A highly functional property with a blue-chip tenant on a large landholding in the tightly held industrial precinct of Te Rapa in Hamilton offers buyers the opportunity to acquire a top-quality asset with a strong tenant covenant.
16 Manchester Place, Te Rapa has approximately 2,745sq m of total net lettable area on a 1.9411ha freehold site.
The property is home to Downer who specialise in the transport, utilities, and facilities sectors and have 10,000 employees in more than 120 locations across New Zealand.
Their work involves maintaining and renewing vital infrastructure assets that support the community, while addressing infrastructure needs, and enabling economic growth, which extends beyond physical assets to the wellbeing of people and their communities.
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The total rental income from the property is $845,944 plus GST per annum and Downer’s current 20-year lease runs until December 2029. There are six rights of renewal in place for five years each, leading to a final expiry of December 2059.
Te Rapa is viewed as Hamilton’s premier industrial location owing to its accessibility to the roading networks, CBD, and large residential catchments.
There’s a number of well-known operators in the surrounding area, including Hume, Fletchers, and Mainfreight, while The Base shopping centre is just over 1km away.
Colliers Brokers Brad Johnston, David Palmer, and Greg Goldfinch have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 27 April, unless sold prior.
The large-scale industrial facility offers a mix of workshop space, office accommodation, and a sealed yard that spans 11,900sq m, which houses the Downer Waikato hot mix asphalt plant. This is a key piece of infrastructure for Downer. There are 99 on-site car park bays.
The main office building, built in 2012, has 657sq m of space on the ground floor and 663sq m on the first floor. There’s also a 100sq m extension that is being added to the building by the tenant at their expense.
The 840sq m warehouse is divided into multiple bays and provides functional space alongside office accommodation spanning 75sq m. There’s also a two-level office building attached to the warehouse. Several other smaller sheds and lean-tos complete the site.
Johnston, Director of Industrial at Colliers, says the property provides an outstanding tenant covenant with a well-known occupant.
“Downer’s history in New Zealand began with the formation of the Public Works Department in 1870 and the New Zealand Post office in the 1880s. For over a century, they have been helping to shape New Zealand by successfully collaborating with asset owners to build, maintain, and operate their assets with a whole-of-life approach,” Johnston says.
“They have made a significant commitment to the site through their current lease that includes further renewals.
“There is built-in rental growth on offer for the new owner as the lease agreement provides two-yearly CPI rental reviews with the next one due in December. There are also market reviews scheduled on renewal.”
Palmer, Sales and Leasing Broker at Colliers Hamilton, says the location is sought-after among industrial occupants.
“This is the premium industrial hub in Hamilton, and it continues to experience ongoing demand from operators looking for serviceable premises that meet their needs,” Palmer says.
“With its strategic location given its access to transport and amenities, properties in this location will continue to create strong interest in the market.”
Goldfinch, National Director of Industrial at Colliers, says this property makes for an incredibly compelling purchasing opportunity that offers an appealing mix of an established tenant on a top-quality site in a tightly held location.
“The subject property provides high levels of functionality and the low site coverage of only 12 per cent offers future expansion opportunities,” Goldfinch says.
“We encourage all interested parties to make contact with us immediately to explore their options.”
- Article supplied by Colliers
