Wattie’s National Distribution Centre Syndication Fully Subscribed
We are pleased to announce that the Wattie’s Distribution Centre is fully subscribed prior to closure date on the 8th November, 2019. This sold down quickly following launch on the 9th September, 2019. There has been a level of over subscription for the syndication, with investors interested in future Erskine + Owen projects.
A summary of the offer follows;
Details of the offer – Offering a projected pre-tax cash return of 8.0% per annum, the syndication offered units available for purchase by wholesale investors at $100,000 per unit.
Details of the property – The syndication is for the site of the Wattie’s National Distribution Centre at 113 Elwood Road in Hastings, which supplies over 1,200 Wattie’s product lines throughout New Zealand and Australia. The A+ seismic rated property sits on a 6.3-hectare site and has a gross floor area of 48,500sqm. 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.
Strength of the tenants – The principal tenant, Heinz Wattie’s has a lease in place for 7.5 years until 30 April 2027, providing an annual rent of $2,218,719. Heinz Wattie’s is owned by Kraft Heinz Inc, the 5th largest food and beverage company in the world. The property’s second tenant, Tomoana Warehousing Limited, leases a smaller building for an annual rent of $60,000. Rent is subject to a CPI review every two years, from 1 May 2020.
Opportunities 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 $234 million to build a new wharf. Consumer confidence in the region’s economy is strong, with unemployment at a decade-low 4.1%, and tourism spending in the Bay also up.
Erskine + Owen – Established over 12 years ago, Erskine + Owen is a growing property business that has expanded over the past two years into the commercial property syndication sector, completing eight property syndications. Erskine + Owen also includes a property management entity called Point Property and Portfolio Management Limited. This business operates in Auckland, Hamilton and Queenstown and has over 1,000 properties under management.
This latest syndication offer follows the successful closure of the company’s syndication of 43 Maclaggan Street in Dunedin on 30 July 2019. All units were taken up within two weeks, well ahead of the original close date of 26 August.
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