Two adjoining industrial properties for sale at the northern entrance to New Plymouth, provide the opportunity to transform a combined 15,661sq m land area into a major development.
Together, they could house a modern industrial park, made up of small-to-medium-sized trade and warehousing businesses. Subject to planning consent they could also be redeveloped into a retail or hospitality hub.
The properties, at 686 and 690-694 Devon Rd, are being marketed for sale by Bayleys Taranaki sales agent Alan Johnston, and feature in the latest issue of Bayleys' Total Property portfolio magazine.
"They're an 11-minute drive from New Plymouth CBD and a nine-minute drive from its airport and well placed to benefit from recent growth in Taranaki's population and economy," Johnston says.
Of the two, 686 Devon Rd has an asking price of $2.6m, while tenders close for 690-694 Devon Road on October 26, unless the property is sold earlier.
Johnston says 686 Devon Rd - home to truck repair firm McCurdy Engineering Ltd for 20 years - has 1921sq m of lettable floor area on 6395sq m of land.
The building comprises two high-stud workshops covering 1280sq m; a 137sq m mezzanine featuring a staffroom, office and storage rooms; 420sq m of ground floor offices and amenities and an 84sq m canopy.
McCurdy Engineering is moving to a new site, but has a 12-month leaseback on the property, with two six-month rights of renewal.
"With the net rental on the property $216,000 a year, the leaseback arrangement provides buyers with a generous holding income while they develop their own plans for the site," Johnston says.
The other site at 690-694 Devon Rd is being sold vacant and has lettable floor area of 2026sq m on 9266sq m of land. The buildings comprise a modern high-stud warehouse alongside an older medium-stud warehouse with offices and amenities. The site also has an extensive car park with 22 marked bays and a yard to the west which provides access to the site.
Johnston says both properties are likely to interest developers looking to construct modern showroom, trade or industrial premises. Individually, they could easily accommodate a large warehouse and trade office. But a change in planning consent could open the sites up to retail and/or hospitality opportunities.
Johnston says Devon Rd was once a popular area for heavy industrial properties, but more recently it has become a destination for service industries and shopping complexes.
"The properties are already located directly opposite the popular Valley Mega Centre complex - a bulk retail development home to big national and international brands - including Harvey Norman, Countdown, Mitre 10 Mega, Warehouse Stationery and Noel Leeming.
"The surrounding area has also seen massive growth in residential developments, which could support new businesses.
"Subject to planning consent, either property could be transformed into a convenience retail hub, offering small-to-medium sized hospitality and retail businesses, such as sushi bars, cafes and pharmacies, with fuel station. Their easy access and exposure to some 17,000 vehicles a day - including traffic to and from the airport - could also make them an ideal location fast food drive-through."
Johnston believes these properties would represent a more compelling prospect when combined.
"The combined site could easily house a business or retail park, made up of small to medium-sized units," he says.
He says demand for new commercial and industrial space has elicited a strong response from the development sector over recent months.
A third industrial property at the northern entrance of New Plymouth: 29-37 Paraite Rd, which is within 3.3km of the Devon Rd properties, is to be auctioned on October 18.
The dual access 10,840sq m property, which houses a 1983sq m warehouse with refurbished offices, generates $202,497 a year in net rent. The tenant, a well-regarded international company, has a seven-year lease, commenced in 2012, with three one-year rights of renewal.
The building comprises 230sq m modern offices and amenities, four high stud warehouse/workshop areas covering 1362sq m; a 170sq m mezzanine; and two canopies totalling 621sq m.
"The location is on the western end of the Bell Block industrial estate with a wide frontage to Paraite Road and a right of way entrance/exit to Connett Rd. With a strong, long-term tenant in place, it will appeal to buyers looking for a hands-off investment in an in-demand asset class," says Johnston.