Leaseback duo in airport precinct

7:51 PM Friday October 5, 2018 Paul Charman

The warehouse office properties at 12 and 16 Andrew Baxter Drive are respectively indicated by green and yellow borders. Photo / Supplied

Industrial sites tenanted by an outdoor equipment manufacturer are for sale at Nos 12 and 16 Andrew Baxter Drive, in the Auckland Airport precinct.

Both are standalone warehouse-office buildings — a 6242sq m property at No 12 Andrew Baxter Dr and a 2025sq m premises at No 16. (A cut flower wholesaler property between the two sites, is not for sale).

The two sites belong to Stevens Products Ltd, which is seeking a sale and leaseback arrangement.

CBRE agents Claus Brewer, Chagalle Ellis and Paul Steele are selling them by a deadline private treaty process, which is due to close at 4pm on November 1, unless they sell earlier.

Steele says industrial stock of this calibre seldom finds its way to market in the tightly held Airport Corridor.

“This precinct is obviously now sought after by third party logistics and freight companies,” he adds.

“Vastly improved road links mean Auckland CBD is 17.5km drive; Wiri Inland Port 10km and SH1 also a short distance away.”

He says both freehold properties have warehouse, office and showroom spaces, with accompanying canopies, car parking and a full concrete yard.

12 Andrew Baxter Drive is set across two bays with roof heights extending up to a maximum of 8.8m. With five slider doors, the property has a clean modern warehouse space maintained in immaculate condition.

The site has an extensive closed canopy, providing excellent weather protected de-vanning areas. An additional vacant 730sq m section of land at the front. Offering exposure to the road, this space would be ideal for further development.

16 Andrew Baxter Drive recently underwent a substantial refurbishment. It has roller doors at the front, side and rear of the property, allowing drive-through flow if required.

Steele says more yard space could be added to extract additional income and improve the efficiency of access and flow. “The design and layout of these properties provides a generic usefulness that will appeal to a wide range of occupiers.

“Both sites are zoned Light Industrial, allowing among other uses: manufacturing, production, logistics, storage, transport and distribution.

“What’s more, this zone allows for future construction up to 20 metres.”

Steele says initial lease-back terms of about $585,000 per annum are on offer — with two rights of renewal; the exact details to be negotiated to the satisfaction of parties involved.

“A leaseback arrangement provides excellent security for the purchaser, enabling planning well ahead for the future. For example, the purchaser, or purchasers, of the two properties will know well in advance if Stevens ever decides to look for a new base. So potentially a purchaser could plan years in advance for the tenant’s departure.

“What it means is that, with lease terms yet to be agreed, a savvy investor can get in now and engage and negotiate the best possible lease-back structure.

“And being suitable for such a wide such a range of uses these properties favour the eventual prospect of leasing them to more than one party.”

Brewer sees overwhelming appetite for industrial and logistics assets in the Airport precinct.

“Vacancy has fallen here to 0.9 per cent, and it is expected to remain low,” he points out.

“With the present low interest rate environment, I see both investors and owner-occupiers with long term exit strategies being attracted here.”