Agents marketing a versatile property at 287-289 Kahikatea Drive in Frankton, one of Hamilton’s preferred industrial precincts, say the strategic location, high-calibre occupier and sound lease with intrinsic growth mechanisms will meet the thresholds of astute investors looking to leverage the strengths of the industrial market.

The well-entrenched tenant, P & B Group, has been in business for more than 25 years and has occupied the Frankton site for some time, recognising the locational benefits of the central precinct which has streamlined access to the Thermal Explorer Highway, arterial routes north and south, and the Hamilton CBD.

Zoned Industrial, the Kahikatea Drive property is held in two titles, with a combined land area of 3,377sqm, and supports around 971sqm of buildings comprising warehousing, showroom, workshop, office and reception areas.

The property has good profile to Kahikatea Drive, on-site car parking, multiple roller door access points from the main building to the generous yard areas, and is fenced to all boundaries.

Returning annual income of $159,310 plus GST and OPEX, the existing lease commenced 10 September 2021 for an 8-year term. There are two further 5-year rights of renewals taking final expiry out to September 2039, and the lease allows for rental reviews to market every three years.

Mike Adams, Bayleys Auckland is marketing the property with colleagues Alex and Luke ten Hove, Bayleys Waikato, via a deadline private treaty campaign closing 4pm, Wednesday 13th September.

Adams says industrial property within the economic triangle formed by Auckland, Hamilton and Tauranga has continued to perform well across market cycles and with limited stock for sale, and tenant demand remaining strong, the fundamentals look good for the Franklin offering.

“Given that the golden triangle is home to around half the total population of New Zealand, generates around 50 percent of the country’s total economic activity and sees the bulk of total freight flows around the country, it’s a pivotal part of the industrial marketplace so any industrial property within that economic zone has inherent value,” says Adams.

“The subject property is owned by an Auckland-based vendor, a longstanding client of Bayleys, and represents a straightforward industrial investment opportunity with solid credentials.

“Industrial property for sale is in tight supply nationwide so we’d expect interest to come from right around the country – not solely the Waikato region.”

Alex ten Hove says P & B Group is a family-operated business and is one of the Waikato region’s leading auto electrical, mechanical and auto-air conditioning specialists.

“The company has multiple sites around Hamilton for various arms of its business, and it underpins the logistics sector which is largely reliant on trucks and heavy machinery.

“Frankton clearly works well as a base for this part of its operation, and a quick look around the immediate area shows that other high-profile businesses think similarly with the likes of Supreme Sheetmetals, Edwards & Hardy Roofing, Ag-Steel, and Admark Visual Imaging well-established in the area.”

With Frankton and Te Rapa being the two main established industrial precincts in Hamilton and both at capacity, and with limited land available for future industrial growth, ten Hove says investors will recognise the opportunity this property presents.

“The high cost of land and construction means existing industrial stock is pulling its weight in the sector, and with income being the key determinate of value in the current market, this property signals a chance to get a foot in the sector for a long-term hold.”

Click here for more information on the listing.