An industrial property on three titles in the fast-growing commercial centre of Kumeu is for sale through CBRE, with a new lease in place to an “outstanding” tenant operating in the civil construction sector.
14 Wookey Lane, 7 Loft Place and 11 Loft Place are being sold and leased back to their current owner-occupier, CLL Service & Solutions Ltd, which holds contracts for a number of major infrastructure projects.
The three titles make up 4,943sq m of land and are being offered as one parcel, marketed by CBRE agents Deborah Dowling, James Lee and Brett Whalley for sale by deadline private treaty closing at 4pm on Wednesday 11 November.
CLL is the largest privately owned piling, ground improvement and construction company in New Zealand. It is a well-established business that has been operating for over 40 years, says Dowling.
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“CLL is well-known and respected in the civil construction sector and has won numerous government and private contracts. The company has a substantial amount of work underway, with a solid pipeline of upcoming projects – making it the type of strong-performing tenant any landlord would be proud to have in their portfolio.”
CLL’s government and private sector work includes involvement in many large infrastructure projects, including electrification upgrades to rail in Auckland and Wellington, motorway upgrades and construction of new motorway systems, city cycleways, large energy sector projects including wind farms and geothermal projects, port upgrade activities, retirement villages, major housing projects, commercial and industrial projects.
The company has significant experience and expertise in all types of piling, retaining wall construction, multiple types of ground improvement, concrete structures including commercial, industrial and residential buildings and bridge construction.
Following settlement of the sale CLL will take a new eight-year lease to all three titles, with further rights of renewal. The lease will generate a total of $248,500 in net annual rental income, with rental growth provisions built in.
The expansive property includes a modern, two-level office building with 500sq m of floor area, constructed in 2005 and recently extended and partially refurbished. This building houses CLL’s head office operations. The site also contains a high stud workshop of around 370sq m in size, with access via four roller doors.
Three vehicle entry and access points from Wookey Lane and Loft Place, as well as ample on-site car parking and a large yard mean the site is ideal for CLL’s requirements, says Lee.
“CLL currently employs around 200 staff and contractors and also has over 90 large items of machinery and equipment, some of which are stored on this site when it is not being used on construction projects.”
The property’s excellent location and tenant covenant mean it is likely to be of interest to many potential buyers, Whalley says.
“Good quality industrial property investments are in extremely high demand at the moment, especially sites which are leased to tenants operating in ‘essential’ sectors such as CLL. We’re expecting significant interest in this opportunity, which offers all the key fundamentals of an excellent long-term investment.”
The Light Industry-zoned, freehold site is located within a relatively new industrial area in Kumeu, surrounded by quality national names occupying facilities built within the last few years, says Dowling.
“This part of Kumeu has really taken off and now has very few vacancies, if any. Part of its attraction is its location within walking distance to the central Kumeu commercial and retail area, along with easy access to Auckland as well as destinations to the north and south via new motorway connections.”
Growth in Kumeu and surrounding localities has been catapulted forward in recent years, with many businesses now choosing to make the area home, she says.
“The north west of Auckland is now a much more attractive business location due to key motorway projects, specifically the Western Ring Route. Strategic transport projects for Kumeu-Huapai have also been mooted, including state highway upgrades and an alternative route for SH16 to support greater growth in Kumeu-Huapai,” she adds.
