A highly functional industrial property in Pakuranga Heights in Auckland is being presented to the market for sale and will appeal to buyers seeking an asset with a steady rental stream that is underpinned by a strong tenant covenant.
9 Canon Place has 2,718sq m of total building area on a 5,835sq m freehold site.
The property is home to C+R Packers, a New Zealand-based company that has been in business for approximately 30 years. They develop, manufacture, and package a wide range of products for the household cleaning, skincare, and makeup categories.
They are firmly established in this location and will begin a new 10-year lease on settlement that includes two further rights of renewal for five years each.
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The lease agreement returns $530,000 plus GST in net annual rental income and includes 2.5 per cent annual increases and five-yearly market reviews that will be appealing to prospective purchasers.
Canon Place is a cul-de-sac that runs off Ben Lomond Crescent in Pakuranga Heights, a popular industrial hub that is populated by multinational firms such as Fresco Systems Australasia, Hella New Zealand, and Automac Engineering, among others.
The area provides excellent access to key arterial routes such as Pakuranga Road to the north and Ti Rakau Drive to the south.
The property is zoned Business Light Industry Zone under the Auckland Unitary Plan.
Colliers Brokers Ben Cockram, Greg Goldfinch, and Dhiru Patel have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 10 December, unless sold prior.
The property has a 1,986sq m warehouse with lunch and workrooms on the ground floor. There is also 374sq m of first floor office space. The facility has an extensive fit-out that is dedicated to the needs of the existing tenant, including specialist production areas.
Cockram, Director of Industrial at Colliers, says the property offers investors the opportunity to purchase an asset with an established tenant.
"With an extensive track record in business, C+R Packers works with high-profile brands to produce quality household cleaning products and personal skincare items. Their commitment to the subject location is evidenced by the 10-year lease that will begin on settlement," Cockram says.
"There are further rights of renewal in place and rental growth mechanisms coveted by buyers. The triple net lease structure will also be appealing for purchasers as an added layer of security for their investment."
Goldfinch, National Director of Industrial at Colliers, says industrial property remains an appealing asset class for investors due to the strong underlying fundamentals.
"As term deposit rates continue to fall, the attractiveness of industrial investments will only grow and this property is an excellent example of a passive investment that has sought-after aspects that purchasers are looking for," Goldfinch says.
"The property is in a tightly held industrial hub with low vacancy rates."
Patel, Associate Director of Industrial at Colliers, says the residential catchments surrounding the property have rapidly grown in recent years, which has coincided with an expanding list of nearby amenities.
"The suburbs of Botany and Flat Bush have seen an array of residential developments take shape that have driven population growth, creating a need for more commercial services," Patel says.
"The Botany Town Centre is a short drive away offering access to a host of national and international shopping options and food and beverage outlets."
- Supplied by Colliers
