A near-new industrial building in Dunedin that is home to a national brand tenant signed to a long-term lease presents buyers with the opportunity to acquire a premium passive investment.
50 Burns Street, Dunedin offers 3,204sq m of total net lettable area on a 11,761sq m site that is zoned Industrial 1 under the Dunedin City Council District Plan and is shown as being zoned Industrial under the Second Generation District Plan.
PlaceMakers is the tenant at the property, and they began a 10-year lease in July 2022 when the building opened. PlaceMakers has two further rights of renewal for six years each, leading to a final expiry of July 2044. The annual rental income from the property is $644,487 plus GST.
Many locals or rugby fans will know the location of the property as it sits on the former site of the famed Carisbrook sports ground.
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With nearly 50m of road exposure to Burns Street, the property also has 49 dedicated car parks and convenient access for customers, suppliers, and staff, as well as significant yard space. State Highway 1 is only minutes away, offering connectivity to the wider Otago region.
Colliers Otago Director Dean Collins has been exclusively appointed to sell the property via deadline private treaty closing at 4pm on Wednesday 7 June, unless sold prior.
The modern and functional property has a 377sq m office, 211sq m showroom, and a 743sq m trade hall. There is also 114sq m of canopies and the yard spans 6,853sq m, providing ample space for a range of vehicles and their respective requirements. The building was constructed in 2022 to the New Building Standard.
The showroom has been split in two, with one area specifically designed for PlaceMakers builders’ customers. With a high-end showroom feel, it features the latest plumbing, bathroom, kitchen, wardrobe, and heating range displays in a warm and comfortable environment. It even includes working displays, such as shower options.
The other showroom is dedicated to trade, with a tool shop, fastenings zone, safety store, hardware range, and a trade-focused paint, adhesive, and sealants area.
PlaceMakers is the trading name of Fletcher Distribution Limited, the retail trading arm of Fletcher Building Limited in New Zealand.
Collins says having the opportunity to acquire a prime premises with a blue-chip tenant like PlaceMakers will be highly appealing for buyers.
“PlaceMakers is New Zealand’s leading and largest supplier of building materials and hardware and previously operated out of a property in the nearby Portsmouth Drive for the past 25 years before moving to this stunning new building,” Collins says.
“With a lengthy lease in place with favourable terms, including fixed annual rental increases of 2 per cent and a market review on renewal with a 10 per cent cap and collar, the property shapes as a desirable passive investment that has considerable upside.”
Following the demolition of Carisbrook, this area of Dunedin has been developed by Calder Stewart with purpose-built properties for well-known tenants with PlaceMakers and Easysteel being the first completed at the site.
There’s a range of key infrastructure projects either on the horizon or underway in Dunedin, including the proposed $1.4 billion hospital build, a new ACC office building in the CBD, and the development of KiwiRail’s Hillside workshop, located moments from the subject property.
“This continued public and private sector investment in Dunedin bodes well for the city, which is showing positive signs of growth,” Collins says.
“The opportunity for buyers to secure a stake in Dunedin’s commercial property market through this compelling passive investment is one not to be missed and I encourage all interested parties to contact me immediately.”
- Article supplied by Colliers
