The sizeable squarish 4.32-hectare perpetual leasehold property in the heart of Onekawa includes some of the best heavy engineering workshops in Hawke’s Bay. It also encompasses several industrial warehouses and administrative offices spread across some 6,072 square metres of buildings – all adjacent to large storage yards on a flat, hardpacked surface.
The heavy engineering sheds are approximately 4,400 sqm with gantries for 10 cranes up to 35 tonne and travel 100 metres.
The Angus Place property is zoned Main Industrial under Napier City Council’s District Plan. The main industrial classification – which applies to the likes of the Napier suburbs of Onekawa, Pandora and Awatoto – allows for a wide range of uses to be undertaken by the likes of both the industrial services and manufacturing sectors.
The main industrial zoning recognises the suburb’s proximity to Napier Port, Napier Airport, and the region’s state highway network without impacting on residential suburbs. A 21-year ground lease for the Angus Place property runs through until 2041 at a rate of $335,000 plus GST per annum reflecting land value of $155 per square metre at a lease prescribed rent rate of 5.0 percent per annum.
The tenant Eastbridge, is a longstanding heavy engineering company that specialises in bridge and other infrastructure steel componentry fabrication. Since 2018, Eastbridge has owned one of Napier’s longest-standing businesses - Napier Engineering & Contracting.
The leasehold land and buildings at 8 Angus Place are now being marketed for sale by tender through Bayleys Napier, with tenders closing on September 2.
Salesperson Kerry Geange said that with more than 20 years remaining on the current ground rental, the property’s configuration would attract both owner-occupiers, or investors looking to develop the site further.
The combined sublease contract income is $433,090 plus GST per annum, and when fully tenanted; the property has the potential to generate a rental revenue in the region of $530,000 plus GST per annum. The individual tenancies comprise:
• An engineering firm occupying some 12,400 square metres on a current lease running through to 2022 with two further two-year rights of renewal, generating annual net rental of $255,000 plus GST
• A transport operator occupying some 11,007 square metres on a new six-year lease, generating annual net rental of $102,270 plus GST
• A civil works firm occupying some 7,582 square metres on a new six-year lease, generating annual net rental of $75,820 plus GST
• Some 9,775 square metres of industrial land available to lease with the potential to add rental revenue of $97,750 plus GST.
Geange says the broad tenancy mix of the Angus Place property offers a split-risk investment whose rental revenue would underpin significant holding income while any development options were explored.
“The two recent six-year sub-leases are terminable at six-months’ notice, therefore three hectares of industrial-zoned land is available for development. This provides increased flexibility for developers and owner-occupiers alike,” he said.
The opportunity for a purchaser of the perpetual ground leasehold property includes heavy engineering buildings with vacant possession by 2026 and possibly sooner.
“Landholdings of this size and scale are rare to find in Onekawa – particularly as they have so many development or occupancy options available for a new owner,” said Geange.
“For example, there is enough undeveloped land within the block to accommodate several new warehousing or plant structures in a multitude of configurations.
“These could either replace existing tenancies as they come up in the future or operate simultaneously with the existing tenants. Potentially, an even broader tenancy mix could occupy the site. Subdivision plans have been prepared.
“At the same time, there is the potential to add to the current tenants’ premises as they expand their business activities across Hawke’s Bay from what has been their established bases for quite some time now.”
Neighbouring properties in Onekawa’s Angus Place/Austin Street locale include such industrial operations as Waste Management Napier, Sims Pacific Metals, and McMillan Refrigeration Services.