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Much-needed Cromwell industrial land coming to market

Muchneeded Cromwell industrial land coming to market

A new industrial estate in Cromwell is bringing much-needed industrial land supply to the burgeoning region and offering owner-occupiers and investors a rare opportunity to secure land in a high-growth location.

Cromwell Industrial Estate is a carefully considered development that will comprise 29 sections on 4.8ha to the south-west of the town centre.

The Estate is being developed by Central Otago District Council with strategic planning recognising the need for additional industrial land to meet the demands of Cromwell’s current business community and substantial projected growth.

Colliers has been exclusively appointed to offer Cromwell Industrial Estate to the market, with individual lots between 500sq m and 1,033sq m available to purchase in the first release.

Alastair Wood, Director at Colliers Otago, who is marketing the Estate in conjunction with colleagues Steve McIsaac and Marie Hendren, says it’s a game-changer for the area.

“While there appears to be a reasonable supply of industrial land in Cromwell, there is a significant lack of ready-to-build-on sites that are under 2,000sq m,” Wood says.

“Lot sizes in the new estate range from 500sq m to 3,000sq m with the bulk around the sought-after 500sq m-1,000sq m range. These lots will allow local trades to establish a base for their businesses while offering investors the opportunity to create investments as an alternative to residential properties. They could also be the catalyst for new businesses to establish and bring with them employment opportunities for the local community.”

Wood says the industrial sector remains a sought-after investment in the Otago region and nationwide, as investors gravitate towards ‘essential business’ tenants.

“Cromwell’s ‘up and coming’ status offers excellent value and growth potential as prices continue to rise in surrounding industrial precincts.”

McIsaac notes that Cromwell land values sit between $350-$500 per sq m with the upper end of the range applying to smaller sites or those that have exposure to high volume passing traffic. In nearby Wanaka, industrial land is now in excess of $500 per sq m, and in Queenstown it is over $1,500 per sq m.

“Cromwell Industrial Estate offers access to the highly sought-after industrial market, especially for smaller occupiers and entry-level investors who are often locked out due to rising land values. Cromwell is expected to see continued growth in the coming years; Colliers now have an office dedicated to servicing the area offering a range of professional real estate services,” McIsaac says.

“Cromwell is a much-loved destination in the Upper Clutha Valley, shown by its sustained growth in population, tourism and commercial expansion in the past decade. Located on the idyllic shores of Lake Dunstan with spectacular mountain views, the area has seen continued growth in the residential and lifestyle market for the past decade. The residential population is expected to continue to grow with projections showing an increase of over 20 per cent from 7,750 residents in 2018 to 9,450 in 2028.

“This growth is driving commercial activity, with significant development either underway or planned.

“Underpinning this growth is its central location, which is a natural distribution hub for servicing Queenstown, Wanaka and the wider Central Otago region.

“The government is supporting this growth by investing in infrastructure through the Provincial Growth Fund that includes an $8 million upgrade to State Highway 8B.

“The wider area offers many attractions including wineries, restaurants and bars, cycling and walking trails, alongside the growing motorsports presence off the back of the Highlands Motorsport Park and other adventure sports that the wider Otago region is known for.

“Cromwell Industrial Estate provides a superb opportunity to secure a spot in a future industrial hub while land prices remain within reach.”

An initial 10 lots will be marketed for sale by deadline commencing 12 August, closing Thursday 16 September (no prior offers accepted).


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Alastair Wood

Director | Commercial Broker | Sales and Leasing

Queenstown

Alastair is one of the most experienced property professionals in the Otago region, with over 25 years’ property experience in the Queenstown-Lakes, Wanaka and Dunedin districts. Building lasting relationships with his clients, he has a strong reputation for results, integrity and his strategic approach to bringing deals together to the satisfaction of all parties.

Specialising in investment sales of commercial property and development sites, Alastair also takes the lead in syndicated property sales and equity raises, introducing commercial investment to a wealth of new customers. He has worked closely over the last six years with Mitchell Mackersy in various equity raises for syndicated commercial investments. 

A director of Otago Realty (NZ) Ltd (a member of Colliers International Group), operating throughout the Otago and Southland regions, Alastair has also held various directorships in other property related entities including Maori Hill Property Ltd which now has in excess of $1 billion under management around New Zealand. He is a Fellow Member of the Real Estate Institute of New Zealand (REINZ) and a former Fellow Member of the New Zealand Institute of Valuers. Also a past chair and board member of Downtown Queenstown, which helped in the formation of the Queenstown Town Centre Master Plan.

Outside of the office, the father of three is a keen outdoorsman, taking advantage of Queenstown’s iconic landscape.

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Steve McIsaac

Commercial & Industrial Broker

Queenstown

Steve has over 22 years of knowledge and experience in the New Zealand property market, the last 10 years of which have been based in Queenstown, involved in the resort development and tourism sector.
 
Areas of specialisation include brokerage and consulting on tourism assets, along with development opportunities. Steve works in combination with Barry Robertson at Colliers International Queenstown, brokering and consulting on tourism assets and developments across the South Island.

Steve is a member of the Real Estate Institute of New Zealand (REINZ).

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Marie Hendren

Commercial Broker

Queenstown

With almost a decade spent working across a wealth of sales and operational functions in real estate, Marie’s an integral part of the property industry in Queenstown.

Marie’s real estate-focused career has given her rare insight into the factors underpinning a successful property transaction and a clear understanding of what makes a great customer experience. Unsurpassed attention to detail and a clear, friendly communication style mean every point of interaction with Marie is a good one. Her positive, pro-active approach to real estate and life is contagious, allowing her to bring both people and deals together. 

In her spare time, Marie enjoys the wonderful Queenstown outdoor lifestyle, in particular skiing, running and mountain biking.

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