Property for Industry Ltd has bought the 3.5ha industrial property at 25 Langley Rd, Wiri, for a net $36 million.
The property currently comprises about 10,730m² of warehouse, 1220m² of office & 5930m² sqm of yard. An additional 3240m² sqm of warehouse & 120m² sqm of office is under construction and is due for completion in May 2020. Combined, the property comprises more than 15,300m² of space.
On settlement, expected to take place on 19 December, the tenant, steel fabricator Grayson Engineering Ltd, will start a 12-year lease with fixed rental growth of 2.5%/year.
PFI chief executive Simon Woodhams said last Thursday the return on the initial purchase price was 5.65%.
He noted: “The acquisition of 25 Langley Rd is in line with our strategy, which includes starting to replace PFI’s non-industrial assets with quality industrial properties in sought-after areas, either via acquisitions or by value-add strategies within the existing portfolio.”
NZX-listed PFI has a portfolio of 94 properties leased to 148 tenants.
Attribution: PFI release.