Hammer falls on large industrial property in Marlborough
377 Vickerman Street, Grovetown, Marlborough
- Freehold land and buildings on 1.435ha of rural-zoned land, 4km northeast of Blenheim CBD
- Fully-tenanted across three businesses with new leases and WALT of 5.1%
- Total floor area of 3,512sqm
- Room to further develop the site
- Well-maintained property – currently with food processing and light engineering uses
- annual rental return of $138,347 + GST
- CV: $990,000
- National Total Property feature property marketing campaign with auction sale method
- Strong interest from local and national investors and a potential buyer from Western Australian
- SOLD at auction for $1,510,000 at a 9.1% yield
- Purchased by local Marlborough investors diversifying out of the residential property market
Pete Coldwell and Kurt Lindsay of Bayleys Marlborough say they were rapt to see the broad range of buyers that came out of the woodwork for this strategically-located property – proving the reach and effectiveness of a well-positioned Total Property marketing campaign.
“Our phones were ringing with investors from our local catchment area, elsewhere in the South Island and plenty of interest out of Auckland,” says Pete.
“We even had an enquiry and subsequent on-site viewing from an investor in Western Australia.
“There is an identified shortage of quality industrial stock coming to the market in Marlborough and the appeal of this property was largely based around yield.”
With Auckland industrial stock sitting mainly in the sub-6% yield band, the Marlborough offering at more than 9% yield hit the right note with investors.
“The new leases we negotiated ahead of the sale gave some certainty and confidence to the market and this was backed up by a fantastic result in the auction room under the hammer.”
Vendor Pat Murphy says the atmosphere in the auction room was like game day at Eden Park.
Pat has had business connections to this property since 1981 and an ownership shareholding in the land and buildings, with others, for around 20 years.
A co-director of Marlborough Garlic – one of three businesses that operates from the site – Pat says his business is changing and in expansion mode so it was timely to release capital from the property.
“It’s exciting to think that we can progress with new initiatives in our business – remaining on-site in a property that has served us so well over the years – but without the financial ties,” explains Pat.
He says selling through Bayleys was efficient, professional, and well-worth the commission fee he paid.
“The entire team was behind us and the process every step of the way.
“Kurt and Pete worked in partnership, with Tarin behind the scenes, each focussing on their strengths and together they helped us navigate any potential hurdles.
“Pete is a stickler for detail and helped restructure the leases, while Kurt was the hustler and made sure we were on track for the sale.”
Bayleys’ national auction manager Daniel Coulson flew down from Auckland to call the auction and the whole Bayleys Marlborough team showed up in force creating what Pat describes as “an atmosphere to rival Eden Park”.
“There was adrenaline and excitement and to anyone who thinks that real estate agents are overpaid – I say this team earned every cent that we paid them.”
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