Carters Porirua for sale with space to grow
Carters Porirua is for sale at 75-77 Kenepuru Drive.
A large Porirua property leased to long-term and high profile tenant Carter Holt Harvey is for sale offering investors the chance to purchase a prime investment premises with development potential and inbuilt retail growth.
“This affordable industrial investment opportunity offers a return in excess of 10 per cent,” says John Persico, commercial sales broker at JLL, who is fronting the private treaty marketing campaign to sell Carters Porirua at 75-77 Kenepuru Drive.
“This property on leasehold land offers investors inbuilt retail growth,” says Persico who has confirmed a new six-year lease with Carters commencing May 1, 2015.
“The property is not currently using the full site coverage provisions allowed for under the district plan,” he says. “What this means is that the site could be further developed which gives investors the opportunity to increase their rental revenue. This may be in terms of accommodating expansion of the existing Carter Holt Harvey operations or a future tenant requiring additional facilities on-site.”
The lease with Carter Holt Harvey incorporates annual rental growth of 10 per cent and is generating a net annual rental income of $233,929 plus GST from gross rental income of $385,000. The building encompasses a 2388sqm gross lettable area plus an extensive yard.
The property is within an industrial zone and has a site area of 9217sqm contained within two titles that are subject to ground leases held in perpetuity with the Porirua City Council and which are subject to a combined annual payment of $162,000.
“Carters is set centrally upon the site and features a mix of showrooms, warehouse and storage areas along with dedicated onsite customer car parking and additional gated entry to the timber yard,” Persico says.
The property has a prominent road frontage to Kenepuru Drive which carries heavy traffic between Tawa and Porirua.
“It is located in an up and coming industrial area which is continuing to develop as a result of its high vehicle exposure. Neighbouring retailers include Moore Wilsons and Plumbing World.”
Persico says the Carter Holt Harvey lease offers the security of an established and solid tenant. “It is a respected New Zealand building supply company with over 50 building supply outlets throughout New Zealand and is the largest trans-Tasman timber production company in Australasia.”