A refurbished former warehouse property in central Whanganui which has for years housed the offices of a top government agency has gone up for sale.
The property at 93 Ingestre Street sits at a high-profile corner on a city ring road accessing the CBD and main retail strip. It is leased to the Ministry of Education and a Cory’s Electrical store, generating a total net rental income of $261,080 plus outgoings and GST per annum.
The Ministry of Education is the Government's lead advisor on the New Zealand education system, with a government-funded annual budget of over $20 billion.
The Ingestre Street building has been home to its Whanganui office for 16 years, during which time the ministry has invested heavily in its own fitout to create a premises that meet its specific needs.
The ministry’s role includes developing education policy, providing support and resources to education providers and teachers, and managing the portfolio of hundreds of school properties across the country.
The Ministry of Education pays an annual gross rent of $209,000 for its approximately 970-square-metre premises and 16 car parks. The current lease runs through to 2030, with three further three-year rights of renewal.
Cory’s Electrical is an online and nationwide supplier of electrical products and services with 48 branches across New Zealand.
Its Ingestre Street outlet of some 547 square metres, with 20 car parks, generates an annual net rent of $65,168 plus outgoings and GST, on a current lease that extends to 2025 with three further three-year rights of renewal.
Approximately 200 square metres of secure storage in the building’s basement generates a further $6,509 per annum.
The freehold land and building at 93 Ingestre Street, Whanganui, are being marketed for sale by James Higgie, Jordan Davis and John Bartley of Bayleys Real Estate.
Sale is by way of deadline private treaty closing on Wednesday 9 August.
Higgie said the property consisted of an approximately 1,720-square-metre building on some 2,632 square metres of commercial-zoned land, with 36 car parks.
The building has an Initial Evaluation Procedure seismic rating of 75 percent of new building standard.
“This is a low-maintenance, easy care property. With its two established quality tenants from very different fields – anchored by one of the country’s biggest government agencies – there is diversification and a spread of risk that makes for an excellent passive investment,” Higgie said.
Originally constructed in the mid-1960s as a warehouse/distribution facility, the structure is a substantial steel portal and truss building with attached two-level offices. The property has been refurbished throughout and has recently been fitted with a new Colorsteel roof.
Davis said the property had been subdivided into two main tenancies with significant refurbishment and alterations over the past decade to accommodate the needs of the existing tenants.
“The Ministry of Education has invested heavily in its own fitout to create high quality offices over two levels. Fixtures include lift access to the second level, air conditioning throughout and security and fire alarm systems. That this key government organisation has been in occupation for 16 years is testament to the suitability of the property for their needs,” Davis said.
Cory’s Electrical occupy the other main tenancy comprising a mix of workshop, showroom and office accommodation together with plenty of customer parking.
Davis said seven secure and dry basement stores offered the opportunity to generate additional monthly income to enhance the overall financial performance of the investment.
Bartley said the Ingestre Street property and its tenants benefited greatly from a prominent and accessible central city location.
“This large, centrally located corner site presents more than 50 metres of frontage to an outer commercial ring road accessing the central business district and main arterial route, Victoria Avenue.
“This assures the property and its occupiers of terrific exposure to passing traffic and easy access to the city centre,” Bartley said.
The attractiveness of the location was underlined by the stature of surrounding occupiers such as Rabobank, PGG Wrightson and building suppliers Carters, along with Landbased Training and the city’s Innovation Quarter, he said.