The Property

• Five contiguous separately-titled industrial properties, on sites ranging from 754sqm to 1,019sqm, totalling 4,403sqm land

• Comprising three secure yards and two sites with high-stud warehouse buildings

• All lots have their own separate lease to Keith Andrews Trucks Limited through to October 2028, with a further one (1) x eight (8) year right of renewal

• Combined net rental of $250,693pa + GST

• Zoned Special Business

Quick Look

• National Total Property marketing campaign – sale method by way of tender

• Interest generated via Bayleys’ databases, direct approaches to prospective parties, and Total Property magazine

• 22 inspections completed

• 10 tenders received

• SOLD for $4,550,000 at a yield of 5.5%

• Purchased by a local private investor

The Story

Vacancy levels in Seaview-Gracefield, Wellington’s prime industrial precinct, are at the lowest levels seen in recent years, so Andrew Smith of Bayleys Wellington was expecting strong demand from investors for this weighty industrial offering marketed by tender as individual lots or in combination.

What surprised him was the number of interested owner-occupiers prepared to ride out the existing lease term to the well-established tenant – in order to secure property with yard space for the future in this precinct.

“I received over 50 enquiries on the property and despite the five years remaining on the lease, it was such a unique offering in today’s market that the two immediate under-bidders were owner-occupiers which reflects the tight market and lack of big stock available,” he says.

“Yard areas are in such short supply and with high representation of transport and contractor businesses in the Seaview-Gracefield precinct, the property was extremely well-received by the market and a good result was achieved through the tender process.”

Andrew was instrumental in the sell-down of this original Seaview subdivision in the early-2000s, has subsequently resold almost every property in the precinct, and had helped the vendors incrementally acquire the adjoining sites over the years.

“Real estate is most definitely a relationship business and it’s a privilege to advise and help repeat and referral clients with strategies to optimise the value of their assets.”

Vendor Comment

Vendors Dianna and Richard Dalzell chose to sell with Bayleys because of their longstanding association with agent Andrew Smith, and they valued his in-depth knowledge of the precinct.

Purchasing the Seaview properties in the years spanning 2005 to 2018 and improving the sites to future-proof their successful truck and machinery, parts and service business, the Dalzells have been part of the Wareham Place landscape for decades.

“During the pandemic, we took the opportunity to sell our business to Keith Andrews Trucks Ltd and retire, retaining the five properties as investment assets, all on 8-year leases to Keith Andrews Trucks.

“With five years still to run on the current lease, we decided to put the properties up for sale in August, and having bought our first section and three of the subsequent sections through Andrew at Bayleys, we decided to list with him.”

Appreciating his professionalism and knowledge of the Seaview area and its business community, the Dalzells say they had confidence in Andrew’s marketing and the tender process to get a good outcome.

“We are pleased with the sale price achieved, particularly in light of the economic situation and the generally subdued property market.”

“We also own an industrial workshop property in Porirua, leased to the same tenant as the Seaview sites which we are retaining for the time being, but if we decide to sell in the future, Andrew will be our man!”