Investors starved of quality offerings are expected to keenly bid for six South Island properties being offered by Colliers International in its Mainland Auction campaign.
Investment brokers Dick Thomas and Craig Thiele, who are heading the campaign, make no secret of the fact that high calibre properties remain scarce as owners bide their time until more stock becomes available.
“We’re very pleased with the properties we’ve put together for this campaign. It’s about quality. And well-located prime properties with good tenants remain in short supply. There are plenty of cashed up investors looking for property but the reality is that quality listings are scarce,” Thomas said.
Thomas and Thiele believe the auction campaign will generate strong interest.
The Dunedin City Council is selling off a premium corner site in Andersons Bay Rd. The 2754m2 property is being sold as a lessor’s interest (land only) with perpetually renewable leases of 21 years. Colliers Dunedin recently sold three similar lessor’s interest properties above valuations on behalf of the Council for a total of more than $1 million, according to Stephen Cairns, of Colliers in Dunedin.
The other Dunedin jewel is a modern office building in Vogel St, occupied by PGG Wrightson, which has a long-term lease.
Cairns said the commercial property market in Dunedin remains generally strong, with well-located quality property with a solid cashflow in high demand. Although business confidence has waned, the market for sound commercial investment properties has proven to be robust.
In Queenstown, a quality industrial investment is up for auction in Frankton’s Glenda Dr. The profile corner site has a national tenant and is in the heart of the modern industrial area. Mark Simpson, of Colliers in Queenstown, said Frankton remains the key growth area in this sector because of historical lack of supply of land able to support commercial uses.
Simpson said Frankton continues to establish itself as another commercial centre complementary to Queenstown, albeit spread across a broader area incorporating Glenda Dr, the older Frankton Village area, Remarkables Park Shopping Centre, and the existing Frankton Flats (Five Mile) area. However, changes to the roading network planned in the next few years will bring together and provide much better access links to these areas as well as central Queenstown.
Property in Oamaru is similarly tightly held and two recent deals have both been to local investors. With this in mind, Thomas expects a commercial building in Thames St to be snapped up. The façade is about to be upgraded and Classic Clothing has a 10 year lease with rights of renewal. Colliers recently sold a 21ha commercial /rural block of land owned by Nikkon Seal and it also sold the Oamaru Countdown late last year for which there were multiple offers.
In Christchurch, Kauri Stables at Weedons will go under the hammer. Thomas said there were several parties interested in the 8.5ha racing thoroughbred training property, which has an 800m racing track and state of the art facilities.
Entry-level investors are expected to eye neighbouring units in the modern industrial Newpark Estate in Woolston, Christchurch. The near new units are available together or separately.
The properties will be auctioned in Christchurch on August 26.
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