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Home/Provincia News/Provincia Weekly: 23 April 2021
Hunua Road industrial property acquisition

Provincia Weekly: 23 April 2021

An in-depth review of last month’s 80D Hunua Road industrial property acquisition by Provincia Property Fund…

80D Hunua Rd, Papakura, Auckland
80D Hunua Rd, Papakura, Auckland

80D Hunua Road is a large industrial land holding of 12,297m2 (excluding shared access way) located in Papakura’s Hunua industrial precinct, approximately 3.5 km south east of the Papakura motorway interchange.

The zoning is Light Industry across the top two-thirds (approximately) of the site, and Heavy Industry on the southern third (bottom portion of photo above).

The properties on the west (left), southern (bottom) and south-eastern sides of the site are all zoned Heavy Industry, while the property on the northern boundary is zoned Light Industry.

On the site is a newly developed office building (top right of photo above), additional portable office premises (to right of office building), truck wash bay (on left boundary), and a moveable warehouse (centre left).

The moveable warehouse will be replaced with a soon-to-be-constructed 750m2 warehouse on the northern side of the property (where the trucks are parked at the top of the photo above).

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The purchase price of $7.8 million comprises $6.8 million for the property and a capped $1 million contribution to build the new warehouse, which will be constructed by the vendor.

The site lends itself to multiple activities and, although not guaranteed, a future value-add opportunity would be to have the whole site zoned Heavy Industry. Industrial land is in short supply in Auckland, and heavy industrial even more so.

The tenant, Alderson Poultry Transport Ltd, is a very well-established logistics company with a 33-year history and 20 years of specialising in poultry transport. In addition to poultry transport, they offer a total logistics service that includes a poultry catching service, equipment leasing and rental, labour hire and consultancy services.

Alderson employs over 100 staff across the country and operates a fleet of over 100 vehicles, including trucks, trailers, forklifts, service vehicles and specialist equipment. This gives them the ability to service New Zealand’s poultry industry, from day-old chicks to end of lays. Next time you eat chicken, it’s highly likely it was caught and transported by Alderson.

Of the three categories of commercial property – retail (including hospitality), office, and industrial – industrial property stands out as the safest and most defensive category. Alderson’s business is a good example of this, being classed as an Essential Service which adds to the security of the investment during Covid-related lockdowns. During economic downturns, shops may close down and offices may cut back, but factories and warehouses just keep running… as seen during the Covid-19 pandemic.

During due diligence the Manager negotiated a 10-year triple-net lease and rolling 12-month bank guarantee with Alderson, resulting in a very secure investment for Provincia. Other factors that contribute towards this acquisition being a good fit with Provincia’s investment criteria are the large amount of undeveloped land and built-in 2% p.a. rental increase with market rent reviews every three years.

Additionally, land zoned ‘Heavy Industry’ is in short supply and therefore high demand, giving us peace of mind that it could be re-tenanted at any time or developed to suit a new tenant.

Provincia invests in quality industrial properties located in growth areas that have sound economics. Our focus is on the ‘golden triangle’ of Auckland/Hamilton/Tauranga. 80D Hunua Road is located within an industrial precinct of Auckland that Provincia previously had no exposure to, so the acquisition has added geographical diversity to the fund’s portfolio.

Scroll down for additional photos…

Provincia Property Fund - industrial property fund

If you’re looking for somewhere secure to park your money and earn 6% p.a. pre-tax PLUS capital gains, find out why Provincia industrial property fund is rated so highly by investors…

  • Visit our Home page for a quick overview here »
  • Our ‘story’ reveals why we are such an investor-centric fund »
  • Find out why people invest in Provincia here »
  • Check out our industrial property portfolio here »
  • Or visit our investor centre here »

Scroll down further for the photos…

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Additional photos…

Aerial view of 80D Hunua Road and surrounding area
Aerial view of 80D Hunua Road and surrounding area.
80D Hunua Road aerial view with boundaries indicated
80D Hunua Road with boundaries indicated.
80D Hunua Road aerial view
80D Hunua Road aerial view.
Hunua Road industrial property acquisition
Aerial view of 80D Hunua Road.
80D Hunua Road aerial view of office block
80D Hunua Road aerial view of office block.
Alderson Poultry Transport offices
Alderson Poultry Transport offices.
Office interior
Office interior.
Boardroom
Boardroom.
Office doors in Alderson Poultry Transport offices
Office doors in Alderson Poultry Transport offices.
Close-up of Health & Safety office door
Close-up of Health & Safety office door.
Close-up of Livestock Catching Manager office door
Close-up of Livestock Catching Manager office door.
Alderson Poultry Transport sign
Alderson Poultry Transport sign.
Forklift inside Alderson workshop
Forklift inside Alderson workshop.
Alderson cage forklift
Alderson cage forklift.
Alderson Poultry Transport truck in wash bay
Alderson Poultry Transport truck in wash bay.
Alderson Poultry Transport truck in wash bay
Alderson Poultry Transport truck in wash bay.
A line up of Alderson Poultry Transport trucks
A lineup of Alderson Poultry Transport trucks.
Perspective view between two trucks
Perspective view between two trucks.
DISCLAIMER

This content is provided for general information only and should not be relied upon or used as a basis for making any investment or financial decision. To the extent that any information or recommendations in this content constitute financial advice, they do not take into account any person’s particular financial situation or goals. As individual circumstances differ, we strongly recommend you seek independent legal and/or financial advice prior to acting in relation to any of the matters discussed herein. Neither Provincia Property Fund Ltd nor Provincia Property Management Ltd nor Provincia Property Fund Management Ltd nor any person involved in this content accepts any liability for any loss or damage whatsoever may directly or indirectly result from any advice, opinion, information, representation or omission, whether negligent or otherwise, contained in this content.

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Provincia
Published on:
23 April 2021
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Categories: Provincia NewsTags: 80D Hunua Road, Alderson Poultry Transport

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