A sizeable freehold landholding accumulated over two generations in the Lower Hutt suburb of Moerā has been attracting a steady stream of enquiry since launching to the market in the latest edition of Bayleys’ Total Property portfolio.

With a total land area of 3,315sqm held in five titles, a combined building area of 1,645.8sqm across three buildings, and a mix of leased and vacant space, the properties can be purchased individually, in combination, or as one package.

This provides flexibility and options for owner-occupiers, add-value investors, or development entities, with rental upside and future redevelopment potential to be unlocked according to Paul Cudby and Ethan Hourigan of Bayleys Wellington Commercial, who are taking the properties through a tender campaign closing Wednesday 21st May.

The properties were acquired incrementally from the 1950s by the Nicolaou family. Well-known Moerā resident the (late) Peter Nicolaou was a philanthropic Greek Cypriot shoemaker who emigrated to Wellington in the 1950s. Having learned the art of shoemaking in Cyprus, Peter initially worked at the Hannah's factory in Wellington city before purchasing a building for his own workshop in Moerā in 1954 where he earned the affectionate title “Moerā Pete for comfortable feet”. The Moerā workshop/store was the first of several Nicolaou family-owned and operated shops to open across the Hutt Valley and Wellington.

127-137 Randwick Road comprises eight shops built in the 1970s. Two of the retail tenancies are occupied by longstanding takeaway business Blue Island Seafoods, one by Moerā Bakery, and two by Moerā Supermart which includes an ATM for ANZ. The remaining three tenancies are walk-in ready and the building is at 85 percent new building standard (NBS).

139-141 Randwick Road is a two-storey 1960s building at 40 percent NBS which is near fully leased, having just a small area on the ground floor vacant. This building is occupied by Moerā Pharmacy, the administrative office for Te Kakano O Te Aroha Marae, and graphic design studio Thinkspace.

The third building at 149-151 Randwick Road comprises a 418sqm two-storey 1970s structure previously occupied by boutique dairy product company, Zany Zeus but now vacant and presented as a shell. This building has a 60 percent NBS rating.

There is rear right-of-way access to the buildings at the south end and a wholly owned driveway toward the northern end.

Cudby says a property of this scale is a rare thing in Moerā, which is a small suburb with a strong sense of community and a loyal customer base.

“It’s a significant aggregated site that has been a legacy hold for the Nicolaou family, but which is now available for a new owner, or owners, to take forward.

“There’s considerable rental upside to be gained through re-leasing the vacant space, and tenant management could either be outsourced, or a new owner could get stuck in themselves. The property returns annual holding income of $188,58 gross plus GST, with rental upside to be unlocked from the vacant space.

“Assessments suggest that if fully leased, the property would have potential annual net income of $220,935 plus GST, and with this stretch of Randwick Road seeing 32,000 vehicles passing daily, it’s a high-profile location for businesses.”

The broader Lower Hutt market is seeing good demand for short-term leasing opportunities in suburban locations, with Cudby saying pop-up shops and start-ups are taking advantage of flexible lease terms.

“This would benefit a purchaser looking to the future and considering a staged redevelopment project across part or all of the site given the favourable Special Commercial (Suburban Mixed-Use) zoning.

“It’s a broad designation with a 23m height limit that allows for high-density residential accommodation above the ground floor and retail/commercial at street level.

“The Moerā area has capacity and demand for more housing so a new owner could leverage holding income while planning out a staged redevelopment across the site.”

Moerā has regular bus services, and nearby Woburn Station offers rail connectivity north and south on the Hutt Valley line, and north on the Wairapapa line.

Hourigan says the well-connected suburb is seeing growth and change which supports redevelopment of the Randwick Road site.

“The new Moerā Neighbourhood Hub is now open on the old Moerā library site providing a modern asset for the community. As part of this regeneration project, the Moerā Reserve to the north end of the new hub is also being revamped.

“Suburbs with strong amenity attract new residents and Moerā is positioning itself well in the Lower Hutt market.”