Hutt property for sale has three national tenants

The 31 Knights Rd property is home to Noel Leeming, Warehouse Stationery and Curtain Studio. Photo / Supplied

A bulk retail property in Knights Rd, Lower Hutt, that is fully-leased to three national tenants, and owned by a syndicate managed by Augusta Funds Management for more than 10 years, is now for sale.

The freehold site is home to the largest Noel Leeming store in Wellington; a Warehouse Stationery outlet and Curtain Studio with buildings taking up the majority of the 3846sq m site on a high-profile corner adjacent to the Queensgate shopping centre.

The 31 Knights Rd property, which has 26 on-site car parks, is being marketed for sale by tenders closing on December 6 through Grant Young and Mark Hourigan of Bayleys Wellington.

Young says the well-maintained retail precinct leverages off the customer base of neighbouring Queensgate.

"With Queensgate back on an even keel after last year's earthquake and the recent addition of H&M to its retail line-up, this is a busy part of the Hutt," says Young.

He cites the ease of access and good parking as major pluses for the Knights Rd property and says it stacks up well from an investment standpoint.

"The property has a net income of $760,440 and built-in rental growth with annual rent reviews tied to the Consumer Price Index [CPI]," says Young

"Seismic strengthening to 80 per cent of new building standard has just been completed which is reassuring for tenants and insurers.

"Add in the weighted average lease term of almost five years and we expect the banks to look on it favourably too."

Young says it is an easily-managed property and, as such, would appeal to a reasonably passive investor or even another syndicator.

"KCL Property (now part of Augusta) acquired it in 2005. Augusta Funds Management is known for being very selective about the properties it adds to its portfolio which is encouraging for a new owner."

The property comprises two structures with a total 3556sq m of lettable space. The original two-level retail building with offices and storage above is occupied by Noel Leeming and Warehouse Stationery, while the single-level later addition is home to Curtain Studio.

A rear service lane off Bunny St provides good delivery vehicle access

The rateable value of the property is $6,985,000.