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News Release

Wellington

Kenepuru Drive property sold to Council


 

 

Significant piece of industrial land for sale /new-zealand/en-gb/news/848/significant-piece-of-industrial-land-for-saleChristchurchSignificant piece of industrial land for sale
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Wellington Industrial building - Kenepuru drive propertyAn industrial building at 75-77 Kenepuru Drive currently leased to long-term and high profile tenant Carter Holt Harvey has been sold to the Porirua City Council by commercial property specialists, JLL. 

Commercial Sales Broker at JLL, John Persico confirmed a new six year lease with Carters Holt Harvey from 1 May 2015 whilst launching a marketing campaign for the sale. Persico brokered the sale to Porirua City Council who have purchased the prime investment opportunity. 

“This leasehold opportunity offered investor’s inbuilt rental growth and due to the continuing development of this up and coming industrial area and its high vehicular exposure, enquiry on the campaign was very strong. There is the possibility to further develop the site which creates another opportunity to increase the rental revenue which was very attractive to investors,” says Persico. 
Carter Holt Harvey’s lease is generating a net annual rental income of $233,929 + GST. This 9,217sqm site is located within an industrial zone and is contained within two titles which are subject to ground leases. The site includes 2,388sqm of gross lettable area plus an extensive yard.

Council Property Sub-committee Chairman Ken Douglas said the purchase made good financial sense giving them another source of income and greater control over a strategic site.  The Council’s return will as a result improve from 7 per cent per annum to 13.5 per cent.

“The Council will get a good return on leasing out the site and this area will be even more attractive in future as Kenepuru is one of the connection points to the new Transmission Gully highway,” Cr Douglas said.

“Porirua City Council has been open about the fact it has to overly rely on rates for income so it makes sense to take opportunities like this where we can have a good ongoing return. Over the next couple of years Porirua City intends to sell a lot more property than it purchases. The Council has recently consulted on divesting land and property that it owns around the city that currently provides ratepayer's little or no return.”

Situated in a key location within close proximity to Wellington City, the property features prominent road frontage to Kenepuru Drive which is the host of the main traffic thoroughfare between Tawa and Porirua. Neighbouring retailers to the site include Moore Wilsons and Plumbing World.