Tawa Industrial Opportunity Stands Out In Heated Market

A fully-leased premium industrial complex with a national tenant covenant, favourable lease terms and building quality plus location on its side, has been placed on the market for sale.

The landholding is held in two titles, spanning 92-96 Main Road and 14 Tawa Street in the suburb of Tawa with a land area of 6,247sqm.

The buildings have a total footprint of 4,133sqm and the entire property is leased long-term to Aquaheat New Zealand, one of the country’s leading HVAC/mechanical services contractors with branches in Auckland, Whakatane, Wellington, Christchurch, Queenstown and Fiji.

Aquaheat is a member of the Horizon Energy Group that is 100 percent owned by the Trust Horizon (formerly Eastern Bay Energy Trust), a leading national infrastructure provider which operates across multiple industries.

Aquaheat New Zealand Limited entered into a new eight-year lease on 1st October 2019 and has a further two, four-year rights of renewal with a final expiry date of 30th September 2035.

The property returns a net income of $485,000 per annum plus GST with annual reviews benchmarked to CPI providing rental growth, and the tenant pays all outgoings.

Fraser Press and Simon Butler of Bayleys Wellington Commercial are marketing the industrial investment opportunity, with tenders closing 4pm, Wednesday 16th March.

Press said demand for property in the industrial sector continues unabated, with stock levels very low and occupiers constrained by a lack of choice.

“Every industrial precinct across the region is chocka, so this standalone offering would give an investor traction in the industrial market, underpinned by the fact that the property is held in two separate titles offering potential for subdivision down the track,” he said.

“Look at what you’re getting for your money here – a significant landholding, great built infrastructure, a committed tenant and a location close to main arterials.

“Aquaheat has been on-site for a long time so the property is very well-set up for their business and in reality, it would be difficult to replicate this footprint elsewhere in the region.”

The complex includes a modern two-storey administration building with 777sqm of offices and common areas that are well-presented and comprise a mix of individual and open-plan spaces, plus staff amenities including a café and car parking area.

The sheet metal factory comprises 738sqm of high-stud warehousing, with 489sqm of low-stud workshop space underneath an equivalent mezzanine with storage, offices and amenities, and there is a cafeteria fronting the main road.

The engineering workshop and storage areas to the rear of the complex feature a mainly high-stud 1,160sqm warehouse, with generous mezzanine and equivalent low-stud warehouse, and there is also a yard area of approximately 700sqm on a separate title with frontage onto Tawa Street.

The buildings were originally constructed between 1960 -1995 and last refurbished in 2019. All structures have been recently strengthened to an NBS rating of 67-80 percent new building standard.

Press said while the property is viewed as an affordable option in the current market, he’s not going to speculate on the likely yield.

“Let’s leave the market to determine that – but suffice to say, it’ll be better than money in the bank.”

The property has Business 2 zoning which allows for industrial activities such as warehousing, manufacturing and commercial services.

The Aquaheat complex holds pole position on the western side of Main Road, at the northern end of Tawa’s industrial strip with Press saying Tawa has emerged as a popular industrial precinct.

“The nearby new-build industrial business park Tākapu Rise is nearly 90 percent sold down with both owner-occupiers and investors seizing the chance to leverage off the location with Transmission Gully eventually opening up travel efficiencies,” he said.

“The Aquaheat property has excellent exposure onto the main thoroughfare between Tawa and Porirua and is positioned between Main Road and the Kapiti Link train line, with access to the complex from either Main Road or via Tawa Street to the northern end of the property.

“Held in two titles but being sold as one parcel, gives a new owner the ability to capitalise on the current healthy income and lease term while retaining the possibility of subdivision when the time is right.”

Wellington CBD is a 15 minute drive to the south, and the impending Transmission Gully on-ramp is within a five minute drive creating streamlined access to Kāpiti, Eastern Porirua and the Hutt Valley.

Click here for more information on the listing.

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