Construction is well under way at Southern Spars' dedicated West Auckland premises that has recently been acquired by unlisted property investment company Direct Property Fund.
Managing director Greg Reidy says the company is committed to investing in high-quality commercial property which will generate a positive return for investors.
"We are
interested in properties which have good tenants and sound long-term returns, and Southern Spars' new premises met these criteria."
The building, in a new subdivision off Rosebank Rd, Avondale, will house Southern Spars' New Zealand headquarters. The $17 million project is being undertaken by Auckland-based property company McDougall Reidy with joint-venture partners Haydn & Rollett Construction.
The building is set on a 1.5ha site and will comprise an 8000sq m warehouse with a 12m stud and 1250sq m of office space.
Southern Spars, which recently completed the largest performance super yacht mast in the world at 75m, has taken a 12-year lease on the property.
The company designs and builds masts, booms and rigging for super yachts and grand prix sailing boats. For the past 20 years the company has operated out of the Western Viaduct area and also factories in Pakuranga and on the North Shore.
Reidy says the move to a new location will allow the company to combine its four factories in three locations into one centralised space.
"We were looking to establish a world-class facility for building the world's best spar packages and, when we were presented with the Rosebank Road concept by McDougall Reidy and Haydn & Rollett Construction, it was too good an opportunity to miss," says chief executive David Glen.
Although 95 per cent of Southern Spars' production is exported, Glen says the company is committed to retaining its New Zealand operations.
"Being based in New Zealand keeps us true to the company's heritage and we can continue to foster our excellent supplier relationships. Southern Spars' DNA has always been truly Kiwi and we are looking to develop and grow the business from our NZ roots," said Glen. "We were also conscious that our new premises had to be easily accessible to motorways, given that we need to move large and long masts to the harbour and port areas, and many of our employees travel to work from either end of the Auckland region."
