A Thames property to drive investor interest

5:00 AM Saturday February 20, 2016 Colin Taylor

Cool aerial view of the property occupied by an automotive recycling company at 27 Kopu Rd near Thames.

A 1.4 hectare freehold property leased to a vehicle recycling yard in a rapidly developing industrial area just south of Thames on the Coromandel Peninsula is set to go under the hammer early next month.  

Occupied by PartsWorld, one of New Zealand’s premier parts suppliers, the 14,181sq m site at 27 Kopu Road, near the Kopu Bridge just south of Thames, encompasses five steel framed buildings with a total floor area of 1316 sq m.

“The sale of this property presents an opportunity to invest in an area ear marked for significant economic growth,” says Josh Smith of Bayleys Hamilton who is marketing the land and buildings for sale by auction on Thursday March 3.

“Specialist automotive recycler PartsWorld has been on the site for more than 35 years,” Smith says. “The property is in the heart of an industrial hub for the nearby township of Thames and the Hauraki Plains and is ideally situated for the tenant positioned between three of New Zealand’s major cities, Auckland, Tauranga and Hamilton.

“We expect the strategic location will also heighten its appeal to investors looking to start a commercial property portfolio who are currently priced out of the Auckland market.”

The main building contains offices, a warehouse and staff facilities. “The property has an Initial Evaluation Procedure [IEP] rating of 80 per cent of New Building Standard [NBS] with buildings that have ratings higher than 67 per cent generally considered ‘safe’,” Smith says.

The property generates annual rent of $78,000 plus GST with the lease running through until 2018 with two additional three year rights of renewal.

Smith says Kopu is just south of Thames in an area that is seeing a high demand for business and housing properties due to its closeness to Auckland. Several national brand tenants have chosen the Kopu industrial hub as a base for their businesses, including Placemakers, RD1, and Mainfreight.

“According to council reports on Kopu’s development, the Coromandel housing stock will need to increase by about 15,000 properties by 2041.”

True Commercial - 27 Kopu Rd%2c near Thames - main building.jpg

Exterior view of main building occupied by a specialist automotive recycling company PartsWorld at 27 Kopu Rd near Thames. 

Kopu is 95 kms from Hamilton, 105 kms from Tauranga and 109 kms from Auckland at the intersection of State Highways 25 and 26.

Smith says the sale of the property presents an opportunity to capitalise on investment opportunities now occurring outside of Auckland.

“PartsWorld is one of 35 branches in the national chain of automotive dealers, and the Thames branch specialises in the dismantling and resale of Toyota, Nissan, Mazda, Ford, Holden, Opel, Mitsubishi and Daihatsu models,” he says.

“Facilities on the property are maintained to a high standard. The main yard is metalled with the entrance and carpark concreted, and there is a contamination containment area for the dismantling of all motor vehicles on the site.”

Smith says a proactive Thames Coromandel District Council has an ambitious plan to stimulate economic activity in the area and make it an excellent place to do business.

“Of interest to investors, this includes strategies to streamline resource consent and planning processes, and a district plan that encourages economic growth.”

He says the Kopu Development Group, comprising members of the local business association, has been set up to look at marketing and investment opportunities within the area. “It is actively working with the New Zealand Transport Agency, Waikato Regional Council, and the Kopu Landowners Association to maximise business opportunities, and ensure Kopu’s growth as an industrial business hub.