Recommended NZ | Guide to Money | Gimme: Competitions - Giveaways

Trophy Albany industrial with essential multinational tenant - Colliers

Contributor:
Fuseworks Media
Fuseworks Media

A trophy Albany industrial investment is for sale with a new lease to longstanding multinational tenant SATO, which plays a crucial role in New Zealand’s essential services supply chain.

The north-facing property at 30 Apollo Drive comprises a modern 3,115sq m standalone building on a 5,910sq m freehold site with 55 onsite car parks.

It is prominently located on a key arterial within the tightly held Albany Business Park, which is among the most accessible and sought-after industrial precincts of Auckland’s North Shore.

The property has been occupied since completion in 2001 by SATO New Zealand Ltd, which has more than 40 years of experience at the forefront of the data capturing, barcoding and labelling industry.

SATO has recently renewed its lease for five years, providing long-term passive income backed by the security of an essential services tenant.

Matt Prentice, Industrial Director at Colliers International North Shore, says prime industrial investments of this calibre are keenly sought in the current market.

"This is a chance to secure a real trophy asset, underpinned by a long lease to a top multinational occupier, at a time when strong tenant covenant is at the top of every investor’s wish list.

"SATO New Zealand is part of the wider SATO global enterprise, which is publicly listed in Japan and established in more than 90 countries worldwide.

"Its core business is the supply and support of labelling and data collection solutions for a diverse mix of industries including retail, manufacturing, food, healthcare, and transport and logistics.

"SATO continued to work as an essential services supplier throughout all levels of the Covid-19 lockdown, providing proven security of income.

"Along with this superb tenant covenant, astute investors will appreciate the quality and versatility of the premises.

"The building offers an A-grade seismic rating and a sought-after high warehouse to office ratio of 76 per cent.

"It also has a commanding street presence with some 57m of frontage to Apollo Drive, which is one of Albany’s most prestigious arterial roads. This sought-after location is bolstered by abundant car parking and excellent motorway access, making it highly convenient for staff and customers.

"Rarely do standalone industrial assets on Apollo Drive come to the open market - this is your chance to purchase a premium-grade, hands-free investment occupied by a longstanding essential tenant."

Colliers International has been exclusively appointed to market 30 Apollo Drive, Albany, Auckland for sale by deadline private treaty closing at 4pm on Tuesday 24 November, unless it is sold earlier.

The property currently returns $505,892 in net annual rent plus GST, with the tenant covering all operating expenses. Market rental reviews take place every three years.

SATO recently renewed its lease for a five-year term to August 2025. A further right of renewal would extend the final expiry to August 2030.

The property provides 2,324sq m of high stud warehouse space along with some 702sq m of office over two levels, a 90sq m canopy and 35sq m courtyard.

Ben Cockram, Industrial Associate Director at Colliers International, says the Albany Business Park is a relatively new but established industrial subdivision that is popular with corporate occupiers.

"Positioned on eastern side of State Highway 1, between Constellation Drive and Rosedale Road, the subdivision took shape in the late 1990s and was mainly developed between 2003 to date.

"The precinct has proven very popular due to the high standard of surrounding development, quality  working environment, access to transport links and a number of affluent suburbs close by.

"Excellent access to the Northern Motorway is available via Constellation Drive or Tawa Drive, putting the property within 15 minutes of Auckland’s CBD outside peak hours.

"The Rosedale Road Busway Station, which is due for completion in 2021, will be a short walk away. This $70 million project will allow passengers to conveniently transfer between suburban bus services on local roads, and Northern Busway services on dedicated lanes alongside the Northern Motorway.

"The new station is part of the wider $700m Northern Corridor project, which involves widening State Highway 1 in both directions, a new connection to SH18 to link the motorway with the Western Ring Route and airport, and safe new routes for bus users, pedestrians and cyclists.

"All of these upgrades make Apollo Drive a superb location to invest for the future."

All articles and comments on Voxy.co.nz have been submitted by our community of users. Please notify us if you believe an item on this site breaches our community guidelines.