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Kāpiti Offering With Scale And Two Titles
An industrial landholding of more than one hectare and home to 11 tenants, midway along the main thoroughfare through Paraparaumu, has been placed on the market for sale sparking interest from investors across the country.
Zoned Industrial-Service, held in two titles, and with a 93-metre frontage to Kāpiti Road, the fully-leased offering at 112 and 118 Kāpiti Road has been in the same family ownership for more than 30 years.
Ballinger Industries Limited, a family-owned commercial property owner and developer operating in the greater Wellington area, is realigning its investment portfolio hence the forthcoming sale, but will retain leases over warehouse and office space at the property.
At 112 Kāpiti Road, the road frontage portion of the large circa-1980s warehouse building that has undergone subsequent upgrades and refurbishment, is home to showrooms/premises for multiple tenants including Resene, BNT Automotive and 24/7 Fitness Limited.
The back portion of this building is occupied by businesses including Kāpiti Goodies Limited, Ballinger Industries, Plumbing World and Trellis Direct.
To the rear of this structure is another building – a part two-level, part high-stud single-storey warehouse with tenants such as NZ Post, Kāpiti Pure Foods Bakery, AVS Auto Repairs and Beach FM.
Next door, 118 Kāpiti Road also comprises two buildings. The front one is solely occupied by Plumbing World, including a yard area to the rear, while the building to the back is a 1970s-built two-level building with a ground floor warehouse and upstairs offices. The head lease is to Ballinger Industries, with a sub-lease to Kāpiti Toy Library.
Across the two sites, Plumbing World accounts for 20 percent of the total income and Resene, 16 percent.
Mark Sherlock of Bayleys Wellington Commercial is marketing the property by tender, closing 4pm Wednesday 27th October.
Noting that Kāpiti Road carries more than 20,000 cars per day, Sherlock says position is everything and with the way the Kāpiti Coast is evolving, this offering represents opportunity-plus.
“A freehold parcel of 10,631 square metres is a big lump of land in anyone’s books – but for Kāpiti, this is a property with real scale and it’s a significant investment proposition for an astute buyer.
“The fact that it is held in two titles gives additional scope for the future and the robust underlying land value will add weight to any plans in coming years.
“For the time being, however, the more than 6,000 square metres of seismically-compliant buildings as they stand represents a solid industrial investment offering with proven, longstanding tenants and good returns.”
Sherlock says interest to date has largely come from the Wellington region, but the property has also attracted early enquiry from outside the area.
“Investors nationwide are looking for property with scale and inherent future capacity,” he says.
“The well-established 11 tenants are on varying lease terms with renewals, the property returns annual net income of $619,443, and there’s genuine rental upside to be unlocked here.”
Sherlock says “Kāpiti is booming” and planned major infrastructural projects either underway or nearing completion, underpin the location.
“The long-awaited Transmission Gully project is inching closer to opening and the Peka Peka to Ōtaki expressway part of the northern corridor upgrade will see a four-lane expressway from the Kāpiti Coast to Levin, streamlining traffic movements,” he says.
The Mackays to Peka Peka expressway (State Highway 1) passes just to the east of this property, while the Paraparaumu town centre which includes the Coastlands Shopping Centre, is around five minutes’ drive to the east.
Click here for more information on the listing.
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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