The property at 113 Elwood Rd sits on a 6.3ha and has a gross floor area of 48,500sq m. With an A+ seismic rating, the warehouse meets 100 per cent of the New Building Standard.
It is also immediately adjacent to Heinz Wattie's processing plant and features a rail siding that provides direct access to Napier Port, which continues to reap the benefits of investment and growth.
Fully tenanted, the property has a lease in place for 7.5 years, providing an annual rent from principal tenant Heinz Wattie's of $2,218,719, says Toby Hunn of Erskine + Owen.
"Rent is subject to a CPI increase every two years from May 1 2020. Heinz Wattie's is owned by Kraft Heinz Inc, the fifth largest food and beverage company in the world."
Hunn says that the new offer combines an iconic New Zealand brand on a 7.5 year lease in an A+ seismic-rated property that is core to Wattie's distribution strategy, located in a strong and growing region of the country.
"It also offers a great opportunity to invest in the future of the Hawkes Bay as a major agriculture and food processing hub.
"In August this year a successful IPO for Napier Port, the country's fourth largest, raised $234m to build a new wharf.
"Consumer confidence in the region's economy is strong, with unemployment at a decade-low 4.1 pre cent, and tourism spending also up.
"The offer has been fully underwritten, and after the enthusiastic uptake of our last syndication offer, and the number of investors who missed out on it, we are already fielding considerable interest from wholesale investors with units for purchase at $100,000 per unit."
He adds that Erskine + Owen was established over 12 years ago and has grown to become a successful property business.
"Founded by Lisa Phillips and Alan Henderson originally to assist buyers in securing property throughout New Zealand, a service it still performs today, Erskine + Owen has expanded over the past two years into the commercial property syndication sector," said Hunn.
"Erskine + Owen has a fully developed syndication model and has completed property syndications totalling $25m.
"Syndication work in progress totals nearly $55m of conditional contracts.
"The company plans to build upon this successful syndication track record and grow its syndication business actively within the $5m-30m property value range.
"Erskine + Owen also includes a property management entity called Point Property and Portfolio Management Ltd.
"This business operates in Auckland, Hamilton and Queenstown and has over 1000 properties under management."
