Bankable investment in Wainuiomata

Bankable investment in Wainuiomata

6 Queen Street, Wainuiomata, Lower Hutt. Sold on 11th May 2017.

The Property
- 186m² freehold property on Wainuiomata’s main retail strip
- 290m² two-storey building with rear access and two car parks
- Potential net income of around $29,000 + GST per annum
- Assessed at 77 percent NBS
- Previously occupied long-term by Westpac Bank

Quick Look

- National Total Property marketing campaign with auction method of sale
- A pre-auction offer of $280,000 was made
- SOLD under the hammer for $440,000 with vacant possession
- 49 direct enquiries made to the agents and substantial interest from listing sites;,,
- Five active bidders on auction day with 80 bids recorded

The Story

The standalone, two-storey retail and office building has been well-maintained and stands out among its neighbours on Wainuiomata’s Queen Street.

Westpac Bank occupied the building for many years before closing its Wainuiomata branch in 2016. Westpac has a six-month lease for the ATM and has indicated a willingness to make longer term arrangements with the new owner of the property.

Retail banking has dictated the layout of the ground floor although this is easily adapted to other uses, while the first floor is currently configured as an office space.

Agents Paul Cudby and Andrew Smith of Bayleys Wellington say the assessed seismic rating of 77% bolstered buyer interest in the property as it makes the building inherently “bankable”.

The new owner of the property lives locally and, while had initially intended being an owner-occupier, now plans to lease the building out.

Recent news that Wainuiomata’s ailing shopping mall has been bought by Progressive Enterprises – owner of the Countdown supermarket chain – brings new optimism to the town and is expected to strengthen commercial opportunities.

Vendor Comment

Wellington investor Mars Unka owned the Queen Street property since 1991 and says it has been a good long-term passive investment.

“Having Westpac as a tenant meant that the property was well-maintained and underwent regular interior upgrades,” explains Mars.

“Over the years I kept the exterior up to scratch and other than that, I was hands-off.”

“When Westpac advised that they were closing their Wainuiomata branch, I decided that the time was right for me to sell the property and also exit the Wainuiomata market opening the door for someone else to own and occupy the building or find new tenants.”

Mars says he was very pleased with the final price achieved in the auction room.

“The toe-to-toe bidding in the latter stages of the auction was great to observe.”

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