Dial into Gracefield industrial properties

A leased office and data storage facility plus a parcel of developable land, on a high-profile corner in one of the Hutt Valleys’ preferred industrial precincts, is for sale.

The properties in Parkside Road, Gracefield have been under long-term ownership by telecommunications company One NZ, and are being divested with a leaseback over the main building to allow them to focus on their core business of delivering connectivity solutions.

40 Parkside Road comprises a substantial circa-1,500sqm two-storey purpose-built and well-maintained office and data storage facility built in the 1990s, with 15 on-site car parks across 2,552sqm of land. The office space is used by administrative and support staff, while the balance of the property includes managed spaces for control of cooling and power equipment along with high-end specialised telecommunications infrastructure serving parts of the greater Wellington region.

56 Parkside Road is a compact standalone 620sqm site prominently located at the corner of Hutt Park Road. There is redundant telecommunications equipment currently in-situ, and it is being sold with vacant possession. This piece of land presents flexibility and future upside in a high-profile location.

The developed property returns net annual income of $277,309 plus GST, with One NZ taking a new five-year net leaseback on settlement plus two, five-year rights of renewal, with the lease having fixed annual increases of 2.75 percent, and reviews to market on renewal.

Ethan Hourigan, Oliver Hourigan, and Steve Rendall of Bayleys are selling the Parkside Road properties as one lot, via a tender campaign closing Wednesday 10 December.

Strategically positioned in the well-established Gracefield industrial hub, the properties provide options for forward-thinking investors and landbankers, says Ethan Hourigan.

“The Parkside Drive-Hutt Park Road corner is at the heart of one of the region’s most active industrial and commercial areas, and offers excellent exposure and connectivity to State Highway 2 and the wider Wellington region.

“With One NZ entrenched on the site and committing to a new five-year lease and renewals, there’s long-term, reliable income from the office and data centre building and potential to develop the smaller, vacant site.

“Smart investors will appreciate the shortage of land and industrial space in the wider region, and in Gracefield itself with this unique offering combining secure investment income with significant future development potential which is always a winning formula.”

The properties are zoned Special Business which allows for low-hazard industrial use. Gracefield is considered a hub for trade services, light manufacturing, logistics, and warehousing, and is also a niche precinct for laboratories and tech businesses, with the likes of world-class medical diagnostic firm AROTEC based there.

“Major national and multinational brands have cemented a presence in Gracefield/Seaview and it’s viewed as a strategic industrial precinct. Nearby occupiers include Mainfreight, KiwiRail, Steel & Tube, VTNZ, and Allied Moving Services,” says Oliver Hourigan.

“NPD Fuel opened its Lower Hutt operation a few months back just 250m from the subject sites and there’s plenty of activity in the broader precinct, with minimal vacancy.”