Manufacturing Site with Investor Appeal For Sale

The land and building housing a specialist cabinet-making company credited with designing and fabricating scores of high-end residential kitchens, bathrooms, and laundries for homes located across the upper North Island have been placed on the market for sale.

The King Country premises in Otorohanga is home Customtone Kitchens & Interior Joinery which has been trading since 1993, and now has an extensive network of relationships with builders, interior designers and architects throughout the Waikato, Auckland and Coromandel regions.

Customtone Kitchens & Interior Joinery’s top-of-the-range interior fit-out creations have been featured in Your Home and Garden and Cuisine magazines, as well as receiving rave reviews on the TV show NZ’s Best Homes – with Phil Spencer. The company’s manufacturing plant comprises a 1,040-square metre warehouse/administrative offices and showroom space, sitting on some 2,833-square metres of freehold land.

Located in Otorohanga’s industrial precinct, the freehold block and building at 33 Progressive Drive is now being marketed for sale by auction on June 25 through Bayleys Hamilton.

Salesperson Josh Smith said the generally rectangular shaped property totally met the tenant’s operational requirements on all counts – providing immaculately presented showroom space for displaying multiple completed kitchen design options, along with modern administrative offices and staff amenities immediately behind, a highly efficient warehouse manufacturing and fabrication factory space, and easy vehicle access for goods deliveries through two road access points.

Smith said the fit-for-purpose factory’s substantial open plan floor space and high stud clear span steel purlin ceiling enabled Customtone Kitchens & Interior Joinery to simultaneously work on multiple kitchen, bathroom, and laundry fit outs for maximum efficiency output.

Externally, the site has a covered loading zone along with extensive gravelled yard storage for containers, and plenty of customer/staff car parking immediately in front of the building.

Constructed in 2008, the well-maintained modern premises at 33 Progressive Drive is neighboured by a multitude of well-known industrial tenants such as Balance Agri-Nutrients, Farm Source, Waikato Tractors, Enviro’ Waste and Enviro’ NZ, as well as several local engineering firms.

Customtone Kitchens & Interior Joinery is on a new current lease through to 2029 at the location, with a further three-year right of renewal, generating annual rent rental of $86,000 plus GST and outgoings.

The flat site is just a few hundred metres from State Highway 3 which runs down the mid-west of the North Island, and is zoned for commercial use under the Otorohanga District Council plan.

“Otorohanga is geographically strategically located to sustain the highly efficient delivery of Customtone Kitchens & Interior Joinery’s modular manufactured home interior fit-outs to cities across the Upper North Island – particularly the large population customer markets in Hamilton, Tauranga, and Auckland, which generate a high proportion of the company’s orders,” said Smith.

“Being a smaller rural service town rather than a bigger provincial capital, the Otorohanga location also allows Customtone Kitchens & Interior Joinery to operate under highly favourable lease terms, in line with other properties in the Progressive Drive area, but substantially cheaper than being in the suburban industrial hubs located within the bigger cities.

“From an investment perspective, 33 Progressive Drive meets all the criteria a strong commercial real estate opportunity demands – being a modern functional building with a high new building rating in a good location, accommodating a reputable tenant on long lease terms.”

Otorohanga has an estimated urban population of 3,320 residents, with a greater area population of 9,662 people. The town’s residential capacity is expanding, with more than 60 sections within the Westridge ‘greenfield’ subdivision being sold over recent years as affordable entry-level opportunities.

The council’s 2024-2034 Long Term Plan has also indicated a clear commitment to upgrading infrastructure assets within the district – particularly water, wastewater, flood protection, roading, and footpaths