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Substantial industrial investment with well-known tenant on offer in Dunedin

Substantial industrial investment with wellknown tenant on offer in Dunedin

A large and prominent freehold site in Dunedin occupied by an established tenant is expected to appeal to a wide range of buyers searching for high-quality investment assets.

The property at 9 Chadwick Street in Fairfield, Dunedin comprises a total land area of 9,000sq m with a well-maintained, part purpose-built, redeveloped factory for tenant Tuapeka Gold Print that occupies a total net lettable floor area of 5,021sq m.

Tuapeka Gold Print originally purchased the property and then redeveloped and extended the building in 2015 to suit their requirements. Tuapeka then sold the property with an initial 10-year lease in place, plus two further rights of renewal of four years each, to the current owner in 2017. The final expiry of the lease is 31 January 2034.

The net annual rental income is $470,000 plus GST (if any) and outgoings, while the lease includes a fixed annual increase of 2 per cent with market reviews upon renewal.

Dean Collins, Director at Colliers Otago, has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Friday 3 September, unless sold prior.

“The property is well-positioned on Chadwick Street, which is off Main Road and part of an established industrial area of Dunedin,” Collins says.

“It is located near the new industrial development known as Cleveland Close and surrounded by other notable tenants such as Fulton Hogan, Otago Road Services, and Timber Direct, among others.

“The highly functional complex was originally constructed in 1970 and refurbished in 2015 following the arrival of Tuapeka Gold Print in the previous year.

“This site is located in a tightly held pocket of industrial land in Dunedin and the tenant is an icon of the Otago business landscape.”

Tuapeka Gold Print is Australasia’s largest in-house decorated supplier of branded promotional products (excluding apparel) and is one of the South Island’s great success stories.

It was founded in 1987 by Jim Robertson who printed business cards on the kitchen table in his family home in the small town of Lawrence before extending to pens, which became the backbone of the business.

By 1993, Tuapeka Gold Print was the largest supplier of branded pens in New Zealand, selling four million units.

After expanding into key rings and drinkware, among other promotional items, the business swelled to occupy multiple buildings in Lawrence, while employing a significant portion of the community.

Eventually, further expansion led the company to Dunedin to ensure their thriving enterprise could continue to deliver world-class printing and manufacturing.

“Opportunities to purchase sites of this scale with a fantastic tenant such as this do not come to the market often and when you consider there is a strong lease in place that provides security in cashflow, this is a must-see property for buyers to consider,” Collins says.

“Quality industrial property remains very scarce in the current market, with few options available for either lease or purchase and a lack of available development sites. Rents have been increasing across the market in response to this.

“Investor demand continues to remain high, with industrial properties seeming to be the preferred option for investors at present.”

The property is zoned Industrial 1 under the Dunedin City Council District Plan and is shown as being zoned Industrial under the Second Generation District Plan.

Dunedin is sitting in a positive position with several developments being planned or already in the works, including the proposed $1.4 billion hospital build, ongoing investment by the University of Otago, the new ACC office building on the Dowling Street carpark, plans for a new community hub in South Dunedin and a Central City/George Street upgrade.


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Dean Collins

Director | Commercial Broker

Dunedin

Specialising in commercial and industrial property since 2006, Dean’s local knowledge gives him an exclusive insight to one of New Zealand’s most tightly-held property markets and allows him to advocate on behalf of local and national clients for commercial and industrial properties of any size.

Following his studies at the University of Otago, Dean worked with an international property advisory company (DTZ), before joining the Colliers International team as a shareholder in 2009. From there he became an associate director of Colliers International in 2014, and then a Director in 2017.

In addition to his work at Colliers he is a committee member for the Property Council of New Zealand Otago chapter.

Having grown up locally, his familiarity with the region has enabled him to cultivate strong connections throughout the Otago and Southland regions that facilitate his ability to meet his clients’ respective needs. His areas of specialisation include sales and leasing of commercial, industrial and retail property, as well as developmental land sales.

As a broker he is results driven, with a track record to back it up, while the dynamism and enthusiasm he brings to his role have seen him quickly rise to become a leader in the regions property market. An avid outdoorsman, in his spare time Dean is a regular skier and mountain-biker.

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