An A-grade property in Elsdon, Porirua purpose-built as warehouse storage for multi-national retailer Harvey Norman in 2007, has come to the market offering investors a compelling opportunity to secure a sizeable footprint of industrial land and buildings in one of the region’s growth nodes.
The 5,978sqm freehold site at 5 John Seddon Drive is adjacent to the Todd Park business complex, and its 2,379sqm tilt slab column-free high-stud warehouse building is in like-new condition.
The property includes a substantial sealed yard with 46 car parks, a concrete hardstand with canopy, streamlined vehicle manoeuvrability for delivery trucks and vans, along with a 1,000sqm parcel of land along the northern boundary with development potential.
Harvey Norman has lease liability across the bulk of the site until 2043, with the property returning a net passing income of $327,877 plus GST per annum.
Fraser Press and Simon Butler, Bayleys Wellington Commercial are marketing the property via a tender campaign, closing 4pm, Wednesday 20th July.
When all the fundamentals of the property are weighed up, Press said it’s hard to beat.
“I’d rate this as one of the top 20 industrial buildings in the Wellington region and the fact that there is also a significant component of undeveloped land not included in the current lease structure sweetens the deal.”
“The location and the building’s credentials clearly work well for the tenant Harvey Norman, with the secure 9.4-metre minimum stud warehouse serving as a distribution hub for its store in the Porirua Mega Centre around 1.5km away.”
“The relatively low office ratio allows operational functionality by optimising the warehousing component and the site has excellent access to the updated road network creating efficiencies for the tenant.”
Press said the property is owned by a private investor and A-grade industrial assets of this scale rarely come to the open market in the Porirua catchment.
“It’s a straightforward, clean investment proposition with simple underlying fundamentals of quality construction, seismic rating of 100 percent new building standard, a proven international tenant that has been in occupation since the property was built, and a clear commitment to the site going forward.”
“Then when you factor in the 1,000sqm of land that is not part of the existing lease, industrial investments don’t come much better than this.”
That undeveloped parcel of land to the northern aspect of the property has a proposed building development of 386sqm which Press said would have serious traction in the leasing market once completed.
“Bayleys data shows Porirua to have minimal vacancy in the industrial arena – sitting at well below 1-percent and blowing 10-year long-run trends out of the water.”
“The operational efficiencies that Porirua brings to the industrial logistics and distribution table are indisputable.”
“The Elsdon industrial precinct offers convenient access to the updated State Highway network which has positioned Porirua City within a 15-minute drive of other major Wellington centres.”
“The Transmission Gully on-ramp is just 5-minutes’ drive away meaning the Harvey Norman operation can service a large catchment area easily and efficiently.”
ASX-listed and Australian-based retailer Harvey Norman was founded in 1961 and there are 43 Harvey Norman company-operated stores in New Zealand.