Lower Hutt industrial business park up for grabs
A well-known property developer is selling a large business park based in one of Wellington's largest industrial precincts.
Shayne Hodge, through his company Seaview HP, has put Port Domain Business Park in Seaview, Lower Hutt on the market.
Hodge is involved with Hodge Group, a family-owned company which has been in property for around 70 years.
The 29,104 square metre Lower Hutt site is one of the largest land holdings in Seaview. As at September 2016, the rateable value (RV) was $4.6 million.
CBRE Wellington associate director Dharmendra Mistry, who was marketing the property, said land in Seaview was "incredibly scarce and at a premium, making this land holding incredibly, and increasingly more, valuable".
CBRE Wellington industrial sales agent Gary Hansen said industrial properties were a "desirable asset class" as they were often easy properties to manage and maintain.
"In addition, with the scarcity of land, tenant demand is strong in this asset class resulting in reduced vacancy risk."
The property has an extensive yard, car parking areas and a large number of buildings of various ages dating back to the late 1950s.
The buildings are spread across the site and have been progressively refurbished over the years.
In 2010, about $2 million was spent refurbishing the property to maintain the complex.
The property is on a high profile spot, on the corner of Waione St and Port Rd – both major roads into Seaview. The site is often referred to as "The Gateway to Seaview", Hansen said.
The property is 100 per cent leased, and is home to 12 tenants, many of whom had been on site for years.
The anchor tenant is NZ Tube Mills which leases 48 per cent of the park, producing 45 per cent of the income generated from the property.
NZ Tube Mills, which has been in business since 1938, has a lease through until 31 August, 2024.
Other tenants include Bramco Granite and Marble, NZ Van Lines, Universal Trucks and Equipment, Metro Brick and Tile Trends.
CBRE Wellington associate director Rick Stace said the size and location of the site offered "significant future redevelopment potential for the owner".
The Hodge family's interest in property dates back to the 1940s, when Shayne's grandfather joined Dunedin construction firm W L Tyrie as an apprentice, and later bought the company.
Shayne's father John took over in 1973, expanded his business interests and co-founded Waltus Group, a company that specialised in property syndication.
This later became the sharemarket-listed Urbus Properties which was later taken over by ING Properties.
In 2004, Shayne and his brother Brendon received a payout of about $25m from ING for the management of the Urbus property portfolio.