A major manufacturing and distribution facility leased to leading New Zealand carpet and rug manufacturer Bremworth has been placed on the market for sale.
The property, at 7-9 Grayson Avenue and 2 & 9 Brett Avenue, Manukau, is being marketed for sale by Bruce Catley, Managing Director of Industrial & Logistics, Brent McGregor, Executive Chairman and Brad Ross, Senior Negotiator, Capital Markets, at CBRE New Zealand.
The property, which includes 15,375sq m of buildings on a 20,363sq m site, is for sale by deadline private treaty closing on Thursday July 27.
It offers investors a compelling opportunity to acquire a long-leased industrial asset, with high underlying land value and benefiting from the ongoing growth and the excellent skilled labour pool of one of Auckland’s premier business precincts, says Catley.
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“This hardworking manufacturing property comprises three substantial warehouse facilities along with high-quality offices and amenities.
"Bremworth is an NZX-listed company which has a long history of manufacturing quality wool carpets in New Zealand, with a focus on sustainability.
"It offers an premium tenant covenant, along with the security of a triple net lease expiring in 2034.”
Generating annual net rent of $1,681,000, the lease agreement includes fixed annual rent increases and a market rent review every six years (December 2026 and December 2032).
The current rental, which is at an average of $109 a square metre across the property’s lettable area, is substantially below market rent levels.
Furthermore, Bremworth holds the right to renew its lease for an additional six-year term, potentially extending the lease through to 2040.
Bremworth has been in business for over 60 years and manufactures carpets and rugs from 100% New Zealand wool.
In recent years, the company has focused on expanding its international reach. It now has sales offices in Australia, the United States and Europe and is also working to develop new markets in Asia and South America, McGregor says.
“Bremworth has positioned itself at the forefront of the global move by consumers towards sustainable, natural alternatives. The company is committed to sustainable practices and is a member of the Sustainable Fibre Alliance, a group of companies working to promote the use of sustainable natural fibres.”
The property includes three traditionally-designed warehouses, an office building and a workshop. All are well-constructed and have stood the test of time, with new building standard ratings of between 70% and 75%.
The warehouses are internally connected and provide high-stud manufacturing and storage space, along with roller-door external access. Adjacent to the warehouses is a two-level office and amenities building.
The property also features a separate 342sq m workshop, along with an undeveloped and fully sealed lot currently serving as a parking area.
The sale is expected to generate significant demand among long-term investors who recognise the benefits of the triple-net lease as well as the potential long-term redevelopment potential of the site, says Ross.
“Industrial assets are firmly retaining their position as the stand-out performers in the commercial property sector.
"Despite the challenges investors face with borrowing options and high costs,
investment capital remains actively engaged in pursuing opportunities with long-term value fundamentals and well-leased, quality investments such as this are always keenly pursued.”
The property benefits from a dual frontage site in the thriving Wiri-Manukau precinct; seven kilometres east of Auckland International Airport, 20 kilometres south of the Port of Auckland and three kilometres northeast of Wiri Inland Port. With easy access to motorway on-ramps, including State Highways 20, 20B and State Highway One, the property provides excellent transport connectivity.
Ongoing upgrades to Puhunui Road further boost the appeal of this location, attracting businesses looking for ease of transit options.
The property also benefits from its proximity to residential areas, providing a readily available labour pool. Notable neighbouring tenants include Harvey Norman, Briscoes, Frucor Suntory, Cardinal Logistics, Bunnings Warehouse and Eurolift.
- Article supplied by CBRE
