A portfolio of three totally different commercial properties in the prosperous Waikato town of Te Awamutu has been placed on the market.
The three diverse properties are located in Te Awamutu, and span a combined 2.6061- hectares of industrial-zoned land which has been meticulously developed over the past decade.
The addresses sit in in the heart of Te Awamutu’s compact industrial precinct. Neighbouring properties consist of several automotive repair and maintenance workshops, various farm product retailing depots, animal husbandry companies, and civil works yards.
The trio comprises three adjacent titles, encompassing:
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230 Bruce Berquist Drive – sustaining a technology-enabled going concern self-storage business of 236 individual storage units
249 Bruce Berquist Drive – a multi-tenanted large warehouse with drive-round traffic management flow outside, and currently housing three separate tenancies with the ability to split the building into six tenancies,
301 Bruce Berquist Drive – featuring some 1.2387-hectares of flat greenfield land currently used for vehicle parking, but allowing for potential future expansion.
Combined, the various compilation of tenancies generate annual rental returns of approximately $830,000 plus GST and operating expenses.
The freehold land and buildings at 230, 249, and 301 Bruce Berquist Drive in Te Awamutu are being marketed for sale at auction on October 10 through Bayleys Hamilton.
Salesperson Josh Smith said that while the trio of properties were being marketed for sale as one offering, potential buyers had the option of buying one or two of the properties.
“The three sites offer a broad range of investment opportunities – ranging from tenanted premises delivering established rental income, through to a flat greenfield site which could be developed in any number of permutations – including expanding the activities of the neighbouring self-storage unit business,” Smith said.
First up, the land, buildings, and going concern business at 230 Bruce Berquist Drive, house an easy-to-manage recently completed 236-unit self-storage facility with a current occupancy rate of 70 percent. The fully automated operation includes a manager’s office, and a fully concreted drive-around yard – all of which are surrounded by secure fencing.
"With a 70-percent occupancy rate, there is substantial room for income growth without any additional investment in the infrastructure. It currently returns some $460,000 plus GST per annum from the short term let units, plus an additional $28,000 plus GST from a long-term formal lease agreement with Waipa District Council," Smith says.
Adjacent to 230 Bruce Berquist Drive on the northern corner, is 301 Bruce Berquist Drive – an approximately 1.2387-hectare undeveloped site which presents development opportunities such expanding the storage business, or constructing trade-focused units.
"A ground lease with transport company Go Bus provides a steady annual holding income of approximately $74,024 plus GST and operating expenses, allowing any new owner to explore development options, or of course keep the site leased in its existing very much hands-off configuration," Smith said.
Completing the versatile portfolio is 249 Bruce Berquist Drive which features a modern easy-care 1,885-square metre building – currently split into three tenancies with the capability of being divided into up to six premises – sitting on 5,126-square metres of freehold flat land surrounded by security fencing.
The greater property reflects a horse-shoe format – with sealed parking and vehicle access yards encircling the modern single-storey building on three sides.
Leading New Zealand native honey harvesting and retailing brand Mānuka Honey occupies the rear 1,125 square metre portion of the building premises, while the middle 600-square metres of high-stud concrete-floored warehousing is occupied as a storage plant by soil fertiliser and nutrients supply company Fertco.
Some 160-square metres of separate office space within the building is currently vacant – allowing for significant rental upside when leased.
The core of the modern warehousing and administrative premises was built some 14-years ago, and expanded over the ensuing years as tenants’ activities grew.
The two warehousing portions in the middle and rear of the building are individually serviced by full-height roller doors – allowing for access by large delivery trucks, while the expanse of sealed yard space allows for outdoor pallet storage.
“Constructed with steel framing, iron cladding, and tilt slab walls, the property has high quality street appeal. The street-fronting portion of the property is supported by substantial sealed parking for seven vehicles immediately in front of the prominent office configuration, with parking space for another three vehicles on the yard around the side of the building,” Smith said.
“The property’s vacant office space comprises a modern single-level structure containing a reception space, open-plan work area, stereotypical private offices, staff kitchen, and staff bathroom amenities.
“The design of the building means that in future, there is the potential that the office portion of the building could be integrated with the independent warehouse floor area in the middle portion of the structure. Or of course it could continue to operate in its current configuration to sustain a three tenancy model.”
Located some 30-kilometres south of Hamilton directly on State Highway 3, Te Awamutu has a population of approximately 12,000 residents.
“Te Awamutu – like Cambridge and Morrinsville elsewhere in the Waikato – is increasingly being seen by Hamilton and Waikato-centric firms, as a more cost-effective provincial location in which to be operating from compared to suburban Hamilton zones with their higher land costs and greater traffic congestion,” Smith said.
“Its location has also been enhanced over the past few years by the opening of the Waikato Expressway. Mānuka Honey and Fertco in particular are utilising the Bruce Berquist Drive premises as cost-effective warehousing storage facility. With both firms growing their operations in the Golden Triangle of Auckland/Hamilton/Tauranga, the location perfectly underpins their business operations.”
- Supplied by Bayleys
