Two substantial industrial property sales have been concluded recently by Bayleys Tauranga, one a record price for Tokoroa and the other a $16.1 million transaction in Mount Maunganui.

An extensively refurbished and expanded industrial complex at 11-17 Huttloc Drive, Tokoroa, sold to a locally-based investor for $12.75 million at a 6.47 per cent yield.

The sale price negotiated by the Bayleys Tauranga sales team of Brendon Bradley, Lynn Bradley and son Ryan Bradley is believed to be a record for a commercial and industrial property in the South Waikato town.

'This deal reflects ongoing confidence in the industrial sector and continuing demand from investors for provincial offerings providing higher yields than similar quality properties in metropolitan areas such as Auckland,” Brendon Bradley says.

The 10,660 sq m high-stud industrial premises, with an overall A-grade seismic assessment, features large warehouse areas with more than eight-metre stud heights, modern offices and amenities.

Once the Huttloc factory for timber manufacturer Carter Holt Harvey, the original premises has been extended to include new workshop space, offices and amenities. Two additional buildings erected in 2015 and 2018 provide high-quality warehousing.

The complex is positioned on a large 3.1132-hectare site adjacent State Highway 1 at the southern entrance to Tokoroa.

It has been extensively developed with rock wall front entrances, landscaped grounds and sealed/metaled and concrete yards plus onsite vehicle parking.

'This was a standout industrial property with every desirable aspect for an astute investor including a long lease to a tenant with a proven trading history and essential business categorisation during Covid 19 lockdown,” says Brendon.

One of New Zealand's largest mineral processors and distributors, Blue Pacific Minerals has a 12-year lease with three six-year rights of renewal.

The property is currently generating total net annual income of $825,000 plus GST.

Brendon says properties located around the golden triangle of Auckland, Waikato and Bay of Plenty are attracting interest from investors across the country.

The site in Tokoroa on Huttloc Drive.

'With Tokoroa on the outside fringe of the triangle but connected via State Highway One, it is well-positioned to benefit from burgeoning investment across each region, as evidenced by our team concluding 23 sales and leasing transactions in South Waikato over the last financial year. These transactions reflect a strong level of local economic activity which continues to attract investment.” he adds.

It's been a busy period for the Bradleys with another high-value transaction recorded in Mount Maunganui.

A 5,961 square-metre cold storage facility on 1.625 hectares of land in two titles at 7-13 Te Maire Street sold to an Auckland investor for $16.126 million, reflecting a 5.3 per cent yield.

The property is located in Mount Maunganui's industrial zone close to Tauranga's Port and comprises temperature-controlled storage facilities, canopy cover plus offices and amenities.

A substantial, unutilised grassed area offers future development potential.

'There was huge upside in terms of excess land allowing for expansion to the current facility,” Ryan Bradley says.

National business Cold Storage Nelson has a 10-year lease plus two of five-year rights of renewal through to July 2039, paying a current annual net rent of $854,630 plus GST.

It specialises in the temperature-controlled export sector of the logistics market.

'Seven parties including investment institutions, of which three were locally based and four out-of-town, submitted tenders for the property, illustrating the attractiveness of the strong tenant covenant and quality of the complex,” Ryan says.

'Our vendor was thrilled with the outcome, having owned the property for many years.”

Brendon says the transactions reflect strong demand for regional industrial property with long leases to well-established tenants.

'With yields on good quality industrial property in Auckland now below five per cent, investors are looking further afield for more lucrative returns and add-value opportunities,” he adds.