A really cool property in Mt Wellington

5:00 AM Saturday August 15, 2015 Colin Taylor

Elevated view of cold and coolstore for sale at 20 Paisley Place, Mt Wellington.

A large cold store property in Mt Wellington, leased to multinational corporation Americold, has come onto an Auckland market where there is a chronic shortage of prime cold store property available for occupation.  

“In addition there is a real scarcity of prime industrial space in general in the Mt Wellington area,” says Greg Goldfinch of Colliers International’s Highbrook based industrial team who, with colleagues Andrew Hooper and Todd Kuzmich, is marketing the property at 20 Paisley Place for sale by deadline private treaty closing on September 3, unless it sells earlier by negotiation.

“The sale of this property on a freehold 13,630 square metre site presents a significant investment opportunity,” Goldfinch says.

The 9032 sq m building houses a specialty cold and coolstore, with a distribution complex, and two levels of offices and staff amenities.

Constructed in 1999, it includes five cold store rooms, two blast freezers, loading area, container area, seven loading docks and associated plant and engine rooms.

“This is a substantial and impressive facility which includes specialised features such as rapid-opening doors and temperature-controlled ‘curtainside unloading’ truck docks,” Goldfinch says. “The coolstore rooms can also be used as either freezers or chillers.”

In total, the complex has 58,719 cubic metres of storage, Goldfinch says. “This facility offers large-scale purpose-designed storage and distribution capability, with the tenant planning to invest in further improvements to the site to the value of around half a million dollars later this year.”

This property was purpose-built for the tenant, Americold NZ Ltd, in 1999. It therefore provides specialised plant, equipment and space that would be ideal for any cold storage operator, Goldfinch says.

“Given the scarcity of available cold storage premises in New Zealand as a whole and especially Auckland, facilities like this are expected to continue to be in demand among occupiers.”

Americold holds a lease to the property expiring on November 29, 2019, generating net annual rental income of more than $1.6 million. The potential for income growth is included through regular market rent reviews.

The tenant company is recognised as a global leader in temperature-controlled warehousing and logistics to the food industry, offering warehousing, transportation and logistics services around the world. Based in Atlanta, Georgia, it has large warehouses across the United States, Asia and Oceania.

Hooper says the property is fully integrated with an adjoining building on a neighbouring site which is leased to the same tenant. “The combined sites deliver one of the largest cool store facilities in New Zealand – with significant economies of scale that would be difficult to replicate.”

He says Americold has the largest cold storage network in the world with a total capacity of 1 billion cubic feet of storage. “This makes the company a key component in the global supply chain connecting food producers, processors, distributors and retailers to the end consumer.

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Street level view of 20 Paisley Place, Mt Wellington.

“In New Zealand, the company provides temperature-controlled food handling and logistical services to some of New Zealand’s best known consumer brands. It also leases neighboring properties making this facility a key component in its Auckland supply chain.”

Kuzmich says cold storage facilities like this property play a key role in the food supply chain by ensuring that food is stored and distributed to retailers and consumers with minimal spoilage.

“As Auckland’s growing population places greater demands on food supply, the large-scale infrastructure required to efficiently store and distribute perishable goods becomes more and more important.”

He says the property is situated on the southern side of Paisley Place, a small cul de sac within Mt Wellington. Paisley Place extends from Gabador Place which links to Carbine Rd, a main local arterial route. The Mt Wellington Highway, South Eastern Highway and State Highway One are all within easy reach.

“This area’s excellent location and transport access means Mt Wellington has long been considered one of Auckland's premier industrial areas, with a central position between the CBD, port and international airport.”

Property in Mt Wellington is keenly sought after whenever purchasing opportunities arise, he says. “The suburb was one of Auckland’s first industrial areas and it continues to be an ideal home base for many of New Zealand’s well-known and established companies, with its popularity reflected in vacancy rates which are constantly low.”

Among investors, Mt Wellington is a very tightly-held area with a short supply of investment properties, so those that do come on to the market generally get snapped up very quickly, he adds.

Goldfinch says investors are very keen for any good opportunities in the Mt Wellington precinct, “given the compelling supply and demand dynamics at play in the occupier market”.

According to Colliers International’s latest industrial vacancy survey, there is virtually no prime A-grade industrial space available for lease in Mt Wellington with the vacancy rate down to just 0.2 per cent.

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From left to right: Greg Goldfinch, Andrew Reed & and Todd Kuzmich of Colliers international.

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