IPG has also invested significantly in improvements, contributing substantial tenant goodwill along with $69,662 in alterations rent. This brings the total annual income to $1,005,065 plus GST and outgoings.
Colliers International's Highbrook-based Industrial team has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 30 October, unless sold prior.
Paul Jarvie, Industrial Director at Colliers, says offerings of this calibre very rarely come to the open market, especially on such a large underlying landholding in a sought-after area.
"This is a truly A-grade investment opportunity, from the outstanding location to the exceptional tenant covenant.
"IPG has been in occupation for many years and has invested substantially in improvements as it has grown into the property.
"The facility comprises three main interconnected industrial buildings with a combined net lettable area of 8,320sq m.
"Originally constructed in the 1980s and 2000s, with the Barmac facility added to the mix two years ago, the flexibly configured buildings underwent substantial tenant improvements in 2015 and 2017.
"These improvements represent a significant investment in the site from IPG and are a concrete sign of the company's commitment to staying in the property."
Jarvie says the buildings are situated on a large site, spanning two freehold titles, with three separate road entrances on Sir William Avenue, Barmac Place and Lady Ruby Drive.
"The separate titles and entrances offer the ability to split the property if needed in the future."
Greg Goldfinch, Industrial National Director at Colliers International, says IPG's lease includes locked-in annual rental growth.
"The most recent 2 per cent annual rental review took place on 1 August. There are also market rental reviews every three years, with the next review on 1 August 2021.
"The company also pays alterations rent and amortised alterations rent relating to its recent tenant improvements. These expire in 2025 and 2027."
Goldfinch says IPG was founded in Australia in 1982 and launched its New Zealand operations in 1987 in order to better serve the local market and distributors.
"The company began manufacturing locally in 1992 and now operates two manufacturing sites. Its New Zealand-wide operations employ more than 100 staff.
"The wider IPG group offers an extensive range of engineered solutions for customers around the world. The huge success
and growth of the company culminated in its 2017 merger with PPG.
"As part of the PPG family, the company continues to deliver world-class, end-to-end packaging solutions to an expanding roster of industries and global markets."
PPG is an international company with a distribution and manufacturing network throughout Australia, New Zealand and Canada.
It supplies most industry sectors and has earned a reputation as one of Asia Pacific's largest and most respected manufacturers, importers, distributors and suppliers of packaging related products and services.
Industrial Director Paul Higgins says the property is well located in sought-after East Tamaki, surrounded by modern buildings and close to the world-class Highbrook Industrial Park.
"The property is situated on the eastern side of Sir William Avenue, about 100m north of the intersection with Lady Ruby Drive, and on the western side of Barmac Place.
"This location offers excellent proximity to the Southern Motorway via both the Highbrook and East Tamaki interchanges.
"It also provides easy access to nearby industrial areas such as Wiri, Auckland Airport and Mt Wellington, along with the CBD and container terminals."
Higgins says this connectivity has attracted many of New Zealand's leading national and international brands to the East Tamaki area.
"Well-known businesses in the area include Fisher and Paykel Healthcare, DHL, Steel and Tube, Lion Nathan, OfficeMax and Panasonic."
The smaller of the two titles at 5 Sir William Avenue has a net lettable area of some 2,460sq m on a 5,835sq m landholding.
The main office fronts the road while the original 1980s warehouse adjoins to the rear.
The warehouse is clear span with a stud height of 6.5m at the apex. Behind this is a modern warehouse and adjoining canopy with a stud height of 9.1m at the apex.
The larger title at 10 Barmac Place has a net lettable area of some 5,861sq m on a 6,614sq m site.
The property comprises medium and high stud warehouses with associated warehouse offices and amenities.
Both warehouses are clear span, with respective stud heights of 7.5m and 10.6m at the apex. A large 995sq m canopy adjoins the high stud warehouse and a smaller canopy on the opposite side.
The overall property has various hardstand and asphalt sealed areas for access, storage and manoeuvrability.
It is zoned Business Light Industry, which provides for industrial activities that do not generate objectionable odour, dust or noise emissions.
