528-558 Rosebank Rd
Each of these case studies was written shortly following completion of the relevant development or other significant lease-related event. While accurate at that time, in some cases, circumstances have changed, including PFI’s ownership of the property, the identity of the tenant, property specific metrics (including rent) and/or use of the property.
Overview
In November 2020 we acquired a 4.98 hectare industrial estate on Rosebank Road. The estate is one of the largest land holdings on Rosebank Road and has eight separate buildings leased to five separate tenants, the largest being Etel Limited, who design and manufacture transformers for electricity distribution companies in New Zealand, Australia and the Pacific Islands.
Etel have been the anchor tenant on the site since 2002 and committed to a further nine years as recently as 2019. On settlement the passing rent for the whole property was $3.41 million and the Weighted Average Lease Term was around six years.
A number of things drew us to the site. It’s located just 7km from the Auckland CBD, with good transport links both North and South via the North-Western Motorway. The site is held in two separate freehold titles, and the relatively low site coverage means there is flexibility to extend. Over the medium to long term, for example, we could add further value by reconfiguration, redevelopment or by constructing additional lettable area. Finally, we already had a significant presence in the area with about $130 million invested across five other properties, so this acquisition further consolidates our presence in this area.
“We first looked at this property a number of years ago, so we’ve known about the site for some time” says PFI Portfolio Manager Ewan Cameron. “We are delighted to have acquired this quality industry property, close to city, with good tenants. The presence of a long-term core anchor tenant like Etel coupled with ample opportunity for growth by working with the other tenants on site, will allow us to add to the site’s overall value.”
“At $65.5 million, this is a major acquisition for us, and well above the market average for an industrial property transaction,” adds PFI Chief Executive Officer Simon Woodhams. “Our ability to secure Rosebank Road demonstrates the extent to which PFI can now operate at scale, and our ability to transact in a highly competitive environment.”
