Lower Hutt's good value 'ugly duckling'

The industrial property at 18-20 George Street, Stokes Valley, won't win a beauty contest but it might take a value-for-money award. Photo / Supplied

An industrial property in Stokes Valley, Lower Hutt, is described by agents as "definitely an ugly duckling" and has been placed on the market for sale with clear instructions that it must be sold come auction day.

Richard Faisandier and Andrew Smith of Bayleys are quick to say the 'ugliness' of the freehold property is mainly cosmetic and the upside is, that it offers "exceptional bang for an investor's buck".

"It has warts and bumps and won't be winning any glamour contests anytime soon, but it's unlikely there's anywhere else in the Wellington region where a buyer could get better value for more than 1000sq m of land and buildings," says Faisandier.

The property at 18-20 George St has a rateable value of $580,000 and early feedback from prospective buyers is that $400,000 would be a reasonable level to kick off the bidding in the auction room at 11am on Thursday August 3.

"We're not saying that's what it will sell for, but owner-occupiers or investors with an entry-level budget should look past the aesthetics and consider this one," Faisandier says.

The 1145sq m double-bay warehouse building with mezzanine and office space is on a 1665sq m site in Stokes Valley's industrial area close to the entrance to the Lower Hutt suburb.

Faisandier says potential buyers need to look beyond the quite rundown yard and turn a blind eye to the piles of pipes, pallets and old equipment cluttering up the interior and bear in mind that first impressions don't always count.

"Retiring owner Bob Morgan has liquidated his drainage contracting business and now wants to sell the George St land and buildings so he can enjoy life beyond retirement."

An owner-occupier looking for light manufacturing or engineering premises could fit right into the environment. Photo / Supplied

Smith says to place the Stokes Valley property in market context, "Bayleys recently sold a property around a third of its size in Horlor St, Naenae - just 7km from Stokes Valley - for $480,000. The Horlor Street property was only 400sq m whereas the George Street one with a building area of 1145sqm is nearly triple that size," he says.

"While other postcodes may be more fashionable, Stokes Valley offers value-for-money fair and square and there are many businesses that don't need street profile to operate.

"An owner-occupier looking for premises for light manufacturing, engineering or service/trade-orientated businesses would fit right into the George St environment."

Smith says that for property investors, the assessed potential net rental is around $55,000 per annum and the property could easily be split into two tenancies.