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 southwest of the Central Otago 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 1033sq m available to purchase in the first release.
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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 3000sq m with the bulk around the sought-after 500sq m-1000sq 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 7750 residents in 2018 to 9450 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).
-Article supplied by Colliers
