Two productive office investments are available for sale in Lower Hutt’s bustling commercial precinct, presenting an attractive proposition for investors looking to secure income-generating assets with potential for value enhancement.

Bayleys Wellington brokers Oliver Hourigan and Paul Cudby are marketing the properties - a full-floor office on Level 1 and a partial third-floor office within the prominent Woburn House building at 40-44 Bloomfield Terrace, for sale together or separately.

The properties feature in Bayleys’ latest Total Property portfolio and are offered for sale by tender, closing at 4:00 pm on Wednesday, 30th October 2024 (unless sold prior).

Hourigan says that the units totalling 1,291sqm (more or less) are located opposite the Queensgate Mall, providing excellent amenity value and flexibility for buyers given the option to purchase each floor together or separately.

“The full-floor office on Level 1 spans approximately 861sqm and includes two dedicated car parks, generating a net income of $77,540 pa from six tenancies. This diverse tenancy arrangement helps to mitigate risk while ensuring a stable revenue stream.

“With a 107sqm (more or less) vacancy currently available, including one car park, new owners have the immediate opportunity to boost rental income by an estimated $28,020 pa by leasing the space.

“The Level 1 tenancy profile includes an education provider, charitable trust, and several community and housing services.

“The third-floor office, spanning 430sqm (more or less) on its own title, is fully leased to a single established tenant – Qube Logistics New Zealand - returning $67,596 on a net lease to December 2025 with two renewal rights of two years each.

“These lease features provide a low-maintenance, straightforward investment for buyers seeking a bottom-drawer addition to their portfolio.

“With the properties located in one of Lower Hutt’s most desirable commercial precincts, they offer a superb chance to secure a foothold with appreciation potential,” Hourigan says.

Constructed circa 1980 and seismically strengthened to 72 percent of New Building Standard (NBS), Woburn House is a unit titled four-storey building, providing individual titles for the ground, first and second floors, while level three comprises two titles, each a half floor.

Bayleys Wellington broker Paul Cudby says the properties present a rare opportunity to acquire two versatile, income-generating assets in Lower Hutt’s key commercial hub.

“With Queensgate Mall on the doorstep and a variety of transport links nearby, these properties provide investors with a secure rental income from a diversified tenancy base while also offering room for growth through lease renegotiations and filling the vacant space.

“The properties’ proximity to the mall, surrounding amenities, and transport infrastructure makes them particularly appealing to tenants, with the immediate locale experiencing low vacancy rates and a steady demand for office accommodation.

“The Reserve Bank’s recent Official Cash Rate cut and subsequent downward movement on interest rates have gone some way to alleviating investor concerns following a volatile year. However, rent remains critical, making high-yielding opportunities - such as the subject properties - more attractive in today's market.

“New Zealand’s yield curve is now on the rise for the first time in around two years – signalling potential stabilisation of economic conditions. These office assets provide a lucrative investment opportunity for buyers seeking a solid tenant base and long-term growth potential, with the increased flexibility of purchasing one or both properties primed to benefit from the location benefits of Lower Hutt’s commercial district.”

Click here for more information on the listing.