The big office and warehouse property for sale in Seaview, Lower Hutt.
A large office and warehouse property with a long-term lease in place to national logistics operator Cardinal Logistics is for sale in Wellington’s popular Seaview industrial area.
“Competition for space here is strong, especially among logistics and distribution companies which require good transport connections,” says Tim Julian of Colliers International who, with colleagues Andrew Hooper and Greg Goldfinch, is marketing 195 Gracefield Rd, Lower Hutt, for sale by deadline private treaty closing on November 1.
“Seaview is a prime spot that is experiencing particularly high demand from industrial occupiers,” Julian says. “And Gracefield Rd is highly sought-after among businesses owing to its easy access to the motorway and port.”
The large property has a building area of 9714sq m and occupies 1.4ha freehold site.
“It provides functional, multi-purpose industrial accommodation with excellent truck access through the property,” Hooper says.
“This is an excellent facility with ample warehouse space and a compact office component. It has several features making it ideal for distribution and logistics occupiers, including high stud warehousing and a fully covered, drive-through canopy area.”
The main high-stud warehouse of 7531sq m is split into two parts by the drive-through canopy, which extends right through the site and provides access to both sides of the warehouse via roller doors. The modern building has offices and amenities over two levels and a warehouse stud height of 8.5m.
An older building to the eastern side of the complex provides a further 1201sq m of warehouse space with direct access into the new warehouse, and additional offices. Also on the property are 32 car parks.
The tenant, Cardinal Logistics is a New Zealand owned and operated business that was founded in 1992 and is now one of the country’s leading and fastest-growing logistics companies, specialising in distribution and storage solutions. The company focuses on grocery products and other consumer goods and also has warehouses in Auckland and Christchurch.
Hooper says the lease to Cardinal Logistics extends to 2026 and will generate $1,119,450 in net annual rental income from November 2.
“This property generates a solid income stream which will be appealing to investors looking to increase their holdings in commercial property. Demand from investors in the commercial property market is very strong at the moment, which has been largely driven by a low bank interest rate environment.”
Julian says the building’s size means likely buyers include listed property companies, real estate investment trusts, syndicators and larger passive investors.
“The long lease, modern building and prime location mean this property will appeal to buyers based around New Zealand looking for sizable, functional and well-located assets to further diversify their portfolios.”
The property is located 21km from Wellington Airport, 6km from State Highway 2 and 15km from CentrePort Wellington.
“Seaview is a very popular transport and distribution hub that has undergone some modernisation recently,” says Julian.
“Several older buildings are currently being refurbished to provide industrial accommodation that better meets modern requirements. With many tenants reluctant to move further up the Hutt Valley, further refurbishment of older stock is likely in the precinct as tenants and owner occupiers compete for limited space in the Seaview precinct.”
Higher demand for industrial space in Wellington has pushed the vacancy rate to a record low 3.6 per cent, according to Colliers International’s latest survey. There is now less than 100,000sq m of industrial space available – well below the 9 per cent vacancy recorded in late 2012.