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MSD service centre site offers attractive bottom drawer investment

A high-profile Lower Hutt building that has for nearly 20 years housed one of New Zealand’s largest government agencies has been put up for sale.

The single-story building on a more than 1,400-square-metre site in the Naenae shopping precinct has been fully leased to the Ministry of Social Development (MSD) since 2005, as one of nine MSD service centres serving the Wellington region.

With more than 160 centres serving over a million people nationwide, MSD is the country’s lead agency for the social sector and one of New Zealand’s largest government organisations. Its work spans housing, superannuation and employment services, income support and providing student allowances and loans.

MSD occupies its Naenae service centre premises on a current lease that runs through to 2029, with three further three-year rights of renewal. The lease generates an annual net rental return of $165,611 plus GST with built-in market rent reviews in 2026 and at lease renewals.

The freehold property at 2 Vogel Street, Naenae, Lower Hutt, is being marketed for sale by Richard Faisandier and Christian Taylor of Bayleys Wellington.

It will go under the hammer at an auction on Thursday 7 December.

Faisandier said the approximately 936-square-metre building sat on a site of some 1,459 square metres, which forms part of the General Business zone under Lower Hutt’s district plan.

“The premises encompass a single-storey structural steel framed building with masonry block side walls and a lightweight roof. It has undergone extensive fitout and infrastructure upgrades and has a seismic rating from a 2013 report of 68 percent of new building standard.

“The property is currently used by Community Link (MSD) and has undergone numerous alterations with a significant fitout upgrade for the last quarter of 2019 including installation of LED lighting. Internally, the premises are open-plan with a suspended ceiling, with several offices and storage areas located on the left side of the building and a kitchen/staff area at the rear,” said Faisandier.

Taylor said the site benefited from convenient dual access from Vogel Street plus a service lane at the rear and a total of nine on-site car parks at the front and back of the building.

“Excellent exposure is assured for the property and its long-term tenant by around 20 metres of prominent frontage to Vogel Street, just off the intersection with busy main arterial Cambridge Terrace.

“The site is on the southern fringe of the Naenae shopping centre, whose concentration of more traditional retail activities neighbour a combination of commercial and industrial properties to the south.

“Notable businesses in this area include Bunnings and Resene and the property is handy to amenities such as the Naenae medical centre, library and swimming pool, along with bus and rail transport and schooling.

“With a top government tenant in occupation on a long-term lease in this proven location, this property will turn investor heads as a bottom-drawer investment of the highest quality,” Taylor said.

Click here for more information on the listing.

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