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Rare commercial opportunity in Khandallah

With minimal commercial property available in the Wellington suburb of Khandallah outside of the village itself, savvy investors, owner-occupiers and developers are eyeing up a prominent corner site now for sale in a largely residential precinct close to the Khandallah railway station.

The 1,029sqm parcel of land at 7 Burma Road, on the corner of Baroda Street, was formerly home to a service station and subsequently converted to three retail tenancies which have traditionally leased well. Its long-time private investor owners are realigning their property assets, hence the sale.

The building area is around 298sqm across the three tenancies, with existing occupiers Dunshea’s Deli and mechanic business Brendon Motors mechanics on fairly short-term leases, while the third tenancy is vacant.

Until very recently, that space was occupied by the popular Automat café and restaurant, which took over the premises after Civic Video closed in 2013. Additionally, Wellington Electricity have a lease over a small area for a transformer.

There are 10-plus on-site car parks, and the property, if fully leased, has potential net annual income of over $129,000 plus GST providing an attractive split-risk investment opportunity, or could be transitioned into by an owner-occupier starting with the vacant 120sqm component which still has the earlier service station canopy intact.

Salespeople marketing the property say importantly, the site has favourable Neighbourhood Centre zoning which allows concentrated mixed-use development and permits building up to 22 metres, with necessary Council due process followed.

Bhakti Mistry and Fraser Press, Bayleys Wellington Commercial are taking the property to tender, closing 5th June.

Calling it a “coveted location”, Mistry says the property stands out as a prime opportunity given the current footprint on the site and its potential for redevelopment due to the zoning credentials.

“A new owner could look to re-lease the tenancies as they roll over and effectively landbank the generous site until development fundamentals line up.

“The demand for residential accommodation is strong in Khandallah – as it is elsewhere around the city – and ultimately some form of mixed-use development with retail at street level and residential above would work well here.

“Burma Road is a main arterial and provides streamlined access to many of the suburb’s recreational areas and the CBD, and the subject property is just 120 metres from the Khandallah railway station so convenience is super high.”

Automat restaurant reluctantly closed recently after being described by residents as “a community lifeline” during the pandemic, and a new hospitality owner-occupier could look to open in the space while collecting income from the other tenancies.

“Alternatively, the site has broad appeal for a range of business types including professional service providers, beauty services, or businesses aligned to the automotive sector given the busy mechanic’s workshop next door.

“Brendon Motor Group has a wide presence across Wellington with a number of outlets and the Burma Road business is always busy with people coming and going – it clearly works well for them given the loyal resident catchment and convenient access.

“This foot traffic would support a complementary business such as a tyre shop or similar, but equally, any retail or service business could find its niche here.”

Click here for more information on the listing.

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