A high-profile property along the city’s main arterial Fergusson Drive is for sale again after a change in the vendors’ personal circumstances and is expected to rally interest from a broad segment of the commercial market.

Only around a third of the 1,568sqm flat site at the corner of Fergusson Drive and Totara Street, Trentham is developed, with Brendan Foot Supersite’s service centre and the popular Café Equinox occupying the approximately 550sqm showroom/workshop property with associated canopy, parking and yard areas.

Originally constructed circa-1970s as a typical suburban service station and since decommissioned, the property at 458 Fergusson Drive was redeveloped into a café, showroom and mechanical workshop around 2010.

The café, including outdoor and indoor seating, is positioned at the western side of the property fronting Fergusson Drive, a vehicle showroom and reception is at the southern end of the property linking into the rear warehouse vehicle service bay area, and a large canopy along the northern end of the site allows for extensive off-street parking.

Across the two tenancies, the property returns annual net income of $87,789pa plus GST with existing leases running until early-2023, and Brendan Foot Supersite having a further three-year right of renewal.

Bhakti Mistry and Christian Taylor of Bayleys Wellington Commercial are marketing the Business Commercial-zoned property, which will be auctioned on Thursday 25th August.

Mistry said the property sold last year to a Wellington-based private investor couple, however due to compelling health issues, they reluctantly need to sell to streamline their commitments.

“This unexpected change in the vendors’ personal circumstances means that the property is now back on the market creating an opportunity for passive or add-value investors, developers or owner-occupiers to secure an underutilised site in an area that is primed for growth.

“With the broader region experiencing a housing shortage, and Upper Hutt City Council expected to further encourage more high- and medium-density housing across the urban valley floor, favourably-zoned land is attracting attention.

“The subject property’s Business Commercial zoning allows for a wide range of uses, and there’s scope to pursue redevelopment options – both commercial and/or residential to optimise the value of the landholding.”

Mistry said the site works particularly well for Brendan Foot’s established and proven vehicle service/showroom business and with very few high-profile available sites in Upper Hutt to accommodate such an operation, a passive investor could look to negotiate ongoing lease options.

“Alternatively, a new owner could collect the current income with an eye for occupation themselves once current leases expire, or use the income to provide a buffer until redevelopment plans can be firmed up.

“There’s inherent potential for multi-unit commercial and industrial development to better utilise the site’s footprint, or an astute buyer may opt to landbank the property with a view to exploring residential/mixed-use options.”

The property is directly opposite the main entrance to Trentham Memorial Park, minutes from Royal Wellington Golf Club, Trentham Racecourse and the Trentham train station.

Upper Hutt is undergoing widespread transformation with several new housing developments progressing and new commercial/industrial stock being developed.

On the back of projections that the city could need an extra 5,600 houses by 2047, large areas of suburban Upper Hutt – including Trentham – are earmarked for medium-density housing, and developers are currently pursuing plans to put houses and commercial properties on land around Trentham Racecourse.

Ministry of Business, Innovation and Employment recently committed to 1,300sqm in stage one of Willis Bond’s $100 million Blue Mountains Campus on the site of the former AgResearch centre in the Upper Hutt suburb of Wallaceville, joining KiwiRail which is leasing 2,700sqm for a control base for the North Island.

Meanwhile, work is progressing on the $100 million-plus New Zealand Campus of Sport and Innovation in Trentham, a $32 million sports hub at Maidstone Park and the $50 million Lane Street Studios film production facility.

Click here for more information on the listing.