KEY POINTS:
- Bell Tea, which claims to be New Zealand's most popular tea brand, is signed to a 12-year-lease at 305 East Tamaki Rd.
An East Tamaki industrial property on a long lease to one of New Zealand's beloved brands is billed by agents as, "every investor's cup of tea".
Founded in 1898, the Bell Tea and Coffee Company endured two World Wars and the Great Depression while bringing Kiwis their well-earned brews.
Bell's market-leading position provides exceptional tenant covenant for the Auckland warehouse facility it leases at 305 East Tamaki Rd.
The property is now up for auction at Colliers International's Highbrook office — at 11am on November 14 — unless sold earlier.
Colliers industrial director Paul Jarvie, who is marketing the property with colleagues Andrew Hooper and Hamish West, says savvy investors will see a good investment brewing.
"In the popular East Tamaki industrial area, it is a landmark thanks to the tenant's famous bell-shaped logo, which graces a highly visible tower.
"The property comprises a 3992sq m warehouse and office facility on a prominent 6052sq m freehold site with an extensive 67m of road frontage.
"Bell is signed to a 12-year lease with seven years remaining and multiple rights of renewal. The lease returns $421,402 plus GST in net annual rent, with yearly CPI rent reviews. With its outstanding tenant covenant, built-in rental growth and excellent location just minutes to Highbrook, this property is sure to be every investor's cup of tea."
Hooper says the property was built in the 1960s and upgraded and expanded in the 1970s and 2007.
"It provides a mix of medium to high stud warehousing, mezzanine storage and office and amenity space. With only 387sq m devoted to office and amenities, the facility offers a highly desirable ratio of warehousing.
"The remainder of the site is mostlyasphalt, providing on-site car parking and full drive-around access from two road access points."
Hooper says the location has excellent proximity to the Southern Motorway via both the East Tamaki and Manukau interchanges. "Easy access to nearby industrial areas such as Wiri, Auckland Airport and Mt Wellington make this location extremely desirable."
The Bell Tea and Coffee Company commenced its lease on October 1 2013. Three rights of renewal of four years each extend the final expiry date to 30 September 2037.
West says Bell is a New Zealand institution with enduring cultural relevance.
"Bell clains to be New Zealand's oldest and most well-known tea brand. The company was founded by Norman Harper Bell, a talented tea blender and an astute businessman. In World War I, Bell's one-pound tea tins became popular for sending comfort parcels to troops on the front, as they were ideally proportioned to receive special postal concessions.
"Bell launched its first television ad in 1966, a surprising three years before the first tea bags were introduced to New Zealand. Television ads in the 80s featured equestrian Mark Todd."
Bell and its associated brands now offer a wide range of teas, herbal infusions, coffee and coffee equipment. The company has acquired tea and coffee businesses, including Jed's, Hummingbird and Gravity. It is also the licensed NZ distributor of Twinings teas. The Bell Tea and Coffee Company briefly rebranded as BrewGroup, before being bought last year for more than $100m, by Netherlands-based beverage giant Jacobs Douwe Egberts.
