State Of The Art - Investment Property - Tauriko

Property ID 1670390

Newly constructed food grade' building in the heart of Tauriko

Site 7500m2 - freehold land

Building: Factory/warehouse 2776m2, Cold/cool store 444m2, Canopy 510m2, Office 210m2 (subject to final survey)

Tenant: New Zealand Specialty Kiwifruit Products Limited

Rental guarantees in place from Tenant's Bank

Current Rent: Approximately $646,707 net rental including amortised works (+ GST per annum, plus 100% outgoings + GST) (subject to final survey) spread over the first term (of 15 years). Rent reviews are set to CPI on an annual basis (on the base rental).

15 year lease commencing 14th June 2017 (subject to Practical Completion)

Outgoings: 100% paid by Tenant

Unique opportunity to acquire a magnificent New Industrial Investment in Tauranga

For Sale by Deadline Private Treaty (Closing Wednesday 26 July 2017) unless sold prior

Contact the SOLE AGENT for further details!

Sale Details

Lot 297 Paerangi Place, Tauranga is offered for sale by Deadline Private Treaty (closing Wednesday 12th July 2017 (unless sold prior). (Please refer to the “Information” section of this Listing for an explanation of Sale by Deadline Private Treaty)

All inspections of the property by a purchaser and/or consultants are to be by prior appointment and arranged through the Ray White Commercial agent (“Marketing Agent”).

Please refer to the Information Memorandum under the “Documents” section of this listing.

MARKETING AGENT

Philip Hunt – Commercial and Industrial Specialist

M:        021 378 348  DDI:    07 928 1303
E:        philip.hunt@raywhite.com

Ray White Commercial Tauranga, New Zealand
46 Spring Street, Tauranga (P.O. Box 10387, Mount Maunganui 3152)

Introduction 

OPPORTUNITY

An opportunity exists for an investor to acquire a large industrial property in the very well located Tauriko Business Estate.

Lot 297 Paerangi Place is a 7500m²* freehold industrial site. The site is situated to the northern side of Paerangi Place, one property west of the roundabout intersection with Kennedy Road and Taurikura Drive and forms part of the new Tauriko Business Estate.

Near completion, the property comprises a large industrial development that provides a state of the art processing factory, high quality two-level office and amenities block, cool/cold store, a dry store yard and onsite carparking.

The entire property and premises is fully occupied by the Tenant – New Zealand Specialty Kiwifruit Products Ltd (“Dried Kiwi”) secured by a long-term lease of 15 years with a bank guarantee providing long-term lease security.
Further information on the Tenant and Lease are provided below.

Property Overview 

Property

The property comprises a freehold industrial site of approximately 7,500m² being near square in shape and near level in contour, with lettable building area of approximately 3,940m².

Development and Buildings

On completion, the property will comprise a large industrial development that effectively comprises two buildings that are connected by way of a drive through canopy.

Floor areas:

Factory/warehouse: 2776m²

Cool/cold store:  444m²

Canopy: 510m²

Office/amenities: 210m²

Yard: 500m²

Note:  All areas are approximate and subject to final survey.

The main building is located to the north-eastern corner of the site and will provide a food-grade factory and a two-level office and amenities block.

The smaller building is located towards the eastern boundary and will provide a cool/cold (freezer-capable) store and an adjacent yard.

A drive through canopy connecting the buildings will provide all weather access and free flow of products.  The site provides good truck access with excellent drive-around and loading capabilities.

Main Building

Factory: The factory features a lean to roof with a stud height of approx. 5.656 metres at the knee to 8.15 metres at the apex.  Two full height roller doors are located along the eastern side and provide direct access to the canopy.

Office & Amenities:  A two-level office and amenities block is situated to the south-eastern corner of the main building and is configured to provide reception, meeting room, lunch room and ablutions to the ground floor and open plan office, a partitioned office and meeting room to the first floor.

Canopy

Situated between the main building and the cool/cold store is a large canopy with a gently sloping roof profile and drive though access.

Cool/Cold Store

The cool/cold store features a structural steel frame with a 5-metre stud (to the portal knee) and the facilities have direct access to the canopy.

Other improvements included in the overall development will be some boundary fencing, asphalt driveway and approximately 42 car parks within the property.

A full copy of the drawings is available on request.

The property is located near other quality industrial developments, including a large high-profile kiwifruit pack house to be built in the near future.  Next to the property there is a planned convenience centre which is scheduled to commence construction in 2017.

FURTHER INFORMATION ON BUILDINGS AND FACTORY

One of the key features this factory offers is a cool/cold store which has freezer capability, enabling freezing and storage of processed product as required. The factory will be a high-quality processing facility using state of the art equipment including a specialty automated bottling plant and IQF Tunnel (for “Individually Quick Frozen” products).

The factory has been prepared as a food production area. Floors and walls have been sealed to required “food grade” standards and channel drains have been installed.  Two controlled access ways between the factory and the rest of the building are provided.   Other features include rapid roller doors and trade-waste plant.

The non-factory aspect of the premises is two levels comprising well-presented quality meeting rooms, staffroom, bathrooms including a wheelchair shower. One significant and stand-out feature of this high-quality building is the green and gold coloured glass on the exterior of the building, demonstrating the strong connection with the green and gold kiwifruit industry.

The site has excellent truck access and has a central location within the hub of the Tauranga/Bay of Plenty’s kiwifruit production areas (Tauranga, Te Puke, Katikati & Opotiki) with convenient access to main arterial routes.  The factory also has fast, convenient access to the Port of Tauranga’s Sulphur Point Container Port (only approximately 12kms away from the site).

The property is located near other quality industrial developments, including a large high-profile kiwifruit pack house to be built in the near future.  Next to the property there is a planned convenience centre which is scheduled to commence construction in 2017.

The Factory will be an MPI (Ministry of Primary Industries)-approved transitional facility enabling them to receive containers directly from the Port.

THE TENANT

The building, factory and site is fully occupied by the Tenant – New Zealand Specialty Kiwifruit Products Ltd (“Dried Kiwi”) for which there is a bank-guaranteed Deed of Lease of 15 years with one right of renewal of 9 years.  The Tenant has installed a state of the art processing factory (some details of which are provided in the Information Memorandum).

Dried Kiwi is primarily a processing and logistics company.  While they will be focussing on producing kiwifruit products, the factory has capabilities for processing many different raw materials including other fruit.  Initially they are a specialty juice manufacturer using green and gold kiwifruit for juice and IQF (Individually Quick Frozen) products.  There are many other potential product opportunities for the company to introduce at later stages.  By utilising NZ kiwifruit reject product means this is an innovative and environmentally sound use of excess product that may otherwise be used as stock food or be unusable.  Dried Kiwi currently have a labour force of approximately two dozen staff including casuals and 5-6 permanent staff.  Once they have begun production, they are likely to operate 6 days per week, 22 hours per day.

 THE LEASE

New Zealand Specialty Kiwifruit Products Limited (NZ Registered Company No. 6046208) hold a lease over the premises for a term of 15 years commencing 14 June 2017 (subject to practical completion), together with one renewal option of nine years.  The Lease will be struck on a net basis at approximately $646,707.00 including amortised works (+ GST per annum, plus 100% outgoings + GST) (subject to final survey) spread over the first term (of 15 years).  Rent reviews are set to CPI on an annual basis (on the base rental).  Please refer to the Tenancy Schedule below.

The registered Proprietor and developer of the Property is TYBI Tauriko Limited.

The Tenancy Schedule is provided in the Information Memorandum (please refer to the “Documents” section of this listing) and copy of Agreement to Lease can be made available on request.  A Deed of Lease can be provided on request by registered expressions of interest.  We are anticipating availability of the Deed of Lease in week beginning 12 June 2017.

 

LOCATION

This property is located in the new Tauriko Business Estate, being a desirable alternative to the Mount Maunganui industrial area.

Tauriko Business Estate has experienced unprecedented growth over the last two years, to the extent that titled land, especially of this size is rarely available.

Lot 297 Paerangi Place is located in the heart of the very popular Tauriko Industrial/Business Estate.

The Tauriko Industrial Estate is a convenient location due to the close proximity to the Port of Tauranga Container Port (Sulphur Point, via Takitimu Drive, approx.12kms), Tauranga’s CBD (approx. 9kms), Rotorua (approx. 55kms) and Hamilton (approx. 97kms).

The Property is located next door to the planned Convenience Centre (food, convenience store, childcare, hairdresser – final details to be confirmed) which is scheduled to commence construction in 2017.

Paerangi Place runs into Kennedy Road which will have direct access to Takitimu Drive (motorway) and to the Lakes and Pyes Pa Residential subdivisions.  Kennedy Road is expected to be a major “entry and exit” into the southern end of Tauriko Business Estate.

* Approximately (subject to final survey)

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Annexure A - Site Plan/Office Plan

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Certificates of Title & Description

Certificates of Incorporation

Information Memorandum

Agreement to Lease

Summary of Bank Guarantee

Property Management Proposal

Confidentiality Agreement

Warranties (Form Construction)

Interview with Director (Tenant: Dried Kiwi)

Articles

Update 22 June 2017

Important:

Prospective purchasers conduct due diligence investigations of the property strictly at their own expense and risk, and the Vendor will have no liability in relation to such expenses. Consent by the Vendor to the conduct by any potential purchaser of due diligence activities or investigation will not in any circumstance be construed as a representation that the Vendor will be exercising, or refraining from exercising its rights to deal with the property, or any representation that the vendor intends to contract with that potential buyer, or at all.

The information and figures contained in this report have been provided to us by the following sources: TYBI Tauriko Limited (Vendor), New Zealand Specialty Kiwifruit Products Limited (Tenant) and Veros Property Partners: http://www.veros.co.nz/ (Vendor’s property managers). The Parties (as defined in the Disclaimer) have not independently checked any of the information. The Parties make no comment on and give no warranty as to the accuracy of the information contained in this report which does not constitute all or any part of any offer or contract. Prospective purchasers must rely on their own enquiries.

Please refer to the full Disclaimer below.

Sale by Deadline Private Treaty: When a property is sold by deadline sale, it is marketed for a set period with an advertised end date. The vendor is not obliged to accept any offers and can choose to accept an offer at any point during the listing period. The marketing should make this clear for interested buyers by stating this, eg, ‘unless sold prior.’ As with a tender process, deadline sales do not require a property to have an advertised price. (Ref:  NZ Real Estate Agents Authority: http://www.reaa.govt.nz/ForBuyersAndSellers/Differentmethodsofbuyingandsellingproperty/Buyingorsellingbydeadlinesale/Pages/Buying-or-selling-by-deadline-sale.aspx

Disclaimer

Subject to the provisions of the Consumer Guarantees Act 1993 and subject to any other non-excludable statutory provisions, Philip Hunt (Ray White Commercial Tauranga), “the Agent” gives notice that:

  • all information given in relation to this property whether contained in this document or given orally, is given without responsibility;
  • intending purchasers should satisfy themselves as to the truth or accuracy of all information given by their own inspections, searches, inquiries, advices or as is otherwise necessary;
  • no person in the employment of Ray White and its associated businesses has any authority to make or give any representation or warranty whatever in relation to property advertised.
  • This material has been sourced from third parties and passed on by the Agent, for general information purposes but no warranty of accuracy is made.

Assume visual images enclosed (e.g. plans, photography, specifications, artist impressions, brochures) are strictly indicative-conceptual only (any statements to the contrary endorsed on such material are attributable to the author, not us).

Appearance or layout of anything depicted may alter at any time without reference to us.  All visual material and designs are subject to change at any time.  Any measurement noted is taken to be indicative and not to scale.  All outlines on photographs are indicative only.   Price lists are not offers to sell / lease / hold properties, or fix an asking price – they are last known asking prices only and are subject to change without notice.  Any price mentioned in the advertisements does not take into account any applicable Goods and Services Tax (“GST”).

Prospective purchasers are strongly advised to make their own enquiries as to whether any listing price is inclusive or exclusive of GST.  We are not valuers and make no comment as to value.  “Sold / leased” designations show only that stock is “currently not available” – not that the property is contracted / settled.  Any information supplied may have changed since we received it and we take no responsibility for that.  No reliance should be placed on any answer or volunteered information in a call with our staff.

Statements of any kind will not be deemed authorised unless in writing signed by one of our directors.  This document (including attachments) is only intended for its addressee/s and may contain privileged or confidential information.  Unauthorised use, copying or distribution of this document or any part of its contents, is prohibited.  The Agent recommends each party undertake their own searches and investigations to determine the accuracy of the above information.

The information contained in this Information Memorandum and any other verbal or written information given in respect of the property (“Information”) is provided to you (the “Recipient”) on the following conditions:

  1. No assurance, representation, warranty or guarantee (express or implied) is given by Ray White or any of their respective officers, employees or consultants (collectively referred to as the “Parties”) or any other person or entity, that the Information, whether or not in writing, is complete, accurate or balanced, or has or will be audited or independently verified, or that reasonable care has been or will be taken in compiling, preparing and furnishing the Information.
  2. The Information does not constitute, and should not be considered as, a recommendation in relation to the purchase of the property or a solicitation or offer to sell the property or a contract of sale for the property.
  3. The Information should not be relied upon in any way by the Recipient or its related entities, their respective officers, employees, agents, advisors, shareholders and associates (collectively the “Recipient Parties”). Each Recipient should satisfy themselves as to the accuracy and completeness of the Information through inspections, surveys, enquiries, and searches by their own independent consultants, and should seek independent legal and financial advice.
  4. The Information does not and will not form part of any contract of sale for the property. If an interested party makes an offer or signs a contract for the property, the only information, representations and warranties upon which the Recipient Parties will be entitled to rely will be as expressly set out in such a contract.
  5. Interested parties will be responsible for meeting their own costs of participating in the sale process for the property. The Parties shall not be liable to compensate any intending purchasers for any costs or expenses incurred in reviewing, investigating or analysing any Information.
  6. None of the Parties are liable to compensate or reimburse the Recipient Parties for any liabilities, costs or expenses incurred in connection with the sale of the property. Furthermore, the Agent, shall not incur any personal liability to any of the Recipient Parties or purchaser on any basis.
  7. Except as may be expressly provided in any agreement in writing between the Parties and the Recipient, the Recipient acknowledges and agrees (for itself and the other Recipient Parties) that to the maximum extent permitted by law, each of the Parties disclaim all liability for any loss or damage (whether foreseeable or not) suffered by any person acting on any of the Information whether the loss or damage arises in connection with any negligence, default or lack of care on the part of the Parties, any misrepresentation or any other cause by reason of or in connection with the provision of the information or by the purported reliance thereon by any of the Recipient Parties.
  8. No person is authorised to give information other than the Information in this Information Memorandum or in another brochure or document authorised by the Agent. Any statement or representation by an officer, agent, supplier, customer, relative or employee of the vendor will not be binding on the vendor or on the Agent.

To the extent that any of the above paragraphs may be construed as being a contravention of any law of the State or the Commonwealth, such paragraphs should be read down, severed or both as the case may require and the remaining paragraphs shall continue to have full force and effect.

The Information contained in this Information Memorandum is provided to the Recipient on a strictly confidential basis.  In particular, the Recipient may not discuss the Information or the proposed sale of the property with the vendors or with any agent, friend, associate or relative of the vendor or any other person connected with the vendor without the prior written consent of the Agent.

The Information must not be reproduced, transmitted or otherwise made available to any other person without the prior written consent of the Agent.

 

Additional Information on Tauranga, Tauriko, Business Growth and the Kiwifruit Industry.

Information

Source

 TCC Vision and Strategic Planhttps://www.tauranga.govt.nz/our-council/the-organisation/our-vision-and-values.aspx

https://www.tauranga.govt.nz/documents-reports/councils-regulatory-documents/tauranga-city-plan.aspx

 Tauranga Business Growthhttp://www.priorityone.co.nz/
 Kiwifruithttp://www.zespri.com   https://www.apata.co.nz/

Philip Hunt

philip.hunt@raywhite.com

+64 21 378 348

Commercial Salesperson of the Year for  2016 & 2017

Ray White Elite Club Member 2016
Commercial and Industrial Specialist
Business Director

Philip moved to Tauranga more than two decades ago from home town Palmerston North where he owned and operated garden centres for 17 years. Philip specialty and passion is Tauranga CBD office and retail market, as well as industrial building and commercial land in the wider BOP area. He was well known as the inaugural Tauranga “Main Street” manager for 6 years.

Philip then spent 6 years at Property Managers Limited as their Senior Commercial and Industrial Property Manager before moving to its sister company McMahon Commercial (now Ray White Commercial Tauranga).

Utilizing his contacts and expertise established as a Commercial and Industrial Property Manager, Philip remains enthusiastic about solving his client’s accommodation needs, whether it be leasing premises, investing or owning. Philip had a successful five years as a leasing and sales agent for McMahon Commercial in a very trying Tauranga market between 2008 and 2013 (before McMahon Commercial became Ray White Commercial).

Then as the market climbs, so does his team. Now as team leader of four, Philip has led the Tauranga Team to a whole new level. As a result, in the most recent Ray White National Conference held in March 2016, Auckland, Philip has been awarded the Ray White Elite Club Member and New Zealand Commercial Salesperson of the Year 2016.

Recently at the Ray White National Conference Philip was awarded the Commercial Salesperson of the year for 2017.

In December 2016 Philip became a major shareholder of Ray White Commercial Tauranga. So when you deal with Philip you are working with an owner of Ray White Commercial Tauranga.

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LOT 297 Paerangi Place Tauriko BYPLTY 3110 NZ
-37.751544 176.094284