Large industrial cold store for sale for a cool $25,000 investment
Proportionate ownership of a large industrial cool store in the heart of Auckland’s logistics and freight hub is being offered for sale to the public.
The 9,023 square metre cold store and distribution building in Mt Wellington is currently owned by AMP Capital Property Portfolio Limited, and is leased by Versacold NZ Limited, part of the international logistics group forming the Americold Realty Trust.
Americold operates 182 modern, temperature-controlled warehouses and distribution centres across the US, China, Canada, Argentina, New Zealand and Australia.
Versacold owns or leases a total of nine sites in New Zealand – offering temperature-controlled food handling and logistical services to some of New Zealand’s best known consumer brands – with a turnover of more than $50 million.
Some 408 proportionate interests in the Mt Wellington freehold land and buildings are being offered for public sale at $25,000 each - with the Offeror’s Statement from fund manager Investment Property Titles Limited projecting an annual cash return of 10 per cent for investors (before accounting for any change in the property’s capital value). Investors can apply to purchase more than one proportionate interest.
The proportionate ownership scheme is being established in accordance with the Securities Act (Real Property Proportionate Ownership Schemes) Exemption Notice 2002. The value of the scheme - inclusive of land, improvements, lease incentives and scheme establishment costs - will be $17.58million. Valuation of the property was established in January this year through an independent valuation.
The proportionate interests are being sold through leading real estate agency Bayleys. The project is being overseen by senior salesman David Gubb.
The Paisley Place property is a single level selective racked storage facility of chillers and freezers serving bulk storage, with an associated administrative office space.
Mr Gubb said improvements to the Paisley Place building included five cool store rooms, two blast freezers, an environmental loading area, container area, seven loading docks, and associated plant and engine rooms. The building and canopy areas have a total lease space of 9,023 square metres and are supported by a glycol cooling system
“The building will be subject to a new 10-year lease, with two additional five year rights-of-renewal providing a total lease term of 20 years. The initial rent generated is $1.615 million. The rent is increased on the second anniversary of the commencement date by 1.5 percent, and thereafter each year by 3 percent, or the consumer price index for the previous year, whichever is the lesser,” Mr Gubb said.
“The property is fully integrated with an adjoining building on a neighbouring site which is also leased to Versacold. The combined sites deliver one of the largest cool store facilities in New Zealand – with significant economies of scale that would be difficult to replicate.”
Combined, the warehouses have a total capacity of 111,000 cubic meters of storage space and are capable of holding 24,000 pallets of stacked product.
“Cold storage facilities like this Versacold premises in Paisley Place play a key role in the cold chain by ensuring that food is stored and distributed to retailers and consumers in a way that minimises spoilage,” Mr Gubb said.
“As Auckland’s population becomes more reliant on perishable goods to fulfil its dietary needs, the large scale infrastructures required to efficiently store and distribute these goods become more and more important to their supply,” Mr Gubb said.
“This Paisley Place warehouse is an excellent opportunity for investors to purchase a significant well located industrial property which is leased to a recognised tenant for a long time.”
Investment Property Titles Ltd manages more than $70million worth of commercial investment property in New Zealand. Applications for the Paisley Place unit title offering close on March 4 - with all subscriptions required to be made on the official application form.
Bayleys has completed the sell down of a substantial number of property syndications in New Zealand over the past 18 months including Repco’s head office in Auckland, the Countdown supermarket in Tauranga, Coca Cola Amatil’s Lower North Island distribution warehouse in Palmerston North, and Bunnings hardware mega-centre in Whangarei.