The significant 5,439-square metre industrial bakery premises in Silverdale on Auckland’s northern boundary is home to the well-known pie-maker Dad’s Pies - which was acquired by Australian-owned Allied Foods at the end of last year.

The property at 57 Forge Road has been purchased by First Light Capital Limited to add to its First Light Property Fund Limited investment vehicle which has a projected pre-tax cash return of 6% for FY23 and a WALT of 5.7 years. The purchase price for 57 Forge Road was $11.775million, with the transaction settling on August 23rd.
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The plant consists of some 2,500-square metres of warehouse/manufacturing facilities, a 157-square metre café and retail outlet, and 157-square metres of offices. The Silverdale premises was purpose built for Dad’s Pies in 2002 and expanded in 2006 as consumer demand for the brand’s tasty treats continued to grow.
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Dad’s Pies is on a lease running through to 2030 with three further five-year rights of renewal – generating current annual net rental of $631,769.56.
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Located approximately 1.5-kilometres from State Highway One, the Dad’s Pies building in the Silverdale Industrial Estate is a portal frame design with form steel construction sustained by a mix of tilt slab and long run cladding. The building’s offices and café have been recently refurbished – including the installation of a new roof, in addition to cladding, and guttering. Plans are in place for potential expansion at the Forge Road/Peters Way site – with Dad’s Pies holding the lease to a neighbouring 3,000-square metre warehouse. A consented connection already exists between the two separately owned facilities.
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The Silverdale pie making premises at 57 Forge Road is the latest substantial premises to be added to First Light Capital Limited’s First Light Property Fund Limited investment vehicle. The fund already includes two
commercial property assets:
- 233 Collingwood Street in Hamilton – comprising 2,152-square metres of freehold land, and a 1,720-square metre building. The property was purchased for $14million and
- 2 Harris Road in East Tamaki, Auckland – comprising a 1,515-square metre two-storey office complex sitting on some 2,819-square metres of freehold land. The property was purchased for $9.15million.
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Within the established tenancy schedule of the two cornerstone fund properties are insurance companies NZI and Aon, real estate agency Bayleys Real Estate, workplace health and safety regulator WorkSafe NZ.

First Light Capital director Toby Hunn said the acquisition of the Silverdale property diversified the fund’s investment by both asset class and geographic location and reflected the company’s intention to operate an
‘open ended’ fund continuously raising capital as its asset base increased.

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“The Silverdale industrial premises contains some iconic brand names in the New Zealand pie market - and replicates the quality of tenants in the fund’s other existing portfolio assets,” Mr Hunn said.
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“With a long-term vision and model, the fund is designed to provide investors with access to a diversified portfolio of what will be made up of New Zealand industrial and commercial properties,” he said. Shane Scott, CEO of First Light Capital said:

“The principal objective of the fund is to allow shareholders of the fund to collectively invest in New Zealand industrial and commercial properties located in growth sectors of New Zealand in order to derive investment returns which are closely correlated to returns those investors would have derived had they invested themselves… but with the benefits of scale and portfolio diversification.
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The fund is ‘open ended’ – meaning we will continually raise capital for additional investment in order to incrementally reduce investment risk across the portfolio both geographically and in asset class diversification. The intention is to seek out further properties to add to the portfolio in future.

Our strategy is to provide clients with the closest alternative to direct property ownership as possible. Shareholders also stand to benefit financially from any capital gain on properties within the fund – thereby
seeing the initial $1 share price being worth more.”

Mr Hunn said the 57 Forge Road property acquisition would allow the fund to maintain its annual net pre-tax cash dividend of six percent per annum, with dividends paid monthly. First Light Property Fund Limited is a portfolio investment entity (PIE) for tax purposes – meaning that investors benefit directly from the fund’s tax deductions and are taxed at their applicable tax rate capped at 28 percent.
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The First Light Property Fund Limited is one of a number of Funds that is managed by First Light Capital Limited.,First Light Capital’s portfolio of Auckland real estate assets are located in New Lynn, Remuera, the CBD, Manurewa, Avondale, Albany, Grey Lynn, and Takapuna – encompassing a mix of industrial and commercial premises tenanted by such high-profile corporates as Coca Cola Amatil, Bunnings Trade, and Waitemata District Health Board, alongside multiple sites tenanted by the Ministry of Social Development.

For further information or an investment statement, contact First Light Capital Limited director Toby Hunn. 027 5748477 or email toby@firstlightcapital.co.nz

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