Rayglass factory for sale
The property at 43 Ben Lomond Crescent is used for boat storage, manufacturing and building.
Colliers International brokers are marketing the Pakuranga industrial property now used to manufacture Rayglass Boats.
The sale of the 2395sq m building, at 43 Ben Lomond Cres, is to be handled by Colliers International brokers Shoneet Chand and Dwayne Warby. Generating a net rental income of $216,864, the property will be for sale by auction on October 20, unless sold prior by negotiation.
“The freehold site is positioned on a 4375sq m block of land in Pakuranga Heights, with a highly functional and well maintained 2450sq m industrial facility occupied by award-winning Rayglass Boats,” says Chand.
The tenant now pays about $89 per sq m — as a blended rental rate for the net lettable office and storage/manufacturing building area — which Chand points out is below industry average across Auckland.
“This should provide rental growth in the future for the incoming purchaser as there is strong market demand for well-located and standalone industrial buildings.”
The building has an A grade seismic rating, is fully sprinklered and has a significant power supply; it could be easily be divided for future flexibility. “Industrial investments of this calibre are very popular assets given the freehold nature of the offering and quality of the tenant,” says Warby.
“With interest rates continuing to fall, we have seen more demand in the investment sector and fewer quality opportunities coming to the market. Industrial opportunities such as this tend to attract good interest due to the sector’s traditional stability and hands-free nature which suits many long term passive investors,” Warby adds.
Rayglass is on a six-year lease term, renewed in August 2015, and has a final expiry in August 2021. The lease has annual rental growth built in, and the tenant has been a long-term occupier of the site with the facility fitted out to suit its operational needs.
“This is where Rayglass make their fibreglass hulls and cabins,” says Warby. “From here the completed hulls go off to be fitted out and then sold. It is quite a production line and the building offers a bright and clean environment for this operation.”
Ben Lomond Crescent is a tightly held industrial location within Pakuranga Heights, Auckland. In one of the largest and fastest growing residential catchments in the country, it is a sought after location as evidenced by the lack of vacancy in the area.
“This is a great investment opportunity which provides a highly desirable combination of an exceptional long-term tenant, well maintained buildings with good office to warehouse ratio. It is a generic and flexible industrial facility which will give the future landlord plenty of options,” Chand points out.
Rayglass Boats is New Zealand’s leading boat manufacturer of high quality GRP powerboats from 6m to 12m length overall. They build a wide range of boats, specialising hybrid fibreglass fishing and cruising boats, and an inflatable range.
The business is fully owned by the multi-national giant Brunswick International.
The property is zoned Light Industry under the Unitary Plan, for low to medium intensity industrial activity. With the industrial sector across Auckland experiencing a land shortage, large freehold titles of this calibre will always be highly sought after by tenants and investors.