Five contiguous properties in Wellington’s prime industrial precinct, that are occupied by one tenant and for sale separately or in combination, are expected to generate strong enquiry from investors.
The Seaview properties are located at 2-10 Wareham Place, a well-formed cul-de-sac on the northern side of Barnes Street, the wide feeder road bisecting Port and Seaview Road that has ‘B’ train capable turnaround and all services underground to assist large vehicle movements.
Vacancy levels in the Seaview-Gracefield precinct are at the lowest levels seen in recent years, and the industrial sector is keenly contested by astute buyers.
Held in five titles, ranging from 754sqm to 1,019sqm, and comprising three secure yards and two sites with high-stud warehouse buildings, all lots have their own separate lease to Keith Andrews Trucks Limited – New Zealand’s largest commercial vehicle dealer.
The eight-year leases across each of the individual titles commenced in September 2020, with a further eight-year right of renewal, market reviews every two years and guarantees.
The properties return combined net annual rental of $251,002 plus GST.
Andrew Smith, Bayleys Wellington Commercial is marketing the properties by tender closing Wednesday, 20th September.
Smith was instrumental in the sell-down of this original Seaview subdivision back in 2006 and has subsequently resold almost every property in the precinct.
He is acting for locally-based retiring vendors who incrementally acquired the adjoining sites for scale and operational efficiency for their own business which they later sold to Keith Andrews Trucks Limited, retaining ownership of the land and buildings.
Smith says the opportunity exists to purchase sites individually, in combination, or the whole parcel of five properties together.
“The vendors will consider all offers and whether there ultimately ends up being one overall owner, five separate owners or combinations, owning a building and/or yard in this location has proven to be a rewarding long-term investment.
“Heavy duty firms like Keith Andrews simply cannot function without yard space, and trying to buy a building with a yard in Seaview these days is near impossible as land is just too valuable.
“Purchased individually or together, each of these properties will provide a solid return.”
Smith said given the tight supply fundamentals within the precinct, there could be well-resourced and forward-thinking owner-occupiers prepared to secure the properties, collect the income for the lease duration – with a view to occupation themselves at lease expiry.
“Tenant demand for space like this is unrelenting so purchasing these properties could be viewed as low risk given the active occupier market and a dire shortage of industrial stock region-wide,” he says.
“Also in their favour is the fact that the properties are arguably under-rented so there’s opportunity for a new owner/s to revisit the rental rates at lease review time.”
Designed by Kiwispan Limited and built circa-2007, the two warehouse buildings had initial seismic assessment reports carried out in July of this year, with both achieving 85 percent new building standard, considered A-grade.
Additionally, the warehouse building at 6 Wareham Place has a fully-functional and compliant truck workshop pit.
Overall industrial vacancy for the Wellington region is 1.3 percent, making it one of the tightest industrial markets in the country, says Smith.
“Seaview-Gracefield is always in high demand from occupiers and has attracted big name national and multi-national tenants like Placemakers, BOC Gases, Mobil, BP, NZ Post, Truck Stops NZ, New Zealand Van Lines, Oppenheimer, Linfox, Mainfreight, Animates and Winstone Wallboards.”
Keith Andrews has a nationwide presence, backed by three decades of expertise. Launched in Whangarei in 1991 as a dedicated Fuso brand dealership, Keith Andrews has since expanded to sites throughout the North Island providing sales, parts and service for Mercedes-Benz, Freightliner, Fuso and Daimler commercial vehicles.