Property for Industry Ltd settled its $16 million purchase of an industrial property at 306 Neilson St in Onehunga on Friday.
This property comprises a 5490m² warehouse and 812m² of office & amenities on a 9781m² site. It’s leased for 10 years on a triple-net basis to Trade Depot Ltd, a specialist in home improvement products. The lease provides fixed rental growth of 2.25%/year.
PFI bought it in a sale-&-leaseback transaction. Mr Woodhams said the $16 million net purchase price represented a 5.5% yield on purchase.
The property (outlined in picture) was put on the market a month ago in Colliers’ latest portfolio offering.
The ING Property Trust (forerunner to what is now Argosy Property Ltd) sold the Onehunga property in 2007 in a swap-&-leaseback arrangement involving 5 properties – this one and 2 others it sold, and 2 it bought.
5 June 2007: ING trust does swap & leaseback to buy at Albany & East Tamaki
Attribution: Company release, Colliers image.