Tarbert Street investment fully leased to PGG Wrightson
A solid commercial investment property in Alexandra, leased to a national tenant, is on offer through Colliers International.
The high-profile site at 85-87 Tarbert Street has good street frontage and is fully leased to PGG Wrightson, offering investors an excellent location and high-quality tenant covenant, says Mark Simpson, Director at Colliers’ Queenstown office.
“This property is in a highly visible position in Alexandra. When it comes to the key investment fundamentals of location and tenant, this property offers investors an affordable and well-appointed package.”
The property sits on two freehold titles with a combined area of 2,024sq m on the edge of Alexandra’s CBD, on the main arterial route east.
It is being offered for sale by deadline private treaty closing at 3pm on Thursday 9 August, unless it is sold prior.
The single-storey building has a lettable floor area of 939sq m, a seismic rating of more than 95 per cent NBS, and was extensively upgraded in 2018.
It includes a well-presented open plan office space, retail area, showroom, warehouse, mezzanine and amenities. There is also a loading area and 300sq m of yard with generous car parking provided on site.
PGG Wrightson holds a three-year lease from 1 November 2017, with three further rights of renewal for three years each, giving a final expiry date of 31 October 2029.
The annual contract rental, of $108,000 per annum plus GST and outgoings, has two-yearly rent reviews.
With the demand for well-tenanted commercial property having strengthened over the past few years nationally and locally, the property is expected to attract good interest from passive investors, says Simpson.
“In this environment, properties like 85-87 Tarbert Street, with its strong fundamentals and a national tenant, are very hard to come by and are often snapped up by investors when they hit the open market.”
Simpson expects the building to appeal to a variety of buyers including local commercial property owners, rural sector investors looking to diversify into off-farm assets, and buyers from further afield including Dunedin, Christchurch and the North Island.
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