Stride Property Ltd said on Friday its East Tamaki redevelopment project with Waste Management NZ Ltd (Waste Management) had gone unconditional after resource consent was granted & Overseas Investment Office approval received.
The project involves redeveloping Stride’s 5.2ha industrial site at 11 Springs Rd, East Tamaki, previously leased to Lion Brewery Ltd as a bottling facility. That lease expired last September.
Stride will demolish existing site structures to make way for a purpose-built 8285m² industrial facility occupying the entire site.
It will provide comprehensive logistics & operational facilities for Waste Management to service the Auckland market & oversee its national operations.
Stride said when it announced the proposed deal in November it expected to complete the redevelopment in the September 2019 quarter. On completion, Waste Management will commit to an initial 25-year lease, delivering initial net rental of $3.89 million/year & structured rental growth.
The development is forecast to cost $43 million, and the agreement allows for the expansion of the scope of works by up to $23 million, with an associated increase in rental.
Attribution: Stride release.