High profile investment with a long term lease to NZ Bus

An industrial property which has recently been extensively redeveloped for NZ Bus is up for sale.

110 Hutt Road, Wellington is being marketed for sale by Matthew St Amand and Rick Stace of CBRE and is available for sale by Deadline Private Treaty closing Thursday 16 March 2017 at 4pm (unless sold prior). It is understood that Infratil Infrastructure Property Limited, who owns 110 Hutt Road, is looking to divest the asset to recycle capital for other projects.

Matthew St Amand, Managing Director of CBRE Wellington, says “110 Hutt Road presents an opportunity to purchase a high profile investment grade property with a fifteen year net lease to NZ Bus and excellent rent review provisions.

The 3,843sqm freehold site comprises a functional, medium stud workshop with a large concreted yard area and modern, refurbished and air-conditioned offices. The property has been extensively redeveloped for NZ Bus, a public transport company and the largest operator of urban bus services in New Zealand. Rick Stace, Associate Director at CBRE Wellington, says “110 Hutt Road has a strong underlying land value and future redevelopment potential on lease expiry”.

NZ Bus is owned by Infratil Limited, a New Zealand-based infrastructure investment company which owns airports, electricity generators and retailers, and a public transport business with operations in New Zealand and Australia. It is the largest operator of urban bus services in New Zealand moving over 50 million customers across Auckland and Wellington every year. NZ Bus owns over 1,000 buses, seven depots and employs approximately 2,000 people.

Rick Stace, says “The15 year net lease to NZ Bus which commenced 1 August 2015 with rights of renewal for a further 10 years provides ongoing tenure as a bus depot”. Andrew Lamb, General Manager, Development for Infratil adds “NZ Bus remains committed to the site and the sale of the property will not impact or affect any operations”.

Matthew St Amand, says “110 Hutt Road boasts an excellent location with wide road frontage to Hutt Road at a major intersection. The property is well positioned and provides good access to both State Highways and the Wellington CBD.

Seismic upgrade works have recently been completed with 110 Hutt Road now meeting life safety protetction under seismic loads of 50% New Building Standard (NBS). This included new steel bracing to the underside of the first floor and new foundation elements.

The OCR at an historic low coupled with access to affordable capital is generating more interest from investors in the New Zealand market. This has been particularly evident in Wellington over the past 18-24 months with an increase in liquidity and buyer interest. Rick Stace, says “Given the quality of this offering, CBRE strongly recommends your early consideration of this outstanding investment and encourages motivated purchasers to get in touch without delay.

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ABOUT CBRE GROUP, INC.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.