Thirty years of ownership of a large industrial land holding in the Wairau Valley is about to come to an end with the tendering of an 8,524sqm site with substantial frontage to Archers Rd.
The vendors who have owned the property at 201 Archers Rd since 1987 have appointed Ranjan Unka and Trevor Duffin of Bayleys North Shore Commercial to market the offering by tender, closing on October 26 unless sold prior to that date. The property features in Bayleys’ latest Total Property portfolio magazine.
“Property is very closely held in the Wairau Valley and it is not often that a holding of this size with such high-profile exposure on a main road comes onto the market,” says Unka.
“It offers a huge opportunity for a wide range of prospective purchasers - from developers and add-value investors through to yard based businesses or owner-occupiers looking for a large block of well-located land to build new premises.”
The rectangular landholding, which is zoned Light Industry, has a very gentle contour and wide street frontage of approximately 65 metres onto Archers Rd and a depth of approximately 130 metres, he says.
Buildings comprise a 1,600sqm warehouse constructed in the early 1980s, plus a variety of small structures and lean-tos of undetermined age and size. The main building’s façade was refurbished in 2003 but it is otherwise in original condition, says Unka. The site is mainly graveled and fenced, with an under utilised strip of land at the rear.
The property has two longstanding tenants who are providing holding income of $181,333 per annum. Newflor Industries Limited, established in 1977 and one of New Zealand’s largest suppliers of residential and commercial floor coverings, occupies the main warehouse. Timber Recyclers Limited is the other occupant and predominantly uses the property as a demolition yard.
“Both tenants have operated from the property for many years, but are now on month-to-month leases which means the purchaser could terminate their tenancies whenever they choose or they could endeavour to negotiate a longer tenure with one of both of them and/or look for other tenants. This could be an option for a ‘sit and hold’ purchaser,” says Unka.
“However, the site is underdeveloped with a low building coverage so for purchasers wanting to maximise the rental return, a comprehensive redevelopment would be the most logical course of action.”
Trevor Duffin, who specialises in the sale and leasing of properties in the Wairau Valley, says the area is starved of good quality smaller industrial units and the site would be ideal for a development focused on this sector of the market.
“The vacancy rate from smaller industrial units in the Wairua Valley has been at negligible levels for many years and it’s now got to the point where vacant units are in some instances fetching a higher price than tenanted units because businesses are so desperate to get a foothold in the area,” he said.
“In some instances, tenants are also offering more than the asking rental just to secure premises Both tenants and owner-occupiers are also often having to settle for older-style, very average quality units which they are paying top dollar for.
“All this suggests that a subdivision of the site into smaller units, with a high ratio of warehouse to office space and possibly some live/work units if the necessary consents can be obtained, would meet with a very positive response from the market.”