East Tamaki acquisition strengthens Direct Property portfolio
Direct Property Fund has announced the acquisition of 92-98 Harris Road in East Tamaki, a key industrial property in South Auckland and local home to leading Australian food manufacturer Goodman Fielder.
The $12.95M purchase, which settles on 4th February, sees the reintroduction of the property into the DPF portfolio after it was sold in September of 2009 to facilitate the acquisition of another East Tamaki site – the Fisher & Paykel Appliances asset.
DPF General Manager Simon Woodhams says the reacquisition further signals the company’s commitment to strategic investment in highly sought after industrial zones.
“East Tamaki has traditionally been home to much of Auckland’s industrial and manufacturing operations, and with recent investment in major business parks and civil projects, the area has become the most well connected and high profile industrial hub in the city,” says Woodhams.
The Harris Road property has considerable potential due to its regular, flat shape and good frontage onto one of East Tamaki’s main roads. The site itself comprises 2.6 hectares and houses Goodman Fielder’s New Zealand operations including medium stud warehouses, refineries and silos, office blocks, a workshop and some 6,500m2 of as yet undeveloped land.
Goodman Fielder will remain tenants on the property with eight years left on its 12 year lease and two five-year rights of renewal included in the terms of purchase.
“2011 was a year of consolidation for Direct Property, with a strategic focus on maintaining occupancy, improving the portfolio and reviewing selective acquisitions and sales,” says Woodhams.
“The focus for 2012 will be to maximise the potential of our properties and ensure the quality of our portfolio remains a top priority. The acquisition of Harris Road, with tenant Goodman Fielder contracted until at least 2020, further demonstrates our commitment to that task,” he says.