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The last distribution centre owned by Fisher & Paykel Appliances has been put on the market and is expected to fetch upwards of $9 million.
Serving mainly as a northern regional distribution centre for the whiteware manufacturing company, the 9985 sq m warehouse is situated on a 1.4 hectare site at 80 Springs Road, East Tamaki.
At any one time there are 30,000 whiteware appliances stacked five high in the warehouse, says Brett Butterworth, vice-president, corporate planning, for Fisher & Paykel Appliances. While the building is mainly used as a finished goods distribution centre for the North Island, it is sometimes used as a marshalling point for exports and containers sent to the South Island.
The property is being marketed by Colliers International brokers Andrew Hooper and Greg Goldfinch.
"Fisher & Paykel Appliances will lease back the premises for five years, with two years guaranteed," Hooper says. "After that a three-monthly break clause will apply."
Hooper says the rent payable by Fisher & Paykel Appliances is negotiable as part of the overall sale.
The company has two distribution centres in New Zealand, 10 in Australia, eight in North America and one each in Singapore and Britain.
"These properties are all leased and the sale and leaseback of the Springs Rd warehouse aligns the company's property strategy internationally," says Butterworth.
The distribution centre was built in the early 1970s for Van Leer, a plastic bag manufacturing company, and was bought by Fisher & Paykel Industries in 1995. Although it forms part of Fisher & Paykel Appliances' large integrated East Tamaki manufacturing site, the property is on a separate title.
It is located on the western side of Springs Rd between the intersections of Allens Rd to the north and Kerwyn Avenue to the south in an established industrial location.
"The area is continuing to grow as infrastructure development provides scope for more land subdivision and design build premises," says Hooper.
"An owner-occupier who wants to locate to East Tamaki in the future or an investor who sees value in the leaseback offered by Fisher & Paykel Appliances will be interested in the property. It is already attracting a lot of attention."
The rectangular warehouse has reinforced concrete foundations and mostly precast concrete panel exterior walls. The long-run iron roof over a substantial steel frame has a stud height of 6.7 m to the underside of the portal knee rising to 8.2 m at the apex.
Goldfinch says there are several access points for large vehicles, including four, floor-level, roller doors, seven cart-dock truck bays and seven large roller doors, including two designed to give secure cart-dock container loading at the northern end of the building.
Internally, the warehouse is fully sprinklered and natural light floods in from rows of clear roof panels and glazed windows above the various roller doors. "There are also rows of large incandescent lamps," Goldfinch says.
A fully enclosed generator shed and secure cage is located at the rear of the building along with another plant shed and cage in the northwestern corner of the warehouse.
At the front of the building, the offices are partitioned into meeting and storage rooms, and an open plan work area. A small basic single-level office has been built within the warehouse. Fifteen staff work in the warehouse and eight in the office.
Goldfinch says the offices are in good condition as is the entire building. Fisher & Paykel Appliances has maintained the distribution centre to a high standard and hasn't altered the building in the 12 years it has owned it, although the offices may need upgrading and possibly reconfiguring before any reletting.
The building is surrounded by sealed roading for vehicle manoeuvring and car parking, while small areas at the front of the site are grassed and gardens have been planted along the southern boundary. Goldfinch says access to the rear of the building is over adjoining Fisher & Paykel Appliances' property and it will be fenced off when the company moves but the site can possibly be enlarged by shifting the southern boundary to provide turning areas.
The distribution centre has a Manukau City Council Business Six zone. Hooper says the existing warehouse is the highest and best use for the land, particularly as it is only a few hundred metres from Ports of Auckland's regional microport, which has been established on land leased from Fisher & Paykel Appliances - and is used by the company to distribute its products.
"The area surrounding the distribution centre is a mature part of the East Tamaki industrial zone which has grown significantly in recent years."
When Fisher & Paykel Industries moved to East Tamaki in the early 1970s, it was on to bare farm land. The company bought a large land holding and built its first refrigeration factory in 1972 for $2 million.
"There was nothing here except paddocks and Ra Ora Stud up the road, which is now Macquarie Goodman's Highbrook Business Park," says Butterworth.
"Improved transport and road access to this part of Manukau has led to a strengthening demand for industrial property," says Hooper. "The shortage of industrial property, low vacancy rates, and the increase in land and building costs has led to rising rents.
"Rents for modern purpose built premises are at $195-$210 sq m for office and $100-$110 sq m for warehouse space, while existing industrial property rents range from $85-$95 sq m for warehouse and $140-$190 sq m for office space".
Goldfinch says rents and land values are expected to climb further when the new Waiouru Peninsula motorway connection opens later this year. "It will have a significant impact on East Tamaki by forming a direct link through Highbrook Business Park.
"Further infrastructure improvements, including the State Highway 20 extension between Puhinui and Manukau will improve access to Auckland International Airport from the southern and eastern suburbs and lift land values."
