Receivers order sale of property

20:31, Nov 19 2012
Storage King
The Storage King property in Mt Cook has a September 2012 rating valuation of $5m, but all offers will be considered.

A second Wellington Storage King property has been put up for sale by receivers.

The sale of the Adelaide Rd block, ordered by David Ruscoe of Grant Thornton, follows the aborted sale of the larger Storage King complex in Thorndon earlier this year.

In that case the receiver decided the offers were not good enough.

Both properties were owned by bankrupted property developer Frank de Vries.

Cooroy Properties, the de Vries company which owned the Storage King property at 84 Adelaide Rd, Mt Cook, has outstanding debts of $10.48 million plus default interest, according to the receiver's latest report.

The property was bought by de Vries in 2007 for $9.9m but could now be sold for a fraction of that.

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The property has a September 2012 rating valuation of $5m but the receivers would consider all offers, said Colliers International agent Rick Stace.

It was a commercial investment opportunity in a high-profile location.

"This property offers investors a substantial land holding in a busy commercial location, occupied by an established tenant." Stace said.

The tenant, Minyama Properties trading as Storage King, holds a five-year gross lease dating from April 2011, with the right to renew for two further terms of five years each. Its annual rent of $374,000 will increase to $401,000 on April 1 and further rent reviews will occur if rights of renewal are exercised.

The property consisted of four interconnected two- and three- level buildings on a 2306 square metre freehold site and had a total floor area of 6280sqm.

The buildings dated back to the 1950s and 1970s and were used by Spincraft sheet metal works before being converted into a self-storage facility around 1994.

It had just over 800 storage units and was popular because of its location on a main arterial route just south of the Basin Reserve, Stace said.

The freehold land and buildings are being sold by deadline private treaty closing on December 4.

The Dominion Post