage with 10 per cent at $192,685 annual rent; and Wellington Couriers with about the same space for $190,000 per annum.

Persico says the property has a 124m frontage to Randwick Rd and 40.5m on Pirie Cres. "Access is via both Randwick Rd and Pirie Cres with carriageways wide enough for trucks to easily move around the entire site, which also includes extensive on-site car parking," he says. "Approximately 60 per cent of the site is covered and the land not occupied by building is bitumen sealed."

Four separate buildings totalling 20,042sq m occupy the site. The main structure covers a significant portion of the site and is divided into six separate tenancies. The owner has extensively refurbished the front two tenancies, occupied by Laminex and Steel & Tube, to create a 10m stud, clear span warehouse space.

An office fronts Randwick Rd and a small standalone warehouse-workshop and larger warehouse are at the rear of the main building. The property is bounded by the Hutt River and Randwick Rd. Hooper says the property is about 3km from the Lower Hutt CBD - within easy reach of the State Highway 2 Hutt Motorway and the esplanade at Petone.