Five North Taieri properties with development potential for sale
Five properties in the growing business location of North Taieri, Dunedin, are on the market for sale through Colliers International.
The freehold properties, at 174 Dukes Road and Lots 1, 2, 3 and 8, 180 Dukes Road, Mosgiel, offer existing leases to high-profile tenants including Fonterra, as well as the potential to develop a large vacant land plot for industrial use.
They are for sale either individually or together, providing various investment and development opportunities, says marketing agent Dean Collins of Colliers International.
“It’s quite rare to have five properties come up for sale offering development potential as well as a great line up of existing tenants," he says.
"This will have great appeal for buyers looking to acquire the sites as a complete portfolio, as they offer a good income as well as the chance to build and lease a new industrial facility on the vacant site.
“We’re also expecting interest from buyers in purchasing one or more of the sites individually, as they’re ideal investment and development opportunities in a sought-after asset class.”
The vacant site, at 174 Dukes Road, is offered for sale by negotiation. It is the largest property in the group, providing around 17,500sq mof undeveloped industrial land.
The four other properties, each with a building on site, have land area of between 3,033sq m and 4,842sq m and are offered for sale at asking prices ranging from $300,000 to $1,850,000.
Of the four existing buildings, three are leased to Fonterra, Tracmap NZ and Honey Products NZ, generating approximately $277,000 a year in total annual rent.
The properties are on the market at a time when demand is high in the Dunedin industrial market, Collins says.
“We’re seeing strong demand among buyers for industrial investments at the moment, especially well-tenanted freehold properties. There is also still plenty of construction activity happening, which has been a trend over the past few years as business confidence has stayed high.”
180 Dukes Road was previously a freezing works complex, built in the early 1990s for meat processor Fortex. Following the closure of the works several years ago, the site was converted to the Silverstream Business Park, offering businesses an alternative industrial location to central Dunedin, says Collins.
“This is a developing location that offers businesses affordable freehold land which can be hard to find in central Dunedin. There has been quite a bit of development in the surrounding area lately which demonstrates its merits as an industrial business location.”
The sites offer good road transport links into central Dunedin as well as regional destinations around the South Island. Other businesses in the nearby area include Farmlands, Placemakers and PGG Wrightson Wool.
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