With industrial vacancy sitting at sub-three percent in the Porirua precinct, and a region-wide shortage of decent-sized warehousing space, investors have been struggling to acquire property in Wellington’s strongest-performing sector.
Brokers selling a recently-strengthened and fully-leased generic warehouse with offices and a showroom on a 2,900sqm site in Porirua’s preferred industrial zone said they are expecting robust interest from buyers who have been faced with minimal opportunity to buy industrial property in recent years.
The property at 5 Mohuia Crescent, in Porirua’s Elsdon industrial precinct, has been home to established joinery manufacturer, supplier, and installer Wellington Windows & Doors, for more than a decade.
There are six years remaining on the company’s current net lease and two, four-year rights of renewal, with the property returning net annual income of $292,808 plus GST, with annual review to CPI with a minimum two percent annual increase, and market rent reviews on renewal dates.
The low-maintenance standalone warehouse building with wider street frontage and triple roller doors providing access to the 23-bay front carpark area, was constructed in the 1970s as a 4.5m-stud factory workshop.
It underwent a significant refurbishment in 2008 to provide a large ground floor showroom, reception, office and amenity areas, the roof was replaced in 2013, the building has since been strengthened and offers around 2,159sqm of space.
The first floor contains a boardroom overlooking the carpark, dual kitchens, gendered bathrooms, multiple storage areas and a secondary meeting or breakout room.
The property will be sold by tender, closing 4pm, Wednesday 28th June via Grant Young, Mark Hourigan, and Simon Butler of Bayleys Wellington Commercial.
Young said while the building is a great fit for the current tenant, and the existing lease still has six years to run, the property would have broad appeal to a range of future occupiers given the functionality, location and flexibility it provides.
“It’s ideally suited to Wellington Windows & Doors as it consolidates their operations on one site,” said Young.
“In the future, with the installation of a firewall, the building could be divided longways into two separate tenancies, giving roller door access and dedicated yard area to dual occupiers.
“That degree of flexibility additionally underscores the already strong value equation that this property offers the market.”
With the current tenant on a net lease and paying all outgoings, Young said the low-maintenance and well-maintained property represents a passive investment opportunity in a catchment that’s benefitted significantly from recent infrastructure improvements.
“The opening of Transmission Gully has really accelerated interest in Porirua as a business location, with this particular property being less than 3km from the new Kenepuru Drive on-ramp making access to State Highway 1 streamlined and efficient.
“For a business that services the whole region, this location has tangible operational benefits and efficiencies.”
The Porirua city centre and bulk retail park is 300m to the northeast of the property, with Wellington CBD a 20-minute drive away.
Adjacent to the site is the under-construction $40m The Works Elsdon industrial complex, while other surrounding buildings comprise a mix of low to medium-stud warehouses utilised for manufacturing and storage, with notable tenants including Whittakers, Online Security, Bunnings, Placemakers, Turners, and Mitsubishi.