The property also offers future expansion potential, with 4653sq m of land available for development.
The property at 114-152 Swanson Rd, in the Westend Industrial Park, is tenanted to Webstar, Caprice NZ and Sharp Serviettes and offers a long-term lease profile, with the leases of the major tenants having built-in income growth linked to the consumer price index.
KCL Investments, comprising a merged Taranaki-based KCL and Timaru-based Commercial Investment Properties, hopes to follow in the steps of other successful proportionate ownership schemes undertaken by Colliers International.
These include the Countdown supermarket in Tokoroa, the Unitec North Shore Campus property in Albany and a large property leased to Good Health Products and other tenants, also in Albany.
"All were fully subscribed well in advance of the closing date," Lichtenstein says.
Cheryl Macaulay of KCL says the syndication presents an opportunity for individual investors to buy a share of a quality commercial asset occupied by solid tenants on long leases.
"It provides the potential for long-term income security for investors and income growth through rent reviews," she says.
Tenant Webstar occupies 12,892 sq m of high and medium-stud warehousing with about 510sq m of new office space on a 12-year term.
"The company was established in 1997 and has since grown to become the country's premier web printing business," Lichtenstein says.
"Webstar has a long-term printing contract with ACP Media.
"ACP is New Zealand's leading publisher of several well-known magazines including Woman's Day, Australian Woman's Weekly and North & South, which underpins the company's strength as a tenant."
Caprice occupies a newly built 4000sq m high-stud warehouse and 76sq m of offices on a 12-year lease with expansion rights to the land at the rear of the building. "Caprice is a home furnishings distributor to retailers around New Zealand, and supplies products, including bed linen, blinds and fabrics, to chain outlets nationwide including Briscoes, Farmers and The Warehouse."
The third tenant, Sharp Serviettes, occupies 340sq m of newly refurbished offices and 3830sq m of medium-stud warehouse on a new six-year lease with the right to renew for a further six-year term.
Sharp is a major serviette and paper napkin supplier to the New Zealand hospitality sector and to homeware and supermarket outlets.
Oscroft says two remaining vacant warehouse areas are leased by Westend Property Partnership for a three-year term, while refurbishment and re-leasing is completed.
"Negotiations are under way with new tenants for these spaces, which total just over 4000 sq m."
He says the site offers excellent transport accessibility, with extensive frontage on to Swanson Rd and four separate access points.
"Large turning and truck manoeuvrability will be further improved by a road around the perimeter of the site to be completed next year."
