A substantial property in New Plymouth’s heavy industrial area, with a strong tenant covenant from a Kiwi-owned and operated pallet manufacturer, is an attractive investment option, particularly considering near record low vacancy rates in the area.
The modern warehouse and associated buildings at 70 Corbet Road total 6,073sqm (more or less), located in a prime position amongst Bell Block’s industrial precinct.
Bayleys salesperson Iain Taylor says strong lease terms to national pallet manufacturer and distributor Timpack Industries underpins the property’s attractiveness, with the business operating in a high-growth sector.
“Appetite for e-commerce has skyrocketed over the last decade, and demand for packaging products to deliver goods safely and sustainably has grown exponentially, while recent disruption to global supply chains and freight delays have seen consumers look locally for products.
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“At the same time, there has been a significant increase in the need for warehousing, storage and manufacturing space proximate to logistics hubs which allow businesses to increase production, store goods and fulfil growing consumer requests,” Taylor says.
“Timpack has occupied the premises since expanding its business to New Plymouth in 1999, and it now has eight processing facilities throughout New Zealand, specialising in the production of pallets, bins, and drums made from New Zealand radiata pine.
“A centrally-positioned site within New Plymouth’s premier heavy industrial precinct allows the tenant to take advantage of proximity to freight and logistics businesses which are major consumers of these products,” Taylor says.
Timpack Industries occupies the premises with a net rental of $420,000pa plus GST and operating expenses and has more than four years remaining on the current lease term. There are two further three-year rights of renewal remaining.
Taylor is marketing the Corbett Road premises for sale with Bayleys Taranaki colleague Darryl Taylor.
The property is offered for sale by way of deadline (unless sold prior), closing at 1pm on Thursday, 29 September 2022.
The property comprises 3,100sqm (more or less) of clear span warehousing with a canopy, attached offices and amenities.
Additional improvements include two sizeable dry storage buildings and an ample sealed yard with metaled hard stand areas.
“An extra-large 539sqm canopy provides all-weather cover for supply which supplements 976sqm of enclosed rear storage and 1,110sqm (more or less) of rear dry storage,” Taylor says.
“Offices and amenities over 248sqm feature an additional 99sq m (more or less) mezzanine or staffroom/storage.
“Set on a large 2.0577ha site, the premises ensures excellent heavy vehicle movement in and around the buildings, providing more than 10,000sqm (more or less) of secure, lay-down storage.”
Taylor says the central Bell Block precinct has recently benefitted from a sharp rise in underlying land values driven by intense industrial development and residential projects in surrounding areas.
“Bell Block’s commercial district and primary residential catchment are less than 1km away, and the central retailing district is a further 15 minutes drive to the west.
“Corbett Road is a feeder to Devon Road (State Highway 3), the main arterial route from New Plymouth leading north to Hamilton and west to the city and Port Taranaki.
“Logistically, the site’s features are excellent and present an A-grade investment opportunity with substantial upside from future growth.
“Tight supply of available industrial land for development continues to influence rising rental rates for quality properties and the growing residential catchment adds another layer of demand for local commercial and industrial activity.
“This shortage of suitable industrial premises exacerbates the already established halo effect of an industrial shortage nationwide.
“Operators are being pushed out of main centres and into well-placed regions in search of availability and rental rates which ease the pressure on their top lines,” Taylor says.
- Article supplied by Bayleys
