Converted Hutt Energy depot expected to spark interest
Elevated view of large industrial and retail property for sale at 453-477 Hutt Rd, Lower Hutt.
The former Hutt Valley Energy Board’s main depot, now converted into a multi-tenanted industrial and retail property in Alicetown, Lower Hutt, and earning about $856,000 net income a year in rent has been put on the market.
The property has excellent parking and is anchored by a large self-storage facility trading under the Storage King brand,” says Tim Julian of Colliers International, who with colleague Richard Findlay, is selling 453-477 Hutt Road by private treaty closing at 3pm on October 22 unless it sells beforehand by negotiation.
“Buyers looking for high visibility and good exposure for their businesses will be attracted to this large mixed use property,” says Julian.
“With 178 metres of street frontage in the direct line of sight of State Highway 2 and the Melling commuter rail line, this property offers huge profile with over 55,000 vehicles passing the site daily.”
Julian says a floor area of more than 10,000 sq m and over 100 parking spaces on a site of 9011 sq m site combine with the prime location to make the large property one of the highest valued properties in the Hutt Valley.
The property, leased to 17 tenants, has immediate potential for rental increase with two more tenancies currently not leased.
“With a weighted average remaining lease term of 4.8 years the property compares favourably with other multi tenanted assets on the market across the country at present,” says Julian.
“This property will appeal to a range of investors both locally and across the country including some syndicators, not all of whom require super long leased single tenant type properties.”
A road level view of the property for sale in Alicetown, Lower Hutt.
He says local investors may see opportunities to “tweak” the property across a range of areas to enhance the net income presently being realised.
Julian says Wellington is recognised as a market offering significantly higher yields than a number of other centres. “It is perhaps, a little under-valued with very low industrial vacancy rates and the perennial problem of a lack of land supply.”
He expects “out of town investors” frustrated with low yields in their home markets to be among those showing interest in the Energy Centre.
“The property is in a tightly-held location where vacancies are falling and is strategically located between Lower Hutt’s central business district - only two kilometres away - and the commercial hub of Petone.
“It offers easy access from Hutt Rd, State Highway 2 and the Melling railway line, and is within 300 metres of the Dowse Interchange.”
Findlay says the property is expected to continue to perform strongly given its size, visibility and diverse tenancies.