Hall's Portfolio Syndication by Silverfin

Strategically located coolstore and logistics sites offered for syndication

Two substantial coolstore facilities with long-term leases backed by national logistics operator, Hall’s Group Limited, are being offered to investors through a proportionate ownership scheme.

Silverfin Capital Limited (Silverfin) is offering investors a chance to acquire a beneficial interest in both properties through a propionate ownership scheme comprising 334 investment parcels of $50,000 each.

Investors are projected to receive a pre-tax cash return of 8.0 per cent per annum, forecast to 31 March 2020.

Both freehold properties are in strategic locations in Auckland and Waikato, with excellent proximity to key markets and production facilities.

The 2.1ha facility at 1 and 15/1 Spartan Road in Takanini, South Auckland, is directly adjacent to the Takanini motorway exchange. The property is leased to Hall’s Refrigerated Transport Limited for a 12-year term.

The 1.2ha property at Lot 1 Factory Road, Waharoa, is in a prime position to service two nearby Waikato dairy factories. The property is leased to Icepak New Zealand Limited for a 15-year term.

There are parent guarantees over both leases. The blended weighted average lease term at settlement will be 13.5 years.

Both Hall’s Refrigerated Transport Limited and Icepak New Zealand Limited are subsidiaries of Hall’s Group Limited – a long-standing logistics company established more than 40 years ago.

It provides comprehensive transport, distribution and storage solutions for customers including leading New Zealand food industry brands.

Colliers International Syndications Director Charlie Oscroft says this is an ideal opportunity to invest in the strongly performing New Zealand industrial property market at an affordable price point.

“The Hall’s Portfolio offers excellent investment fundamentals, from strong tenant covenant to built-in rental growth,” he says.

“Hall’s is a well-established, market-leading refrigerated storage and transport provider that operates a nationwide logistics network from Auckland in the north to Invercargill in the south.

“The two properties for syndication comprise refrigeration logistics and storage facilities with future expansion potential.

“Both are ideally located for convenient access to distribution and transport routes that service key customers across the North Island.

“With the backing of a strong national tenant and Silverfin’s proven portfolio management expertise, the Hall’s Portfolio scheme offers an outstanding industrial investment.”

The portfolio has been sold by and leased back to Hall’s for $30,398,387, returning an initial annual rent of $2,092,176. The purchase price is fully supported by an independent valuation from CBRE Valuation Services.

The properties have a combined land area of 3.2ha with a gross floor area of 11,825sq m.

The Auckland property is situated within the expanding industrial suburb of Takanini in South Auckland.

It is strategically situated adjacent to the Takanini Motorway exchange on the Southern Motorway with easy access to both north and south off-ramps.

Built between 2000 and 2001, the property comprises a warehouse and coolstore with associated offices totalling 3,701sq m. The building has a National Building Standards (NBS) rating of 80 per cent. 

The warehouse has a large storage distribution area, two separate coolstores with stud heights of 8m to 10m, and one small coldstore. There are six cart docks plus a side dock with a ramp.

Zoned Light Industry under the Auckland Unitary Plan, the property has only 18 per cent site coverage, providing substantial capacity for future expansion.

An extensive yard offers 39 car parks and about 34 truck-trailer parks.

The Waikato property is in Waharoa, some 6km north of Matamata, and strategically located in the middle of dairy country between Tauranga and Hamilton.

It is next to a railway line and has its own railway siding, which is used by Icepak’s key customers, including Fonterra.

The property is directly adjacent to the Open Country Dairy factory, which is one of Icepak’s largest customers, and some 20km south of the Tatua Co-operative Dairy factory, another key customer.

Constructed in 2008 and expanded in 2016, the property comprises a modern cool and coldstore facility providing some 60,000 cubic metres of storage with a wide operating range of +/-20C.

The building has a NBS rating of 100 per cent.

The new coldstore has narrow aisles and a high-reach fork lift in conjunction with a robotic satellite racking trolley truck – a first in New Zealand.

Hall’s has depots strategically placed throughout New Zealand and employs some 400 people.

Its substantial fleet of more than 300 refrigerated trailers is purpose-built for New Zealand conditions and is among the most sophisticated in the country.

Hall’s Group Limited purchased storage and logistics business, Icepak New Zealand Limited, some four years ago.

Icepak provides storage and distribution services for primary producers and manufacturers specialising in dairy, horticulture, meats, fish, honey and pharmaceuticals. It operates from seven sites from Auckland to Christchurch.

The Hall’s Portfolio scheme and its properties will be managed and administered by Silverfin on behalf of its investors.

The offer is open to wholesale and eligible investors until 5pm on Thursday, 20 September unless it is fully subscribed, extended, withdrawn, or closed earlier.

Silverfin has steadily become a leading player in the New Zealand property syndication and management market since it was founded in 2016.

The company was established by experienced syndicator Cheryl Macaulay, who sadly passed away earlier this month.

Silverfin’s executive team, led by Chief Executive Officer Miles Brown, is committed to continuing the strong track record established under Macaulay’s leadership.

The company currently has approximately $220 million of commercial property assets under management.

Silverfin’s schemes are structured to provide investors with a cash return from commercial and industrial real estate, without the burdens of private property ownership.


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Charlie Oscroft

Director

Auckland CBD

With an extensive background in many real estate markets spanning London, Hong Kong, Brisbane, Perth and Auckland, I bring a wealth of experience to Colliers International in client management and delivering 5 star customer service.

Charlie specializes  in both the sale of commercial, retail and industrial property as well as Syndication sell downs on behalf of clients. He is one of the leading sales brokers promoting the Auction Business.

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Kris Ongley

Associate Director

Auckland CBD

Kris is an Associate Director in Colliers' central Auckland Investment Sales & Syndication divisions.  He has worked professionally in the commercial property industry since 2005 first as a commercial property solicitor in Auckland and Wellington and since 2012 as a broker with Colliers International.

MARKET SPECIALISATION

Kris specialises in the sale of commercial assets and development sites Auckland city's central commercial areas. He is also part of Colliers’ Syndication division which acts on behlaf of syndication clients raising equity from private investors to acquire large investment and institutional-grade assets.  

 

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