Four lots form one prime Kilbirnie corner site

The prime corner redevelopment site occupied by four houses, is at bottom right foreground, opposite Pak'nSave. Photo / Supplied

In Wellington's eastern suburb of Kilbirnie, a prime 1317sq m corner redevelopment site occupied by four residential properties, has been placed on the market.

"The four properties at 2-4 Onepu Rd and 66-70 Rongotai Rd will be sold as one lot," says Grant Young of Bayleys Wellington who, with colleague Mark Sherlock, is selling the strategic site by tenders closing at 4pm on Wednesday May 15.

Young says the residences, with a collective floor area of around 590sq m, have a combined land value across the four individual titles of $3,130,000, and are all leased with six separate periodic tenancies in place.

"They are zoned 'Centre' by Wellington City Council which opens the door to a commercial redevelopment," he says.

"The council has identified Kilbirnie as a sub-regional growth centre, with the zoning rules allowing for flexible development options. This sale therefore presents a rare opportunity for property developers or a well-resourced owner-occupier to get a solid foothold in this fast evolving suburb."

Young says the four properties have an excellent gross holding income of $141,860 which would enable a developer or owner-occupier to consolidate plans and proceed with confidence through due process while benefiting from the regular cashflow.

"This is a proven location with heavyweights in the neighbourhood like Pak'nSave - which is directly across the road - Countdown, ANZ, KFC and Warehouse Stationery.

"The site's credentials make it suitable for bulk retail, a retail precinct, office development, mixed-use with retail at street level and apartment living above – or a fast food operation," Young says.

"Under Kilbirnie's Centre zoning, buildings up to 12m in height are allowed and it's understood that there would be discretion to build to 18m, meaning a mixed-use development could take advantage of the air space to optimise the site coverage footprint."

Sherlock says a basic scheme plan for the site has been developed by Millage Architects showing a five-level development with ground floor retail and 32 apartments above. "The usual Council consent processes would need to be initiated for approval of this scheme plan," he says.

The property at 66 Rongotai Road comprises a bungalow configured as a one-bedroom flat and a two-bedroom flat plus a single garage, while 70 Rongotai Road is an early 1900s' weatherboard four-bedroom bungalow with four off-street car parks.

At 2 Onepu Rd a weatherboard bungalow has recently been converted back to residential accommodation from commercial use and comprises a four-bedroom flat with car parking at the rear plus a garage. A weatherboard bungalow at 4 Onepu Rd has four-bedroom accommodation with a one-bedroom flat and a storage shed.

"These houses could be easily relocated leaving a flat, versatile site as a blank development canvas," says Sherlock.

"Kilbirnie is a tightly-held suburban centre servicing the local suburbs with a mix of traditional retailing on Bay Road and destination-type retailing on Onepu and Rongotai Rds. The high-profile businesses that neighbour this corner property are clear evidence of the popularity and viability of the location.

"The suburb is well-connected, being on the main bus routes to the Wellington CBD and is close to the airport.

"Given the Council's desire to see Kilbirnie become a regionally-significant suburban centre, we expect to see strong interest from forward-thinking developers and larger owner-occupier buyers," Sherlock says.

"The vendor is a Wellington-based property entity which has a substantial commercial and industrial property portfolio in the capital and elsewhere in New Zealand. A rebalancing of its portfolio has initiated the sale of the Kilbirnie offering."