Former carpet factory offers cashflow upside

A sprawling Horowhenua industrial site for sale with 30-plus tenants plus major scope to fill vacancies, refurbish and redevelop, is being marketed for its unique mix of ‘grunty cashflow and serious upside’.

The former Feltex carpet factory in Foxton encompasses some 23,754 square metres of buildings, from large-scale warehouses to workshops, storage, and some office space. These are underpinned by around 6 hectares of industrial-zoned freehold land in two titles – one on Ladys Mile, and a smaller adjacent parcel of bare land on Duncan Street.

The property ranks among the largest industrial holdings in the Horowhenua and Manawatū. The prominent corner location near the town centre and State Highway 1 supports efficient operational access across the lower North Island.

Diverse existing tenants span the likes of manufacturing, storage, engineering and automotive workshops, and local trades. Their presence generates a total gross passing income of circa $568,645 per annum (excluding GST), with considerable scope for rental growth.

The two freehold titles at 9 Ladys Mile and 15 Duncan Street, Foxton, are being offered to buyers, together or individually, on an ‘as is, where is’ basis. They will be sold via expressions of interest closing on Thursday 22 October (unless sold prior), through Bede Blatchford, Karl Cameron and James Crawley of Bayleys Manawatū.

“Originally known for decades for turning out quality carpets, this expansive, strategically positioned industrial property is ready for its next owners to weave a new story for its future,” Blatchford says.

“New owners will reap a formidable, diversified income from more than 30 tenancies on varying lease terms, with some 8,669 square metres of vacancy offering potentially over $200,000 of immediate gross rental upside.

“In addition to this, surplus land and major infrastructure, including water bores, mains sewer connection and substantial power capacity, position the property for future redevelopment,” says Blatchford.

The site is supported by plenty of on-site parking, sealed yard and hardstand areas. It sits near a loop in the Manawatu River which connects to the boat ramp at Foxton Beach.

Cameron says its scale and unique multi-tenancy configuration could support a staged approach to unlocking its full potential.

“Multiple buildings and tenants provide versatile income with the ability for the property to be refurbished or redeveloped, delivering the upside in stages while retaining cashflow throughout.

“In effect, this enables new owners to reap the benefits of a value-add investment today, and a redevelopment site when the time suits,” says Cameron.

The property sits in a highly visible position with extensive frontage to Ladys Mile and Duncan Street.

Crawley says the location offers an established and practical base for commercial, trade, service and industrial businesses to service the local community, along with the surrounding rural catchment and wider lower North Island market.

“Direct access to State Highway 1 and local road networks ensures efficient travel north and south to Levin, Palmerston North, and the broader Manawatū-Whanganui region for staff, contractors, service vehicles and deliveries.

“Successive new expressways north of Wellington have cut drive times, and the Ōtaki-to-north-of-Levin expressway now under construction will further improve access,” Crawley says.