Penrose factory complex one to bag
A big Penrose industrial property housing Carter Holt Harvey’s successful paper bag manufacturing business, with a new 10 year lease generating around $1.2 million in net annual rental income, has been placed on the market for sale and leaseback.
The 3.24ha property at 33 Hugo Johnston Drive is being marketed by Paul Higgins, Greg Goldfinch and Dwayne Warby of Colliers International and is for sale by deadline private treaty, with offers closing on December 5 unless it sells before.
“The lease includes rights of renewal for three further terms of five years each,” Higgins says. “With the property’s proven growth location and annual CPI linked rent reviews providing the potential for income growth, this has all the makings of a top quality commercial prop fake rolex erty investment.
“It has all the fundamentals investors are looking for a long lease, strong tenant covenant, prime location and a solid and growing income stream. In addition, there is significant undersupply of quality tenanted industrial investments on offer right now.”
Warby says the restricted supply of fully tenanted industrial properties, combined with high demand from investors taking advantage of continued low interest rate levels, is expected to result in a high level of inquiry from passive buyers across the board including private investors, institutions and syndicators.
The 13,500sq m factory, warehouse and office complex was built in the 1970s and 1980s and includes 11,500sq m of warehouse space. A free standing laboratory and conference building is also on site. “The facility incorporates an industrial plant and a hygiene facility,” Warby says.
“The cement and non food bags are produced in the industrial plant and bags f fake rolex or milk powder, flour and other food products are made in a fully certified hygienic environment fake rolex approved by the International Standards Organisation.”
CHH Paper Bag is the leading supplier of multi ply paper sacks in New Zealand and has manufactured multi wall paper sacks since 1948. It now produces around 100 million bags a year principally for the New Zealand market but also for export to a number of countries. Goldfinch says low site coverage and a large sealed yard to the rear of the property would allow a new owner to expand the property in the future.
Dr Jon Ryder, chief executive of Carter Holt Harvey’s pulp, paper and packaging division, says the move to sell 33 Hugo Johnston Drive is part of a business wide property strategy.
“We took the strategic decision some years ago to divest properties used for light industry and commercial purposes and lease them back, while retaining ownership of our heavy fake rolex industrial sites. This property sale is a continuation of that strategy.”
Ryder says the CHH Paper Bag business has an excellent track record. “The division has experienced significant business growth and services major Australian and New Zealand companies in the sugar, cement and dairy industries.”
The property is located at the northern end of Hugo Johnston Drive, in the heart of Penrose, which is a well established industrial area.
“Occupiers are attracted by the nearby arterial roads and motorways giving easy access to the port and airport,” Higgins says. “Penrose is roughly mid way between Auckland CBD and Auckland Airport, both of which are around 12km from the property.”
Goldfinch says the complex is next door to Goodman’s popular The Gate development, one of Auckland’s top industrial parks.