COLLIERS INTERNATIONAL – PRESS RELEASE
Friday 6th November 2009
Downer EDI Works to sell, lease back 22 depots across New Zealand
National infrastructure provider Downer EDI Works Limited (Downer) is offering one of the largest single vendor
portfolios ever put up for sale in New Zealand on a long term leaseback basis.
The 22 maintenance facilities, which vary in size and function, comprise six main regional sites and a number of
provincial depots. Leases range from ten years out to a market-setting twenty years.
The sales are part of Downer’s strategic growth plans and are marketed by Colliers International.
Cos Bruyn, Downer’s Chief Executive Officer, explains: “The reason for making the shift from ownership to leasing is
targeted at realising our overall growth strategy. By freeing up capital away from property investment we are creating
more opportunity to allow investment in our core business activities and in new growth sectors.”
Colliers’ National Industrial Director, Charles Cooper, says that the variety of the portfolio means that opportunities
exist for buyers at a range of levels. “We have never seen assets of this quality with new 20 year leases offered in
this country. With properties spread across the country with a rental range of $12,000 to $1.17 million per annum,
buyers will also find properties at comfortable investment levels in locations they know. This is a solid cash flow
investment.”
The sales will take place through two main tranches:
1. Six large regional depots will be sold via private treaty with a closing date of 26 November 2009. The
properties have new 20 year leases in place with guaranteed growth and each with six rights of renewal options of five
years:
- Auckland – 645 Great South Road, Penrose – a 2.4691 hectare block offering an annual rental of $1,170,711 per
annum;
- Dunedin – 133 & 135 Main South Road – a 2,199sqm property. Annual market rent is set at $299,840;
- Hamilton – 16 Manchester Place – a 1.9411 hectare block in Te Rapa at an annual rent of $606,875 per annum.
- Hastings – 1436 Omahu Road – 2.1424 hectare property offering an annual market rental of $300,247 per annum;
- Mt. Maunganui – 198 Totara Street – a high profile 7,396sqm corner site, providing a market rental of $258,860
per annum;
- New Plymouth – 705 Devon Road – a 3.416 hectare block offering a market rent of $315,303 per annum.
2. The remaining 16 properties, each of which have new ten year leases with four rights of renewal options of five
years, will be put up for sale through two auctions:
Nine South Island properties at 11am on 25th November at The Railway Station in Dunedin: Seven North Island
properties at 11am on 26th November 2009 at the Hilton Lake Taupo:
- Balclutha, Otago – rental $42,195 pa;
- Gore – rental $22,887 pa;
- Invercargill – rental $182,906 pa;
- Lawrence – rental $32,641 pa;
- Lewis Pass – rental $74,350 pa;
- Lumsden – rental $13,550 pa;
- Palmerston – rental $19,983 pa.
- Te Anau, Fiordland – rental $102,616 pa;
- Twizel – rental $60,553 pa. - Gisborne – rental $156,875 pa;
- Hawera – rental $79,090 pa;
- Raetihi – rental $29,989 pa;
- Taumaranui – rental $107,457 pa;
- Thames – rental $52,870 pa;
- Wairoa, Hawkes Bay – rental $62,810 pa;
- Whangamomona – rental $12,000 pa.
- ENDS -