Hammer falls on former L&P bottling plant

Hammer falls on former L&P bottling plant

7 Station Road, Paeroa, Waikato. Sold on 28th July 2017.

The Property
- 1,062m² freehold corner site in the northern Waikato town of Paeroa
- 900m² high stud warehouse purpose-built as the bottling factory for L&P soft drink – extended over the years
- Most recently used as a mechanical workshop and second-hand shop
- Sold with vacant possession
- Commercial zoning
- Rateable Value - $180,000
Quick Look
• National Total Property marketing campaign with auction method of sale
• Property marketing generated 20 enquiries – mainly from upper North Island investors
• One active bidder on auction day
• SOLD under the hammer to an Auckland-based investor for $420,000

The Story

Paeroa is world-famous for Lemon & Paeroa — or L&P — the soft drink created in 1907 by combining the carbonated mineral water of Paeroa with lemon juice. The drink is now manufactured by multi-national Coca-Cola.

The industrial building in Station Road was used as the L&P bottling plant up until the 1980s when production moved away from Paeroa. The concrete floor still has drains which would have been required for the large quantities of water required to make the drink.

The building is currently divided in to two areas and most recently has been home to a second-hand shop in the front and a car wreckers at the rear. There are several storage and mezzanine areas, an unconsented self-contained flat on the upper level and a yard.

Josh Smith of Bayleys Waikato says the property does have a lowish NBS threshold which did put some buyers off, however, the new owner has lined up tenants for the building and it’s ready to face another chapter of its life.

“There’s still plenty happening in Paeroa and, judging by the enquiry we received on this property, investors are looking to these smaller towns for commercial opportunities.”

Vendor Comment

Auction proved to be the best way for a Tauranga couple to move on with their lives

The property’s Tauranga-based vendors, Dennis and Jeanette, had owned the former bottling plant for 3 ½ years. The couple purchased it as a passive investment and it was their first foray into commercial property ownership.

“We didn’t buy it because of its history and connection to L&P – it just fitted with our circumstances at the time,” says Jeanette.

“When the tenant gave notice to vacate the property earlier this year, we decided to sell up and give someone else the opportunity to do something with the building.”

Jeanette and Dennis put the property in the hands of Waikato commercial agent Josh Smith and say it was a good move.

“We were kept informed every step of the way with great feedback,” says Jeanette.

“At all times, we really felt that Bayleys was working for us as the vendors. Even when there was only one active bidder on auction day, we were confident that we’d get a good result.

“The price achieved exceeded our expectations and just goes to show – you only need one buyer at the end of the day.”

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