With industrial vacancy levels in the Ngauranga precinct tracking below those in other parts of the Wellington region, a sizeable warehouse/office offering half-way up the gorge is expected to draw strong interest from investors.
The property at 1 Lower Tyers Road was purpose-built for long-standing tenants The Information Management Group (TIMG) in 1999 and was last sold in 2009.
TIMG is a provider of specialist secure document storage and document destruction services and is part of the Freightways group of businesses which includes NZ Couriers, Post Haste and DX Mail. There are TIMG branches across the North Island and in Christchurch.
Recent research undertaken by Bayleys pegs vacancy levels in the popular Ngauranga gorge area at 3.6 percent – almost one percentage point below the total region’s 4.5 percent vacancy. Demand is high and supply is low for quality premises for the capital’s high-performing industrial sector.
Home to some of the region’s largest logistics and distribution sector players, Ngauranga’s pivotal location on the Wellington roading network means it has long-term appeal for businesses requiring ready access to arterial routes and the inner city.
Grant Young of Bayleys Wellington says he sold the Lower Tyers Road property to the current local investor owners eight years ago and it has proven to be a reliable hands-off investment vehicle – made even more robust by the established presence of the long-term occupiers, TIMG.
“This is a classic example of an industrial investment that can do the hard work for a hands-off, passive investor looking to leverage off the intrinsic locational attributes of the property – which has long-term relevance for industrial sector tenants – and a committed tenant,” says Young.
“For businesses like TIMG that work to time-sensitive deadlines and turnarounds, a location such as Ngauranga is definitely conducive to meeting client service targets.
“While currently a great fit for TIMG’s business operation, the property has longevity in the market as it’s inherently adaptable to a range of other industrial uses thanks to its 10 metre-high stud that offers substantial cubic capacity for racking and efficient storage purposes.”
TIMG has four years remaining on its current lease term with the option of four, five-year rights of renewal beyond. The net rental is $741,943 per annum + GST.
Young says the building has around 4,000 sq m of warehousing and around 700 sq m of predominantly first floor office space. There is a secure electronic vault and staff amenities on the ground floor of the building, and parking for 30 cars in the securely-fenced yard.
He says the property’s credentials are further enhanced by being located well above any potential tsunami line and for having strong seismic compliance with its assessed new building standard (NBS) rating above 100 percent.
Tenders close with Bayleys Wellington on Wednesday, 28 June.