A significant landholding and industrial premises in New Plymouth with a long-term lease in place to a leading Taranaki business, and inherent future add-value potential, has been placed on the market for sale.
The combined 3.14ha site at the eastern end of Connett Road in the Bell Block industrial precinct south of State Highway 3, the main road from the north to New Plymouth, is held in three separate titles.
The main structure amongst the 4844sq m footprint of buildings was built in 2015 for the existing occupier, Symons Group, a successful and evolving transport company which has been in business since 1984, and which solely occupies the whole site.
While there is currently one lease in place across the whole site, the lease structure allows this to be split to reflect the individual titles giving future flexibility for a new owner.
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Truck parking and dispatch operations for Symons are located to the western boundary, there are three centrally-located modern warehouses – one with two-storey offices attached – and to the eastern boundary there’s a large equipment and pipe storage yard.
The large trucking depot includes a drive-through truck wash, workshop and staff amenities, security fencing and internal roading linking the three sites.
The buildings are at 100 per cent new building standard, and the property returns a net income of $640,969 plus GST per annum with a built-in rental growth clause.
It will be sold by tender closing Thursday 9 December through Bayleys.
Sunil Bhana and Mike Houlker of Bayleys Auckland are teaming with Iain and Darryl Taylor of Bayleys Taranaki to sell the Connett Road East property which has an underlying zoning of Industrial C and the flexibility of being held in three titles.
With the industrial sector continuing to dominate the broader commercial property market in terms of returns and capital gains, Bhana said this New Plymouth offering will fit with investor demands for well-tenanted property with future upside.
“Auckland-based investors have been jostling for any large scale industrial opportunities that come up both within greater Auckland and in regional New Zealand,” he said.
“With exceedingly tight supply across the country for industrial stock, and with a documented shortage of development land coming onstream, this property in the thriving precinct of Bell Block will have considerable appeal for investors.”
Iain Taylor said over the past three years, industrial-zoned land values in New Plymouth have doubled, and the Connett Road property has an added advantage being one of just a handful with profile to the State Highway.
“Symons Group have leveraged off this exposure and are well-entrenched on the site which has met their business operational needs across the transport and energy transport sectors.
“With nearly 40 years in the industry, Symons is a very well-known business name both in the region and further afield and has diversified its service offering in response to changing market dynamics – particularly as they are essential service providers.”
Taylor said there have been very few industrial assets of this scale on the market in recent years and, with Symons occupying the entire site and having 6.75 years still to run on its lease, a hands-off investor will recognise the intrinsic value of the property.
“As it’s held in three separate titles, there’s huge upside in the future given the growth being seen in Taranaki and the ongoing demand nationally for industrial assets.
“Bell Block is also consolidating its position as a very strategic part of the New Plymouth story with further growth expected off the back of roading initiatives that will streamline movements around the city and the wider region.”
- Article supplied by Bayleys
