A strategically-positioned industrial property on a high-profile corner site at the southern entrance to Levin, will give a new owner potential to leverage the strong growth credentials that the Horowhenua region is experiencing off the back of infrastructural investment.

Currently configured as a mix of workshop, warehousing, storage and yard space, 49-51 South Road Levin/State Highway 1 has broad frontage to the highway and benefits from strong traffic volumes and visibility. It is around 1km from the centre of Levin, the largest town in the Horowhenua district.

The industrial-zoned freehold site is 1,356sqm, with the building recently reroofed and offering 871sqm of flexible space. It returns net income of circa-$99,000 plus GST and outgoings from several tenants on varying lease terms

Independent tyre company Orizen Tyres, founded on the Kāpiti Coast and one of 12 independently owned Orizen stores across the North Island, occupies workshop space and the front yard. There is also a gym operator, various storage lockups, a contractor yard and a modest rear building.

The tyre company and gym are both on three-year leases from August 2024 and January 2025 respectively, while the other occupiers are on month by month arrangements.

Johnny Curtis and Simon Butler of Bayleys Wellington Commercial are teaming up with Karl Cameron. Bayleys Manawatu to market the property, with tenders closing Wednesday 2nd July.

Curtis says while the property returns decent holding income, the best and highest use for the site is likely to be a complete redevelopment, which could be staged to accommodate the existing tenants.

“This is an underutilised site given the presence of big name businesses in the broader neighbourhood such as Plumbing World, ZIP Plumbing Plus, Fletcher Steel, Placemakers, Allied Petroleum, and Carters building supplies.

“Suitable developments could include industrial warehousing or service retail such as farm supply businesses – given the prevalence of rural property in the wider area – with the site providing opportunity to capitalise on the scale, location, and accessibility.

“Alternatively, an owner-occupier could see value in the site by opting to use some of the space themselves and clipping income on the balance of the property, while an investor could look to add-value to the existing buildings and get some rental uplift. Regardless of the path taken, the property offers flexibility and identified potential to optimise use and returns.” Forward-thinking buyers will be taking note of the progressing Ōtaki to north of Levin (Ō2NL) highway project which forms the northernmost section of the Wellington Northern Corridor and is aimed at improving the safety and resilience of the transport network within the wider region. On completion, travel times are expected to be around 45-50 minutes to Wellington and 30 minutes to Palmerston North.

Butler says the Ō2NL Expressway is designed to improve regional connectivity by strengthening the strategic economic link from Wellington through to the central North Island and is due for completion in 2029.

“Some businesses are actively looking to move their operations out of the established Wellington industrial precincts and into the Horowhenua district to unlock cost and logistics efficiencies with streamlined access north and south. Palmerston North is just 40km east of the subject site and is another major market for industrial occupiers, so Levin starts to make good sense.

“Contracting businesses, construction firms, logistics operators and such like are planning ahead and shoring up efficient base, transportation and distribution networks.

“The Levin market itself is growing too, with investors starting to appreciate opportunity off the back of roading infrastructural upgrades, along with the higher yields and better value proposition the area can offer.”

Horowhenua District Council has identified several urban growth areas with the region growing faster than expected. The population of the district is 38,200 (June 2024) and forecasts used by council say by 2041, more than 62,000 people will live in Horowhenua which includes the towns of Foxton, Shannon and Tokomaru.

Recent significant sales by Bayleys in Levin, including industrial properties in Power Street and Roe Street, and on the Kāpiti Coast, support the interest being shown in the market north of Wellington and is expected to escalate as work on the Ō2NL Expressway advances.