High-yield office investment in Lower Hutt

A high-profile Lower Hutt office building fully leased to a provider of cutting-edge fundraising solutions and a leading Maōri cultural organisation is up for sale.

The two-level building in Waiwhetu enjoys exposure to busy traffic on main arterial Wainui Road.

With established tenants on long-term leases, and built-in rental growth, it is being marketed by Bayleys Real Estate as an attractive opportunity for buyers seeking a high-yielding commercial property investment.

The first floor has, for 20 years been leased to Kiwifirst NZ. Established in 1993, Kiwifirst offers charities a full-service telephone and email based fundraising solution using state-of-the-art software and secure payment technology. It occupies its approximately 300-square-metre premises, with 12 car parks, on a current lease that runs through to 2028 with a further five-year right of renewal.

The similar sized ground-floor office, with four car parks, is home to the Wellington Māori Cultural Society (WMCS). It occupies the premises on a lease that runs to 2029 with a further five-year right of renewal.

WMCS promotes and supports Māori cultural practices, language and events. It organises the Wellington Regional kapa haka festivals and supports Māori cultural clubs across the region.

The two leases generate a combined net rental return of $116,786 plus outgoings and GST per annum, and provide for market rent reviews every two and three years, respectively.

The freehold land and building at 44 Wainui Road, Waiwhetu, Lower Hutt, are being offered for sale through Andrew Smith and Oliver Hourigan of Bayleys Wellington Commercial.

The sale is by way of a tender closing on Wednesday 10 December.

The approximately 600-square-metre steel portal frame building was built in two stages – the ground floor in 1963 and the upper floor in 1987. This is underpinned by some 1,158 square metres of land with well-appointed on-site parking and rear yard areas.

Smith said each of the two self-contained, full-floor office tenancies offered a functional layout and efficient floor plate, suitable for a wide range of professional occupiers.

“A recent detailed seismic assessment provides peace of mind, with a rating of 70 percent of new building standard, making this a future-proof investment in a tightly held commercial area,” Smith said.

General Business zoning under Lower Hutt’s district plan enables wide-ranging uses from light industry, to warehousing and storage, trade sales, car yards and technical workshops, with a maximum building height of 12 metres.

Hourigan said the Wainui Road property benefited from being in a thriving precinct with excellent visibility, strong traffic flows and easy access to key transport routes.

“The building fronts the main arterial Wainui Road, offering excellent exposure on the northern fringe of the Gracefield industrial precinct. It sits within a mixed-use area handy to both residential amenity and commercial and industrial infrastructure.

“The surrounding area offers plenty of services, including a FreshChoice supermarket within convenient walking distance.

“Immediately in front of the property are bus stops in both directions, and within easy walking distance is the Woburn bus and railway station which provides frequent commuter services into central Wellington and across the Hutt Valley,” Hourigan said.