Lower Hutt industrial ideal for family trusts
This freehold property is for sale at 141 Hutt Park Rd, Gracefield, Lower Hutt
A small syndicate which has owned a freehold industrial property at 141 Hutt Park Rd, Gracefield, Lower Hutt, for 10 years is now selling it.
“With the majority of the owners retired and not wanting to actively manage commercial property, they have decided to sell,” says Tim Julian of Colliers International Wellington who is marketing the property with colleague Janette Lillas for sale by deadline private treaty closing at 2 pm on March 12.
Julian says that with a little over $200,000 of net income after deduction of expenses the property will be attractive to family trusts and smaller investors. He says that the income is spread over six tenants and a WALT (weighted average lease term) remaining of 3.55 years compares favourably with other investment grade property currently on the market.
Lillas says that the property was reroofed and the floor was resurfaced some seven years ago.
The result of these changes is that the property now encompasses a total floor area of 3686 sq m on a total flat and a fairly regular site area of 5060 square metres.
With access from both sides of the main structure the property offers highly functional warehouse and factory space with no internal columns in either of the main tenancies.
The income stream is anchored by Steel and Tube and Meycov Food Limited trading as Rutherford & Meyer which manufactures wafers, fruit pastes and FruBee natural ice blocks for sale domestically and internationally.
Steel and Tube is a well known steel supplier listed on the New Zealand Stock Exchange. Other tenants include a mechanical workshop, an office tenant, a wood turning company and a satellite tenancy for Steam and Sand which has its main base is in Porirua but services many clients in the Hutt Valley;
Julian says that with the vacancy rate in the Seaview/Gracefield precinct falling from 8 per cent to 5 per cent from December 2013 to October 2014, the market fundamentals are strong with many tenants frustrated that they cannot secure the premises that they want. This is why several design build projects are likely to start this year targeting tenants unable to find what they want in the existing available stock.
He says these will be completed at higher rental rates than currently prevail for existing buildings and will support rental growth at rent reviews over the next couple of years.
The building for sale was originally built as a spring factory but this operation ceased when vehicle assembly stopped being viable in the 1980s. The building was subsequently refurbished and now provides medium sized functional industrial accommodation.