Sale, leaseback in capital locale
The land and buildings of a large industrial property in the Wellington suburb of Grenada North, home to a blue-chip tenant, are for sale.
21-35 Takapu Rd 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 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 more than 20 years. The new lease is for a term of 10 years (plus rights of renewal) indicating the firm’s commitment to the location.
Total net annual rental income 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.
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 are marketing the property via deadline private treaty closing at 2pm, Wednesday March 6, unless sold prior.
The key function of the property is yard, while improvements on the site include an office building, highbay workshop with attached low-bay workshop, a steel-clad store shed and a canopy within the yard area.
Goldfinch 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 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.
Julian 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.