Big Save sets up for the long haul in Wainuiomata
BIG SAVE FURNITURE is setting up a new national distribution centre in the former Feltex Carpet factory in Wainuiomata.
The one hectare factory which stands on a 1.9ha site at 7 Waiu St was bought by Big Save off mortgagee Guardian Trust.
Big Save managing director Tom McKimm was not prepared to say what he paid for the property but it is understood to have sold for under $2 million.
‘‘It was a good value purchase but we have to do some significant upgrades.’’
This included concreting the yards to put down container pads, upgrading the roof and stormwater system, installing fibre optics and stripping out lots of internal walls.
McKimm said it would move its present base at Todd Park, Porirua to the new premises which were just over the hill in Wainuiomata.
It was cheaper space, would give them another 2000 square metres and it would also allow them to add another 5000sqm which they planned to do over the next few years.
He expected they would spend another $4m-$5m over the next few years.
McKimm said they looked at various locations around Wellington before settling on Wainuiomata.
‘‘Obviously it was a good value property. That was a starting point and our local domestic trucking contractors, Central Movers, were based in Wainuiomata.’’
It was also very close to Seaview.
‘‘People think Wainuiomata is out on a limb but we did a lot of research and we were looking for a big facility that was within 20 minutes of everywhere in Wellington.’’
Wainuiomata also had a good employment base, was cost effective and had well-priced industrial property.
‘‘We see Wainuiomata as an exciting growth area for logistics as there are cost effective large buildings and great infrastructure already in place.’’
He compared the deal to its purchase of the former Rothmans tobacco factory in Napier which now houses more than 45 businesses employing more than 600 staff. Lower Hutt Mayor Ray Wallace said Big Save’s move was great news.
‘‘The decision is a vote of confidence for Wainuiomata and will boost business activity in the valley. The distribution centre will employ between 15 and 20 people.’’
The Wainuiomata centre should be fully operational by late October.
The first Big Save shop opened in Paraparaumu in 1973 and it now has 22 branches nationwide serviced by distribution centres in Napier and Porirua.
Feltex closed the Wainuiomata factory about a decade ago and its last owner was Christchurch owned Waiu Industrial Estate, a company that went into receivership in 2010.
McKimm said Jenner Panel and Paint, which occupies part of the factory building, would be staying on as a tenant.