NZ Bus depot on the market
Infratil is offering the Kaiwharawhara bus depot to investors on the attraction of a strong tenant and long lease.
The 110 Hutt Rd freehold site has been renovated for NZ Bus, the largest operator of city buses in New Zealand.
The renovations included new steel bracing beneath the first floor, and strengthening the foundation.
NZ Bus has a 15 year lease on the site, which began August 2015, and a further 10 year right of renewal.
The property had a rateable value of $4.6 million in 2015, according to QV.
The seismic upgrade took the depot up to 50 per cent of new building standard.
The site includes a large concreted yard area, renovated offices with air conditioning, and a medium stud workshop.
The property faces Hutt Rd and is located on a major intersection.
When it was first announced that buses were going to be moving into the Hutt Rd site in 2015, cyclists were worried it could endanger bikers on the road.
Cycling Action Network spokesman Patrick Morgan said he has not heard of any incidents in the area, but it has been a "pinch-point" between the buses, shared space, and new street light installations.
The Wellington City Council project to upgrade old lighting poles, and add in LED lighting along Hutt Rd between Tinakori Rd and Jarden Mile at Ngauranga is underway. The first phase of upgrading the shared path to remove the old lighting poles is under way.
The council expects to complete the lighting revamp in early 2017.
Morgan said upgrades to the shared pathway by the Wellington City Council to widen the narrow Kaiwharawhara stream overbridge would make things a lot better for the 500 cyclists that commute past the spot each week.
"It's one of the most heavily used roadways by cyclists," said Morgan.
The property is being sold by Infratil Infrastructure Property to free up capital for other projects.
Infratil is an NZX-listed infrastructure investment company that also owns NZ Bus, as well as other public transport business
NZ Bus remained committed to the site and the sale of the property would not affect any operations, general manager of development for Infratil Andrew Lamb said.
"We have sold a number in the past once we have a long-term lease, but bus depots are becoming more and more difficult to find."
The Kaiwharawhara bus depot housed about 30 buses as a fast service depot, Lamb said.
NZ Bus owns more than 1000 buses, seven depots and employs about 2000 workers, providing more than 50 million trips around Auckland and Wellington each year.