The land and buildings of a large industrial property in the Wellington suburb of Grenada North that is home to a blue-chip tenant are being presented to the market for sale.
21-35 Takapu Road, Grenada North has 24,764sq m of land area and is held in two freehold titles. The property is zoned Business 2 under the operative Wellington City District Plan.
The property is being offered to the market as a sale and leaseback. Brian Perry Civil, a 100 per cent subsidiary of Fletcher Building, is the tenant and will begin a new lease on settlement.
Fletchers have been on the site for in excess of 20 years. The new lease is for a term of 10 years (plus rights of renewal) indicating the firm’s commitment to the location.
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The total net annual rental income from the property under the new lease will be $767,130 plus GST. The lease provides for annual rental growth of 3 per cent plus future market reviews.
Sitting approximately 15km north of Wellington’s CBD, Grenada North has become a highly sought-after industrial location due to its accessibility from the motorway network and central position within the region. The key commercial nodes of Seaview, Lower Hutt, and Upper Hutt can be reached within 30 minutes.
Currently there is no vacant industrial property within the Grenada North precinct, according to the latest research from Colliers.
Colliers Brokers Greg Goldfinch, Paul Higgins, Tim Julian, and Kieran Lennon have been exclusively appointed to market the property for sale via deadline private treaty closing at 2pm on Wednesday 6 March, unless sold prior.
The key function of the property is yard, while improvements on the site include an office building, high bay workshop with attached low bay workshop, a steel clad store shed, and a canopy located within the yard area.
Goldfinch, National Director of Industrial at Colliers, says this offering has a strong tenant covenant that will be appealing for buyers.
“Brian Perry Civil’s parent company Fletcher Building is an NZX-listed firm, and they are considered a premier occupant,” Goldfinch says.
“Founded in the Waikato in 1954 and purchased by Fletcher Building in 2007, Brian Perry Civil is one of New Zealand’s pre-eminent civil contractors delivering ongoing large projects, including bridge building and in-ground services.”
Higgins, Director of Industrial at Colliers, says the property is surrounded by established operators who have chosen to set up in Grenada North.
“Well-known commercial firms such as Foodstuffs, Woolworths, and Metro Performance Glass are all in the wider precinct, exemplifying the desirable credentials of the area,” Higgins says.
“The subject property enjoys significant street exposure to Bing Lucas Drive and Takapu Road and has multiple access points providing convenience for the occupants.”
Julian, Associate Director of Industrial at Colliers Wellington, says the combination of strong demand levels, tight market conditions, and an inflationary environment led to robust rental growth in the Wellington industrial market in 2023.
“The industrial property market remains attractive for investors due to the continued demand for space that is seen in New Zealand’s main centres,” Julian says.
“Research from Colliers notes the overall vacancy rate for industrial property in Wellington is only 1.2 per cent and this figure has now held below 2.5 per cent since 2017.”
Lennon, Industrial Sales and Leasing Broker at Colliers, says the subject property has the makings of a highly appealing passive investment opportunity.
“The fact Grenada North has no vacant industrial premises underscores the strong demand for space in this keenly sought area. Investors now have the chance to acquire a highly functional property that has served the existing occupants well,” Lennon says.
“Investment opportunities that are underpinned by such a strong tenant covenant rarely come to the open market in Wellington and we encourage all interested parties to contact us immediately.
“With very few passive industrial investments offered to the market since 2021, and the prospect of falling interest rates later this year and in 2025, we anticipate strong interest in this property from astute investors.”
- Supplied by Colliers
