A big and fully-tenanted industrial park encompassing 10 main buildings with 12 tenants and extensive yard space is for sale in Seaview, Lower Hutt - one of the Wellington region's most in-demand industrial precincts.
Known as Port Domain, the industrial park at 2-30 Port Rd, is adjacent to the main Seaview roundabout, and covers about 29,104sq m of prime industrial real estate. The land is held in four titles, has three street frontages and many of the buildings have been recently refurbished inside and out.
The industrial park has solid credentials and its sale represents an excellent split-risk investment opportunity, says Grant Young of Bayleys Wellington who, with colleague Mark Hourigan, is marketing Port Domain for sale by tender closing at 4pm on April 11.
Young says the property has a net lettable building area of 18,597sq m and generates a net annual income of $1,465,162.
It is anchored by NZ Tube Mills, Tile Trends and Bramco Granite and Marble. Between them, these three businesses occupy around 70 per cent of the total available area. The nine other tenants are predominantly industrial and warehouse users.
"With a dozen tenants, there's a spread of risk for a new owner and a weighted average lease term of around five years," says Young.
"The anchor tenants have committed to lease terms of between seven and 12 years, so their loyalty to the site is clear."
The buildings comprise steel portal-framed industrial warehouses and workshops of varying stud heights and sizes, with some incorporating office and amenity areas. Many of the warehouses have overhead travelling gantry cranes which are all owned by the landlord, with a total of 11 cranes within the business park.
Young says a number of large-scale industrial businesses have recently secured a presence in the Seaview area including Flooring Solutions, King Tyres, Allied Pickford and Linfox.
"It's a complete offering as it currently stands, however there could be future redevelopment potential given the flexible General Business zoning," he says.
"This zoning is one of the more relaxed industrial zonings in Lower Hutt in terms of allowing for a mix of certain commercial activities which support the retail function of central and suburban commercial centres.
"Potentially, a new owner could remodel some of the buildings to showroom use, for example, which could see a higher return on investment. Very few industrial properties have this zoning in Seaview."
New figures released by Bayleys Research show that the Seaview industrial precinct – which is the largest in the region – has a vacancy rate of just 2.5 per cent, the second-lowest in the wider Wellington region, with only Grenada having slightly lower vacancy levels at the last count.
The report says a thriving regional economy and a well-performing industrial sector is underpinning the low vacancy in the Seaview area, where demand for industrial property from both a sale and leasing perspective remains strong, while availability is scarce.