An unassuming industrial warehouse and office property on 2,000 square metres of land in Te Puni Street, smack bang in the middle of the fast-evolving Petone bulk retail precinct, is to be auctioned.
Its inherent add-value potential and position as a linkage property between significant high-profile businesses operating from the area means that forward-thinking investor buyers and owner-operators are honing in on the offering.
Matt Gibbs of Bayleys Wellington says the Te Puni Street property has intrinsic value given the stellar growth underway at the western end of Petone arising from Council zoning changes which support bulk retail business.
“It’s certainly starting to look quite different at this end of Petone as it shrugs off its hard industrial past. All the big names in bulk retail are scrambling to secure a presence here,” says Gibbs, who is marketing the property with colleague Fraser Press.
The property at 10 Te Puni Street is around 200 metres away from the large Carters’ building supplies site which a company associated with former All Black Christian Cullen sold for $8.4 million early last month. Nearby is the new Briscoes store and Rebel Sport, while Kmart has just opened down the road.
“It’s not the prettiest building around, but it’s a solid, modest representation of its 1980s era and importantly, has been assessed at 70 percent of new building standard – a good threshold,” says Gibbs.
“In its current guise, the property is a fully-leased two-level office and warehouse building with 1,498 square metres of useable floor area, 22 car parks and a small rear fenced yard.
“The three leases in place are all medium term leases with rights of renewal beyond.”
Global door hardware supplier ASSA ABLOY are based in the rear warehouse/office building, while health care product trader Pureworld, and marine/aviation services company, Survitec Group are the other tenants.
The three tenants provide a current net rental income of $145,585 per annum with an assessed potential net rental return of around $205,000.
“There’s clear add-value rental upside to this property as restructured leases would offer a new owner an enhanced revenue stream,” explains Gibbs.
“Alternatively, an owner-occupier could transition into the building and sit tight as high demand in the vicinity adds weight to the location and potential of this property.”
The property will be auctioned on 29 June.