“Buy land,” said Mark Twain. “They’re not making it any more.” In this case, we acquired not only land - 2.9 hectares in Penrose: Auckland’s tightly-held economic engine room - but also high-quality industrial buildings. We are now securing tenants.
As described in our 2015 Interim Report, this was another example of preparation meeting opportunity: this was an off-market opportunity, working directly with Sistema’s owner to put a deal together. What was agreed was that we would buy the portfolio - the property is in five titles - and Sistema would stay on as our tenant until relocating. We completed the transaction in August 2015.
The properties are on Hugo Johnston Drive, and neighbouring Autumn Place, close to SH1, the CBD and the airport via SH20. Transport links will be even better once the recently prioritised East-West link is complete. The zoning is Business 6, which allows for heavy industrial activities. The buildings are modern, of good quality and have all been maintained to a high standard.
“There is intense demand for prime industrial right now,” says Andrew Hooper of Colliers International, our leasing agent on this transaction, “and so these properties are a rare opportunity for logistics, freight, or manufacturing companies. It’s an impressive complex, with CBD-quality office space, modern, high-stud warehousing and drive-through capabilities. The neighbouring tenants are high quality too: companies like Sharp, Carter Holt Harvey and BJ Ball.”
PFI General Manager Simon Woodhams says, “The beauty of this portfolio is that - rather like Sistema’s products - the different components work together or separately. Short term and long term, we expect that to be a benefit.”
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