Stage 1 of the state-of-the-art Blue Mountains Campus development in Upper Hutt, north of Wellington, is being presented to the market for sale.
A master-planned sustainable business and innovation hub for the wider Wellington region, the campus features blue-chip anchor tenants KiwiRail and the Ministry of Business, Innovation and Employment, and has been chosen as the Government’s preferred regional hub site.
Located at 68 Ward Street, Wallaceville on a site noted for being one of the safest in the region in terms of its superior resilience against earthquake, flooding, and landslip risk, the property has a weighted average lease term in excess of 16 years.
Stage 1 of the development comprises the fully refurbished Buddle Building and the adjoining new KiwiRail National Train Control Centre, which houses approximately 100 team members who are responsible for the train movements across most of New Zealand.
There is approximately 6,000sq m of total net lettable area across both buildings on 7,521sq m of freehold land that offers multiple landscaped green spaces. The buildings boast generous end-of-trip facilities and an on-site cafe. There are 43 car parks.
The total annual rental income from the property is approximately $2.9 million, while there are annual rental increases in place.
This strategically located property is surrounded by an extensive array of sought-after amenities, including train stations and supermarkets. It is also near the New Zealand Campus of Innovation and Sport, which officially opened in June last year and is home to the Hurricanes rugby team.
With the next stages of the campus now in planning and anticipated to attract innovation-focused businesses, Stage 1 has set the scene for a superbly resilient, sustainable campus that will meet the growing demand for flexible, future-proofed commercial space within the wider Wellington region.
Colliers Directors Richard Findlay and Richard Kirke have been exclusively appointed to market the property for sale and are taking expressions of interest with the deadline closing at 4pm on Thursday 14 March.
There is 6,000sq m of total net lettable area across both buildings on 7,521sq m of freehold land.
The Buddle Building has undergone an extensive strengthening and refurbishment programme to provide it with a 100 per cent NBS rating and deliver high-quality, modern office space. The building is an Importance Level (IL) 2 structure. It is also 5 Green Star Design-accredited and is seeking an As-Built rating now the building is complete.
The KiwiRail National Train Control Centre is a new, IL3 building rated to 130 per cent NBS.
Findlay, Managing Director at Colliers Wellington, says sustainability is at the heart of the campus development.
“Stage 1 is inherently sustainable through the reuse of the Buddle Building’s original structure to reduce embodied carbon, while improving the seismic resilience of the structure,” Findlay says.
“The brand new, bespoke KiwiRail building has also been thoughtfully designed and provides a welcoming and secure environment for their national train control team, which is delighted with its new home and is looking forward to many years at the campus.
“Upcoming stages of the development will look to incorporate mass timber structures that will reduce carbon emissions by substituting concrete and steel with timber. These practices will align with New Zealand’s ambitious environmental goals.”
The campus is only a two-minute walk from the Wallaceville train station, while State Highway 2 can be reached in a few minutes via car. Popular local entertainment and hospitality spot Brewtown is a two-minute drive away with shopping areas nearby in central Upper Hutt.
There are also convenience stores, childcare facilities, beauty salons, and fitness centres within walking and cycling distance.
Stage 1 of development has resulted in high-quality, sustainable office premises.
Kirke, International Sales Director of Capital Markets at Colliers, says the property offers a strong tenant covenant, which will be appealing for investors.
“Underpinned by KiwiRail’s 25-year lease at the property and annual rental increases that will provide future rental growth, this purchasing opportunity will generate interest from local and offshore buyers,” Kirke says.
“The wider Wellington region’s office market is particularly constrained by a notable lack of supply. The prime grade vacancy rate for the CBD is only 1.7 per cent, according to the latest research from Colliers.
“The campus blueprint for this master-planned property allows for up to 36,000sq m of commercial space that will suit a wide range of private and public sector organisations and it is set to become a significant asset for Upper Hutt when fully developed.”Stage 1 of the Blue Mountains Campus was developed by renowned property firm Willis Bond.
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