The Property

• Modern industrial building constructed in 2019 within a prime industrial precinct

• 410sqm (more or less) warehouse and 310sqm (more or less) of well-appointed offices over two levels

• 1,184sqm (more or less) land with 14 on-site car parks

• Fully-leased to two tenants – Food Factory and DataSentinel

• Annual net rental $131,903.95pa + GST and outgoings

• Both lease agreements include annual CPI rent reviews, along with market reviews every three years

• Zoned Nayland Road South Industrial Area

Quick Look

• National Total Property marketing campaign – sold by Deadline Sale

• Interest generated via Bayleys’ databases, Total Property magazine, Nelson Weekly and Waimea Weekly papers, web portals and an extensive social media campaign

• Strong enquiry from local and out-of-town buyers

• SOLD for $2,400,000 at a 5.50% yield

• Purchased by a local family trust

The Story

A fully-leased near-new warehouse-and-office building in the popular Stoke industrial precinct, between Nelson’s CBD and Richmond proved popular with investors when it hit the market, said Paul Vining, Bayleys Nelson.

“Modern industrial assets like this seldom come up for sale in Nelson, so this offering was a test of the market and the result was really encouraging.

“The price achieved showed investor appetite for quality passive investment opportunities and reflected the calibre of the building, the location, the tenant covenant, and the lease structure.

“The deadline sale campaign was brought forward due to competition between prospective buyers, and ultimately the market spoke.”

Paul said with this industrial precinct bounded by the Stoke bypass and residential-zoned suburbs, room for further industrial development in the area is limited. “With the industrial sector outperforming other asset classes on long-run returns, this was a strategic purchase by the successful buyer.”

Vendor Comment

Leita McKellar, commercial manager for Coman Group, one of the largest construction firms in the upper South Island, said despite some trepidation around timing, there was clear demand for the property.

Meeting with Paul from Bayleys and talking through possibilities around the sale of 11 Findlay Place was a fruitful process for the owners, says Leita.

“There were plenty of murmurs about timing not being optimal for a sale, however Paul listened, had a genuine and open discussion – without over promising – and committed to undertake a campaign to test the market via a deadline sales campaign.

“That turned out to be a seamless process, with Paul communicating clearly to both the owners and their tenants throughout.

“The marketing campaign drew immediate interest in the property, the deadline date was brought forward as multiple offers were tabled and within a few weeks of initial discussions, the sale had been settled and the owners’ expectations met.

“Despite earlier trepidation, the market showed that there is strong demand for new, high quality commercial properties with good leases in place.”