High-exposure Hutt Valley industrial investment

A high-exposure industrial property at one of the Hutt Valley’s busiest intersections has come to the market, giving investors a compelling opportunity to secure a flagship asset in a well-performing sector.

Located at 1 Port Road, Gracefield, at the Seaview roundabout, the property is fully leased to national occupier Motion New Zealand Limited, one of the country’s leading suppliers of engineering-related tools and componentry.

The 1,080sqm freehold landholding supports a circa-926sqm building featuring a 184sqm north-facing showroom with a contemporary fitout, and 189.5sqm modern modern, air-conditioned first-floor offices with good natural light. The high-stud 552sqm warehouse space is bolstered by a generous display yard and six on-site car parks which gives the property strong functionality for trade-based businesses.

Built in 1971, the property has a steel portal frame with precast and block wall construction. A major seismic upgrade completed in 2023 has lifted the building to 70 percent NBS, enhancing its long-term appeal. The site benefits from a proven leasing history and was most recently occupied by Kitchen Studio, which has since moved to nearby premises.

Motion New Zealand is on a six-year net lease, delivering net rental of $201,826 plus GST, with all outgoings paid by the tenant. The lease has CPI-linked rental growth, and an additional income stream is provided by an on-site billboard facing the main traffic flow.

The property will go to auction on Thursday 16th April, and is being marketed by Paul Cudby and Mark Walker of Bayleys Wellington Commercial.

The property’s scale, location and lease profile make it a noteworthy proposition in a competitive industrial precinct, says Cudby.

“Corner sites of this prominence seldom come to the open market. With a national tenant in place, strong traffic exposure and built-in rental growth, this is an exceptional passive investment in one of the Wellington region’s most strategic industrial hubs.

“Motion New Zealand consolidated its Hutt Valley operations into the Port Road building last year, relocating from three separate sites into this higher-profile, purpose-fit facility. The site works well for the operation, and they’re committed to the site.”

The subject property is zoned General Business, a broad-ranging designation allowing light industrial, warehousing and storage, trade sales, car yards, technical workshops and similar. Cudby says vacancy rates remain low in the sought-after Seaview-Gracefield precinct as occupiers look to position themselves strategically for business advantages, and to be located close to core markets.

“The precinct is recognised as the Wellington region’s primary industrial zone, and is home to logistics operators, manufacturing facilities, distribution centres, and major infrastructure users that leverage the streamlined accessibility to State Highway 2.

“Assets tend to be a long-term hold for investors, as the returns and inherent capital gain over time are proven in the Seaview-Gracefield area.”