A nine-storey office and retail tower in the heart of Dunedin’s CBD will pique the interest of a wide range of buyers looking to acquire a prime asset with good holding income and future growth potential.
43 Princes Street, Dunedin, known as Evan Parry House, sits on 495sq m of freehold land and provides 2,720sq m in total net lettable area, while being located on the doorstep of the city’s famous Octagon.
Four of the eight office floors have existing tenants, while one of the two ground floor retail tenancies is occupied, providing a combined gross annual rental income of $260,509 plus GST but there is a range of value-add options available to grow this figure.
The property comes with 16 car parks and offers 20m of road frontage to Princes Street, ensuring exceptional visibility to foot traffic and the high volume of passing vehicles.
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The property is zoned Central Activity Zone under the Dunedin City Council District Plan and is shown as being zoned Commercial and Mixed Use under the Second Generation District Plan.
Dean Collins, Director at Colliers Dunedin, has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 5 May, unless sold prior.
The eight highly functional office floors all have 298sq m of floor space and youth counselling provider Aroha ki Te Tamariki Trust - Mirror Services leases Levels 4, 7, and 8 on three-year terms. They also lease three car parks.
The Otago Foundation Trust Board leases Level 5 plus two car parks on a one-year agreement that commenced in February, leaving Levels 1, 2, 3, and 6 vacant.
On the ground floor, Savoury Japan leases 112sq m of space on a three-year term that began in July 2021. The vacant retail space spans 224sq m.
Collins says Colliers’ 2021/2022 market outlook for Dunedin notes the low supply of rental options in the CBD office market for both prime and secondary space.
“Rental rates are forecast to grow in the future as the constrained supply continues to impact the market in Dunedin. There is considerable demand for prime office space in the CBD,” Collins says.
“The market data indicates that Dunedin has been a strong performer in the commercial real estate sector with yields tightening year-on-year since 2017, while the total value of commercial and industrial sales has grown significantly in the past three years to 2021.
“The subject property offers a range of options to buyers who will be able to maximise the use of the vacant floors and add value to the site, while enjoying the existing holding income on offer.”
Collins says the strategic location of the property will be highly appealing for prospective purchasers who will recognise the value of this prime spot with Dunedin set for major infrastructure investment in the future.
“The property is strategically located in a central position in Dunedin’s CBD with favourable proximity to many other established commercial office buildings, including the recently renovated Forsyth Barr House, Burns House, the Civic Centre, Otago House, and Bracken Court, among others.
“Dunedin is sitting in a very positive position with a number of developments being planned or already in the works, including the reported $1.4 billion hospital build, ongoing investment by the University of Otago, the new ACC office building, plans for a new community hub in South Dunedin, and further central city upgrades.”
- Article supplied by Colliers
