Attracting around 40 enquiries in its first week on the market, the interest being shown in a fully-tenanted industrial property for sale in Porirua confirms that investors are still chasing big sheds to add to their portfolios.
With low sales inventory throughout the region and a market that continues to have an insatiable appetite for industrial property, the land and buildings at 7 Kapuni Grove, in the Kenepuru industrial area just off Broken Hill Road, represent opportunity for investors, owner-occupiers and developers.
The 5,839sqm industrial-zoned site currently supports 1,668sqm of circa-1980s high-stud buildings, configured as six individually unit-titled warehouse/workshops with functional two-level office and amenity blocks.
There is roller door access to the front of each unit and all six units have ample yard areas and car parking.
Further, an unsealed yard along the western boundary of the property remains largely underutilised and there is a bare land component at the rear of the property with consent in place to develop two, 237.5sqm units.
Andrew Smith of Bayleys Wellington Commercial team is marketing the property, which will be sold by tender closing 4pm, Tuesday 2nd June.
Having sold the property to the current owners – a group of local investors – in 2006, Smith said it’s time for a new owner to take the reins, optimise the rental returns, and ultimately, unlock the development potential inherent in the underutilised site.
“When looked at as a whole, the property in its current guise and with the existing lease structures, has opportunity written all over it,” he said.
“Based on current market rentals and the dynamics at play in the broader industrial sector, this property has untapped income and future upside.
“The leases for the existing three tenancies across the six units could be restructured to better reflect the credentials of the large property and then there’s the development opportunity to the rear of the site for a new owner to explore.”
Currently, the property returns a total net income of $116,468 per annum plus GST with existing leases having varying expiry dates out to 2023.
The three tenants on site are a mix of trade-based and service businesses.
Smith said as an add-value project, a buyer could take advantage of the strong rental market for industrial properties – particularly for those businesses who could leverage off a central location like Porirua with its streamlined access north and south.
“Porirua City Council is progressing with various infrastructural upgrades in the area equipping Porirua for identified growth and for the anticipated completion of the much-awaited Transmission Gully project,” said Smith.
“The Kapuni Grove property already has good access to the motorway, but there is work being done on the Kenepuru motorway ramps to link up with Transmission Gully and this is seen as having huge value to businesses in the wider area.
“Larger businesses with a consolidated presence here include PlaceMakers, Windsor Engineering, Interwaste and McKee Fehl Construction and, with residential growth being planned for, construction-related businesses are actively looking north of Wellington for a base.”