Commercial real estate agency Savills has come out of the Covid-19 lockdown with 2 East Tamaki industrial sales totalling $32 million.
Savills agent Paddy Callesen said both deals began before Covid-19 took effect and were negotiated offmarket through the lockdown, presenting significant challenges for all parties involved: “Covid has altered several of the assumptions that are factored into value modelling, for example rental growth & residual value dynamics. This meant the negotiations were much more complicated than usual.”
Overseas Investment Office approval added to the delays for the Ross Reid Place deal, he said.
That property is included in Stride’s new joint venture Industre fund.
Argosy Property bought 80 Springs Rd in 2007, when it was a listed trust, for $9,802,500, reflecting an 8.2% purchase yield, in a sale & leaseback arrangement with Fisher & Paykel Appliances Ltd.
Before this new sale, Argosy fully refurbished the 1970s building, including removal of asbestos, a brand new roof, resealed yards & corporate-grade offices, and the property has been sold vacant.
The new owner will lease it to national online retailer TSB Living Ltd.
Jesh Jaskiewicz of Savills said: “East Tamaki industrial property continues to be a supply-starved market, with the area’s central location & good transport links making it highly sought after among occupiers.”
1 Ross Reid Place:
Features: 16,249m² site on the corner of Allens Rd, 5143m² warehouse & office building constructed in 1987 for Fisher & Paykel Appliances Ltd, which still occupies the property under parent company Haier (trading as Facteon Ltd); 2977m² of surplus land isn’t included in the leased premises
Rent: net passing income $754,239/year; 8-year lease, 2 6-year renewal options, currently in first renewal period; the sale represented a 4.85% yield on income, plus $600/m² on the surplus land
Outcome: sold by Synergy Properties Ltd to Stride Property Ltd for $15,522,500
Agent: Paddy Callesen
80 Springs Rd:
Features: 15,129m² site fronting Harris Rd, 9825m² net lettable area
Outcome: sold by Argosy Property Ltd to an owner-occupier for $16.5 million, 2.3% above the $16.1 million book value, settlement scheduled for 27 August
Agent: Jesh Jaskiewicz
1 July 2020: Stride’s Industre joint venture starts operations
5 June 2007: ING trust does swap & leaseback to buy at Albany & East Tamaki
Attribution: Savills, Argosy.