Two adjoining properties in Hamilton’s heart of industry
36-40 Colombo Street and 32-36 Ellis Street, Frankton, Hamilton
- Two adjoining industrial properties in Frankton sold as one lot
- One tenant – well-established manufacturing engineers, Vertec
- 3,353sqm collective floor area
- 6,071sqm total land
- Net rental $295,765 p.a. + GST
- Easy access to main arterial routes and close to the Hamilton CBD
- Identified add-value potential
- Rare opportunity for investors to acquire an industrial property with scale
- National Total Property marketing campaign with auction sale method
- Interest mainly from add-value investors
- Three active bidders in the room on auction day
- Sold post-auction via a four party multiple offer process
- SOLD for $3.6 million
- Purchased by a Waikato-based private syndication group
- Plans are being finalised to streamline connection between the two buildings
It’s not often that an industrial opportunity with scale comes up in Frankton, Hamilton’s preferred industrial precinct.
Jordan Metcalfe and Rebecca Bruce of Bayleys Waikato sensed that the properties – sold as one lot –would be popular among industrial investors and although the hammer didn’t fall on auction day, conditional interest and a multi-offer process saw it sell soon afterwards.
“An auction campaign has several stages and not all properties sell under the hammer,” says Metcalfe.
“Bringing buyers together in a competitive environment is the best way to get a deal done.
With an existing short lease but a committed tenant, Metcalfe said it was clear that with input from a new owner/landlord, improvements could be made to the flow between the two buildings allowing the property to work more efficiently and effectively.
“The location is proven for the tenant and it’s great when strategies can be put in place to ensure that an industrial property can continue to work – for all parties involved.
“We believe this to be one of the largest on-market sales in Frankton for quite some time and it’s a location that is underpinning some of the Waikato’s most innovative and successful businesses.”
Bevin Coley of Coley Property Group says the purchase is a good fit for the private syndication group he represents.
The private syndication group now has over 50 investors with the purchasing entity having 41 investors, most of whom have strong connections to rural New Zealand. It owns 25 properties throughout the North Island evenly split between Waikato, Auckland and the regions.
Bevin Coley says around 85 percent of its investments are in industrial property as this is what resonates best with the farming background of the lead investors.
“We’ve increasingly become industrial property investors because we can relate to big and simple ‘sheds”,” he explains.
Coley says he first looked at this Frankton property around 12 months ago but at that time, he felt vendor expectations were unrealistic for the buildings that required work.
“However, one year down the track and at the purchase price of $3.6 million, it’s a more palatable deal.”
“As I said to our investors, the property had a short lease, required significant work and there was deferred maintenance that needed to be addressed in order to better serve and retain the tenant.”
Coley says they will be spending “plenty of money” and are liaising with the tenant on a strategy that will see the buildings work more efficiently by interconnecting the two structures.
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