Published 25 October 2018, yield corrected 1 November 2018:
NZX-listed Property for Industry Ltd has bought an industrial property at 12 Hautu Drive, Wiri, for a net $12.3 million at a 5.25% yield (originally given as 5.35%).
The 10,946m² site has a 4488m² warehouse with 514m² of office & amenities, and is leased to Kiwi Steel Ltd until 31 January 2030. The lease, currently $645,611/year net + gst + opex, provides fixed rental growth of 3.0% annually. Kiwi Steel is also the tenant at PFI’s 2500m² warehouse development on surplus land at Cavendish Drive, Manukau.
PFI general manager Simon Woodhams said yesterday: “This acquisition increases our presence in Wiri, one of Auckland’s major industrial hubs and a key precinct for PFI. The company currently owns 8 properties in the wider Wiri/Manukau area, representing more than 10% of the portfolio.
“The acquisition of 12 Hautu Drive is in line with the company’s strategy of investing in quality industrial property, and the acquisition will be accretive across a broad range of measures. The acquisition will also increase PFI’s weighting to Auckland industrial property.”
Settlement is expected to take place on 31 October.
Attribution: Company release, agency additions.