The high-profile central Whanganui offices that have housed the Ministry of Education for over 15 years have gone up for sale, offering a “textbook” passive investment opportunity.
The refurbished former warehouse building at a prominent corner on Ingestre Street is leased to the ministry and a Cory’s Electrical store, generating a total net rental return of $261,080 plus outgoings and GST per annum.
With a government-funded annual budget exceeding $20 billion, the Ministry of Education is one of the country’s biggest government agencies. As the Government's main advisor on the education system, its wide-ranging remit includes developing policy, supporting education providers and teachers, and managing a national portfolio of hundreds of school properties.
Positioned on a city ring road accessing the CBD and main retail strip, the Ingestre Street site has housed the ministry’s Whanganui offices for 16 years. The ministry has invested heavily in its own fitout during this time to tailor the premises to its needs.
The Ministry of Education occupies its premises of approximately 970 square metres with 16 car parks on a current lease that extends to 2030, with three further three-year rights of renewal. The lease generates a gross rent of $209,000 per annum.
Online and nationwide electrical supplier Cory’s Electrical has more than 45 outlets throughout the country.
Its approximately 547-square-metre Ingestre Street outlet, with 20 car parks, generates a net rent of $65,168 plus outgoings and GST per annum, on a lease that runs through to 2025 with three further three-year rights of renewal.
Seven secure basement stores provide the opportunity to generate additional monthly income to further enhance the performance of the asset.
The freehold property at 93 Ingestre Street, Whanganui, is being offered for sale by negotiation through James Higgie and John Bartley of Bayleys Real Estate.
Higgie said the approximately 1,720-square-metre building sat on some 2,632 square metres of commercial-zoned land.
“Originally constructed in the 1960s as a warehouse/distribution facility, this is a substantial steel portal and truss structure with attached two-level offices. The building has been refurbished throughout and has recently been fitted with a new Colorsteel roof, making this a low-maintenance, easy care property for new owners,” Higgie said.
The building has an Initial Evaluation Procedure seismic rating of 75 percent of new building standard.
“With two quality tenants from very different fields well established at the site – including one of the biggest government agencies – there’s diversified income and a spread of risk that make this a textbook passive investment,” Higgie said.
Bartley said the building had been divided into two main tenancies with substantial refurbishment and alterations carried out to accommodate the tenants’ requirements.
“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 floor, air conditioning throughout and security and fire alarm systems,” he said.
That this key government organisation had been in occupation for 16 years was testament to the quality and suitability of the property for their needs, Bartley said.
Cory’s Electrical occupies the other main tenancy comprising a mix of showroom, workshop and office areas, along with plenty of customer parking.
Bartley said the highly visible and accessible central city location was a key advantage for the Ingestre Street property and its tenants.
“The stature of nearby occupiers such as Rabobank, PGG Wrightson and Carters, along with Landbased Training and the city’s Innovation Quarter, underscores the desirability of the location.
“The site gains maximum benefit from this strategic position thanks to its more than 50 metres of frontage to an outer commercial ring road giving access to the central business district and main arterial Victoria Avenue,” said Bartley.
As a result, the property and its occupiers were assured of outstanding exposure to passing traffic and easy access to the city centre, he said.