A prominently placed showroom and warehouse building on a high-profile corner site in Invercargill offers buyers of all kinds the opportunity to acquire an asset with a strong tenant covenant and future development potential.
3 Bond Place, West Invercargill has 1,407sq m of total floor area on a 2,539sq m site. The property lies within the Industrial Zone of Invercargill as defined by the Invercargill City District Plan 2019.
The property is occupied by Reece, a premium supplier of plumbing and bathroom products, who have been in business for more than 100 years and also supplies products to Australia.
The total net annual rental income from the property is $105,936 plus GST and outgoings. The lease agreement, which runs until July 2024 with one further right of renewal following that, also includes annual CPI increases, providing potential future rental growth for the new owner.
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Given the generous landholding, there is low site coverage, and the property has 15 car parks offering convenience for customers and suppliers as well as generous yard space.
Colliers Brokers Dean Collins and James Valentine have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 13 December, unless sold prior.
The lettable area of the property includes approximately 1,382sq m of showroom space and warehouse storage that is spread across the site.
The location of the property is considered a prime industrial hub in the city yet is close to the main arterial route that provides access to Invercargill Airport. The surrounding buildings are home to complementary trade, retail, and industrial businesses.
While sitting in an industrial area, the subject property is in walking distance to Invercargill Central, a major shopping development that has revitalised the CBD and brought numerous major retail brands to Invercargill.
Collins, Director at Colliers Otago, says the property sets up as a compelling investment opportunity.
"The established tenants have occupied the highly functional property since 2018 and it has proven hugely beneficial to their operations. The size of the building is attractive to occupants in the local area," Collins says.
"While the current tenancy agreement runs until 2024, there is one further right of renewal for two years meaning the owner could potentially have rental income locked in until 2026.
"The annual CPI increases are another key drawcard for buyers who will be attracted to the potential future rental growth."
Valentine, Commercial Sales and Leasing Broker at Colliers Queenstown, says given the rectangular shape of the site and notable low site coverage, a development angle could be explored in the future.
"There is plenty of room to grow on this prominent site that enjoys excellent street exposure and convenient access," Valentine says.
"While the short-term plans for the new owner may revolve around enjoying the passive income on offer, those with a long-term view for the property could construct a significant development or repositioning in the future."
This is an outstanding purchasing opportunity with considerable growth potential.
Article supplied by Colliers
