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Investors flock to the market as corner site warehouse and bare land premises are placed up for sale

Tags: Commercial

The land and buildings housing a wool pressing and packaging company, along with a block of adjacent bare land, has been placed on the market for sale.


The land and buildings housing a wool pressing and packaging company, along with a block of adjacent bare land, has been placed on the market for sale.

The property at 82-84 Niven Street in Napier is occupied by one of New Zealand’s biggest wool pressing and packaging companies, New Zealand Wool Dumping Group which packs newly shorn wool for both domestic and exports markets operate their recycling of wool packs for use by local producers at the site.

The Napier property comprises some 2,403 square metres of freehold land across two individual titles. The larger piece of land with the warehouse and offices building on at 84 Niven Street is 1,391 square metres, while the smaller portion of undeveloped land at 82 Niven Street is 1,012 square metres. The location is zoned Main Industrial under the Napier City Council District Plan.

The rectangular-shaped property at 82-84 Niven Street is being marketed for sale by deadline private treaty (unless sold prior) through Bayleys Napier, with offers closing on September 16. Salesperson Mark Evans said Niven Street was situated in Napier’s foremost industrial suburb, Onekawa, and there were multiple options for the site’s future use.

“The siting of the 1,034-square metre warehouse and office building to one side of the property means that the other remaining undeveloped portion of land could be developed independently. This can only be undertaken at the expiry of New Zealand Wool Dumping’s lease,” said Evans.

“That would ideally suit a long-term owner-occupier looking to purpose-build their own premises at some stage in the future while also retaining a revenue stream from the tenanted building.

“Under that auspices, there would be the additional avenue in the future of either retaining the existing warehouse and offices as a standalone investment, adding a newer industrial unit at the conclusion of current tenancy to replace what is there now, or even integrating the existing warehouse structure into one larger complex.

“Any of these options are made all the more attractive for any new owner with the existing premises and landholding having dual street frontages onto both Niven Street and Husher Place.”

The Niven Street property currently generates annual revenue of $110,600 plus GST from two tenancies:

• New Zealand Wool Dumping on a current lease running through to 2026 with one further three-year right of renewal
and
• The property’s owner underwriting a lease through to 2022 on the remaining portion of the property.

The building consists of a large 1,034-square metre warehouse with associated office space on the ground and first floors linked by an internal staircase.

Constructed of steel and timber framing on concrete foundations and flooring, the open-plan warehouse complex has a 4.3-metre stud height at its edges, rising to 6.6 metres at its apex – delivering a new build standards rating of 67 percent.

Exterior walls on the building are a mix of corrugated iron and fibre cement sheeting covered in roughcast plaster. Clear panels within the iron roof provide good amounts of natural light. The corner-straddling building has three roller-door entry/exit points off Husher Place and contains staff amenities such as a lunchroom and bathrooms.

Evans said the Niven Street property was surrounded by medium to large-scale industrial-focused workshops and warehousing units.

“The Onekawa industrial local is predominantly tenanted by large scale industrial business with a mix of some office and retail spaces. The area benefits from good service vehicle access and arterial routes to both the city and the state highway expressway,” he said.

“For future potential development of the Niven Street property, the council’s Main Industrial zoning allows for a wide range of land uses within Onekawa, based on a cornerstone of the industrial and manufacturing sectors. Within that is the ability to build a multi-unit development comprising several smaller workplaces – such as those used by tradies as their depots or storage facilities.”

Property address: 82 - 84 Niven Street, Napier

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