Investment warehouse has multinational tenant
The warehouse is on a long-term lease to a campervan maker. Photo / Supplied
A large East Tamaki warehouse on long-term lease to an established multi-national campervan maker is on the market.
The 3995sq m freehold property at 5 Greenmount Drive is being marketed by Andrew Hooper, Matt Prentice and Dwayne Warby of Colliers International for auction on Wednesday, March 22 unless sold earlier.
The tenant is recreational vehicle manufacturer Talvor Motorhomes Ltd, a division of ASX-listed Apollo Tourism and Leisure, which is well established in the Australasian and US tourism markets.
Talvor is on a six-year lease paying $244,500 net plus GST per annum, with a six-year right of renewal and market rent reviews every three years.
Prentice says established multinational tenants like Talvor are attractive to investors seeking stability and steady returns.
“Talvor is one of Australasia’s leading motorhome manufacturers in its class, putting it in a strong trading position,” he says.
Founded in 1985, the company specialises in manufacturing high-quality, durable motorhomes, caravans and campervans.
Prentice says Talvor’s campervans are built to world-class standards to suit weather conditions in New Zealand.
“The classic Kiwi holiday really is the self-drive holiday, and campervans are the preferred choice for many domestic and international tourists,” Prentice says.
Most of Talvor’s campervans are made for Apollo Motorhome Holidays, the largest privately owned recreational vehicle operator in the world.
“That positions the company to grow as New Zealand’s tourism boom continues,” says Prentice.
“Tourism overtook dairy as New Zealand’s biggest export earner in 2015/16, and last year saw the best visitor growth in 20 years, up 12 per cent, with that trend expected to continue.”
Prentice says Talvor has supplied and will continue to supply thousands of vehicles to Apollo’s four rental brands operating in 28 locations worldwide.
“This history with Apollo Motorhomes has ensured that Talvor vehicles are built to last the challenges of thousands of renters year after year.”
Hooper says industrial landholdings like Talvor’s plant in East Tamaki are highly sought after and usually tightly held.
“This is a rare opportunity to secure a significant freehold property in Auckland’s industrial business engine,” he says.
Hooper says the site is dominated by a 2748sq m warehouse of predominantly cinder block and steel frame construction.
“This large universal warehouse space has strong appeal to industrial users making this a great investment for the future.”
The building includes 192.8sq m of office and amenity space on the ground floor. More office space is available on a similarly sized mezzanine which also has 86.8sq m of storage.
The site’s substantial road frontage is passed by almost 220,000 vehicles a year, giving the property high exposure and fantastic signage opportunities.
“The property is zoned for heavy industry and there’s not a lot of heavy industry zoned land still available, so those limited options make this a desirable investment,” Hooper says.
Warby says Greenmount Drive is a well-established industrial road linking Harris Rd to Ti Rakau Drive — both of which are main arterial roads.
“The property is in a strategic location, with good road links to the Southern Motorway via Highbrook Drive interchange,” he says.
“The motorway gives easy access to the airport, port, CBD and other business areas within the region.
“Nearby industrial areas such as Manukau City and Mt Wellington are within minutes’ drive, and the property’s access to the wider East Auckland region is second to none.”
Warby says amenities close by include the Botany Town Centre, which provides a wide range of goods and services.