Vacancy within the industrial sector region-wide is minimal, with Lower Hutt and Porirua industrial property virtually at capacity.

A substantial 27,624sqm industrial site located in the heart of Porirua’s leading precinct, and having potential for redevelopment, is drawing interest from motivated buyers who recognise that the market is crying out for quality industrial space in core growth locations, according to Bayleys Wellington Commercial salespeople Mark Walker and Grant Young.

Billed as one of the last remaining large underdeveloped industrial properties in the Wellington region, 4-10 Mohuia Street represents significant opportunity in a severely constrained market, said Walker and Young.

The duo are marketing the property via a tender campaign, closing 4pm, Wednesday 20th July.

The sprawling 2.76-hectare flat site has multiple access points and its existing older buildings totalling 14,000sqm are home to 11 tenants on expiring leases.

The complex comprises six buildings constructed in two stages in the 1950s and 1980s, providing mixed-quality warehousing, manufacturing, and storage facilities with offices, amenities, generous parking, and yard areas.

The property is anchored by long-standing tenant Aspiring Walls, with other occupiers including Noel Leeming, Total Towing, Cliff Scott Engineering, and Awesome Bounce indoor playground.

The current net income from the property is $990,761 per annum which will rise to a passing net income of $1,080,761 per annum in September 2022.

Walker said while the entire property functions well in its current guise, it is clear that the site’s true value could be unlocked through redevelopment.

“It’s easy to see the potential that this site holds and the capacity to develop a market-leading industrial offering which would fly in today’s hamstrung environment,” he said.

“The anchor tenant Aspiring Walls has occupied the site for some time and now under new ownership, has indicated that they would consider a long-term lease in a remodelled building should the property be redeveloped.”

“There is real scope for a buyer to work through the underutilised areas and progressively reconfigure the site to tap into its upside.”

“With generous holding income in place, and with multiple access points off Mohuia Crescent and Gluepot Lane, it would be possible to work incrementally across the site.”

Walker said there is tangible and unsatisfied demand around the region for medium to large high-stud warehousing space with a good footprint and Porirua is a compelling location for proactive businesses.

“Particularly those operators that are leveraging the surge in eCommerce and have a requirement for last-mile delivery and just-in-case inventory storage.”

“Porirua’s city centre and Mega Centre retail park is just 300 metres northeast of the subject property, while access to State Highway 1 is only three minutes’ drive away via the new Kenepuru Drive on-ramp making Transmission Gully and Wellington's CBD super-accessible.”

Some of the existing buildings on the site are now dated and coming to the end of their practical cycle given the higher expectations of occupiers who increasingly seek clear-span, high-stud property for efficiencies, according to Young.

“Seismically, the buildings have ratings ranging from 55-75 percent new building standard as outlined in two IEP assessments dated November 2015 and November 2016, with the reports available to interested parties.”

“The main older lower-stud warehouse to the south of the site is predominantly occupied by longstanding tenant Aspiring Walls who have subleased part of their tenancy, while the newer higher-stud warehouse with six gabled sections is to the north of the site and houses most of the remaining tenants.”

“Generous yard and car parking areas are located on the south-eastern and north-western sections of the property and a proactive developer would see at a glance the intrinsic scope for a modern, purpose-built development.”

Adjacent to this site, the largely presold $40 million The Works Elsdon business park comprising 87 industrial units is under construction.

Notable tenants in the immediate area include J.H. Whittaker and Sons Limited (Whittaker’s chocolate), Online Security, Bunnings, PlaceMakers, Turners Cars, and Mitsubishi.

Click here for more information on the listing.