Following a successful capital raising, Provincia Property Fund Ltd has settled its latest industrial property acquisition at 1/30 Kerwyn Ave, East Tamaki.
Provincia Property Fund successfully completed and settled the purchase of its fifth property at 1/30 Kerwyn Ave, East Tamaki on 10 October 2019.
This brings the total value of properties owned by the fund to $30.9 million with a combined rental income of $1.9 million, and spread risk over 13 tenancies.
1/30 Kerwyn Ave, East Tamaki was acquired for $3.4 million, which thanks to astute buying was $200,000 less than its registered valuation.
The combined rental income is $210,000 p.a., providing a 6.2% net yield on purchase price.
The property contains two tenancies. Both tenants are on annual 2% rent increases with market rent reviews every 3 years.
The front unit is leased by Super Snack Ltd, a manufacturer of frozen meals. Products made by Super Snack grace the shelves of every supermarket in New Zealand.
Super Snack has a new 6-year lease in place, which commenced on 1 September 2019.
Super Snack occupy 988.7m² of office and manufacturing space that is predominately fitted out as food manufacturing and storage facilities, including fridge and freezer space. There is also a blast freezer with a 3.2m stud height.
At the front of Super Snack’s unit is a two-storey office, with a medium-stud food-grade warehouse with associated cool stores, freezer and plant room behind. The detached warehouse also has its own additional cool store and freezer.
The rear of the property is leased by Chasers Food Company Ltd, a snack food manufacturer and contract food packaging service for other food manufacturers. Stocked in supermarkets throughout New Zealand, the company has gone on to win snack food product of the year.
Chasers Food Company has a new 6-year lease in place, which commenced on 1 September 2019.
Chasers occupy 594m² of warehouse and office space. Their unit features a warehouse, part of which has been lined as a food preparation facility, and internal offices split over two levels.