Big industrial has ‘perfect fundamentals’
A view directly above three large warehouse comprising part of the property at 2-8 Jarvis Way, East Tamaki.
A big East Tamaki industrial property with a long lease to an internationally listed company is being marketed as offering “a perfect set of investment fundamentals”.
The property at 2B Jarvis Way, East Tamaki, is for sale through Greg Goldfinch, Paul Jarvie, Charlie Oscroft and Dwayne Warby of Colliers International who are selling it by deadline private treaty closing on September 16 unless it sells earlier by negotiation.
“When it comes to key attributes that industrial property investors are looking for, this one is extremely hard to beat,” says Goldfinch.
“It combines a significant, high profile land holding with an extra-long lease and strong tenant covenant in a fast-growing location.”
The 25,946 sq m site is occupied by container storage business Royal Wolf with a new 15 year lease be signed on settlement and is positioned in the rapidly expanding residential and commercial locality of Flat Bush-Ormiston.
Jarvie says the sale presents an excellent opportunity for an investor to acquire a large parcel of prime land less than two kilometres from the Ormiston Bridge, which marks the main entrance to Ormiston Town Centre – “one of the fastest growing suburban areas in New Zealand”.
Goldfinch says that, given the property’s location, it will be considered a compelling land bank opportunity by many buyers.
“The growth in this area means purchasers will view this as a land play with income - a chance to stake a claim to a big site in a location that continues to grow rapidly.”
The tenant, ASX-listed Royal Wolf Holdings Ltd, is a market leader and industry specialist in the design, hire, sale and modification of new and refurbished shipping containers in Australasia. Its wholly-owned New Zealand subsidiary provides containers for a number of applications including storage and projects, for example the popular Re:Start container mall in Christchurch.
Oscroft says the lease to Royal Wolf earns annual net rental of $715,000 and contains three six-year rights of renewal giving a possible final expiry of 33 years from settlement. “It is subject to fixed annual rent reviews, providing income growth,” he says.
The 2-8 Jarvis Way property identified by a red border.
“We expect this property to be in high demand among investors – especially given the shortage of prime industrial stock in the Auckland market at the moment.”
The level, rectangular site contains 1375 sq m of buildings with the main structures on site comprising three modern, adjoining storage warehouses where maintenance, refurbishment and modification of containers take place. Also on site is a large, partially-sealed yard used for bulk container storage, along with the Royal Wolf head office building.
Multiple vehicle access points are provided via the property’s three road frontages to Ormiston Rd, Jarvis Way and Heritage Way.
Warby says the high profile Business 5-zoned site is ideally positioned on Ormiston Rd.
“Ormiston Rd is the primary link for East Tamaki through Te Irirangi Drive to Flat Bush and the rapidly-developing eastern suburbs of Auckland. Several major businesses have made this location their home including Farmers which operates its distribution centre opposite the property, as well as Lion’s large headquarters and brewery next door.”
Goldfinch says the nearby Ormiston Town Centre is being developed by Todd Property into an entirely new town, with the local population expected to exceed 125,000 people by 2031 and the Ormiston Rd area is predicted to grow with it.
“The area is a proven business location, with major amenities including Botany Junction and Ormiston Hospital servicing the growing local population.
“Kirkpatrick Group has also just purchased 16 hectares of land on the corner of Te Irirangi Drive and Ormiston Rd which they are planning to develop – so there is plenty of momentum in this area.”
Other well-known businesses close by include Hynds Pipes and Wilson Concrete.
Jarvie says Ormiston’s forecast growth is set to provide a significant boost for property values in the surrounding area with Ormiston Rd developing rapidly to accommodate ‘spill over’ businesses to service the requirements of Ormiston residents and provide employment opportunities.
Oscroft say the site has easy access to the southern motorway section of State Highway One via the East Tamaki Rd and Manukau interchanges, a factor which has made East Tamaki one of Auckland’s premier industrial areas.
“With nearby industrial areas such as Highbrook, Manukau City and Mt Wellington, being quickly accessible, as well as Auckland airport and the city’s central business district, this is a very popular business location.”
From left to right; Charlie Oscroft, Greg Goldfinch, Paul Jarvie, Dwayne Warby of Colliers.