Electric offering at Tesla facility
A new multi-purpose building in Wellington’s low-vacancy Ngauranga precinct will be the first New Zealand tenancy for the world’s largest electric vehicle manufacturer, Tesla, presenting a powerful opportunity for investors.
The purpose-built facility on 9583sq m of freehold land at 1 Malvern Rd on the edge of Wellington’s metropolitan industrial belt is being marketed as a purposebuilt but generic showroom, office and workshop/warehouse facility.
Bayleys Wellington director Fraser Press says the property is offered to the market at a time of high demand for industrial premises, particularly those with strong tenant covenants in important locations.
“Strategically positioned near key transport links and catchments on the metropolitan fringe of central Wellington, the Ngauranga industrial precinct accommodates some of the region’s largest logistics and distribution sector players.
“While presenting as a rare offering in a location with persistently low vacancy rates, investors will see the enormous opportunity to secure a brand-new, modern building delivered by a renowned developer, purpose-built for a sought-after global occupier who is leading the charge in electric vehicle sales and delivery.”
Press says Tesla has undertaken a long-term lease from the date of the practical completion, which is estimated late next year, with one further eight-year right of renewal.
The property will generate an annual net rent of $1.323 million plus outgoings and GST with lease provisions for market reviews on renewal and fixed annual growth.
Press is marketing the property with Bayleys Auckland director Lloyd Budd by tender closing on Wednesday, 30 November.
Budd says the new owner will benefit from significant value uplift upon completion, as Tesla will be making substantial investments into a bespoke fit-out to ensure the premises meets its high standard of operational needs.
The 3554sq m floorplan is a mix of service area, showroom and offices including a mezzanine with 71 sealed carparks.
“As part of the new-build process, the new owner will enjoy a brandnew facility with the standard warranties and modern elements, including a seismic assessment of
100 per cent NBS.”
Budd says the property is being developed by Gibbons Co, a privately-owned luxury developer backed by more than $1 billion in development sales across the Auckland and Wellington regions.
“Recent projects that speak to the quality of the developers’ offerings include the Countdown supermarket in Auckland’s Herne Bay, the nine-level commercial Customhouse Quay premises, and a considered refurbishment of the
120-year-old Hummingbird House in central Wellington.”
Budd says the site was previously home to appliance and furniture retailer L.V. Martin & Son, more recently known as Smith City. However, buildings were at the end of their lifespan and have been demolished and the site cleared, awaiting development.
Budd says fully compliant resource consent for the project has been lodged. Stage one building consent for earthworks and drainage is expected later this month.
“With broad-based construction pressures easing, the premises represents an unrivalled opportunity for the New Zealand market. Seldom have we ever had such state-of-theart construction bolstered by a longterm lease to one of the world’s most sought-after occupiers.
“Furthermore, a pivotal location on the Wellington roading network, with proximity to State Highway 1, the Hutt Valley and Wellington’s CBD, is further underpinned by exposure to significant passing vehicle traffic, which boosts the property’s credentials and capacity for value uplift.”