A high-profile Dunedin industrial property on a new eight-year lease to NZX-listed company Downer is for sale in a tightly held industrial area with excellent exposure to the motorway.
The 14,975sq m property is prominently located at 12 Irmo Street, Green Island, off the suburb’s main street, Main South Road.
It also fronts State Highway 1 and the motorway off-ramp, giving the site excellent profile and exposure to passing traffic.
The property comprises a large area of flat, partially sealed future development land, located adjacent to Downer New Zealand’s regional offices and yard.
Colliers International has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 9 December, unless it is sold prior.
“Downer has committed to a new eight-year lease returning $200,000 in net annual rent, plus two rights of renewal of four years each.
“Rental growth is locked in, with CPI reviews every two years and market rent reviews every five years.
“Commencement of the new lease is conditional upon vendor-funded site works, which are currently underway, with the sale of the property subject to the lease becoming unconditional.
“The site also includes a truck wash on a separate lease returning $2,000 in net annual rent, with CPI rent reviews every five years and final expiry in May 2045.
“With strong tenant covenant and structured rental reviews, this is an exceptional passive industrial investment.
“The property also has future development potential, with a lease clause allowing for future improvements. This provides an opportunity to add value in the longer term.”
The property is zoned Industrial 1 under the Dunedin City Council District Plan and is zoned Industrial under the Second Generation District Plan.
It is well located in an established industrial and commercial precinct that is popular with large occupiers including NPD, Allied, Escea, Harraway & Sons, Z Energy, Flex Fitness and a Fresh Choice supermarket.
The wider Dunedin property market remains positive with a number of developments planned or already in the works, including the proposed $1.4 billion hospital build, ongoing investment by the University of Otago, plans for a new community hub in South Dunedin and a Central City/George Street upgrade.
Tenant Downer Group is a leading provider of integrated services across the transport, water, energy, telecommunications and facility management sectors.
It employs more than 52,000 people across more than 300 sites, primarily in Australia and New Zealand but also in the Asia-Pacific region, South America and Southern Africa.
The company has a history dating back over 150 years and is listed on the Australian Securities Exchange (ASX) and New Zealand Stock Exchange (NZX).