A large and prominent freehold site in Dunedin occupied by an established tenant is expected to appeal to a wide range of buyers searching for high quality investment assets.
The property at 9 Chadwick Street in Fairfield, Dunedin comprises a total land area of 9000sq m with a well-maintained, part purpose-built, redeveloped factory for tenant Tuapeka Gold Print that occupies a total net lettable floor area of 5021sq m.
Tuapeka Gold Print originally purchased the property and then redeveloped and extended the building in 2015 to suit their requirements. Tuapeka then sold the property with an initial 10-year lease in place, plus two further rights of renewal of four years each, to the current owner in 2017. The final expiry of the lease is 31 January 2034.
The net annual rental income is $470,000 plus GST (if any) and outgoings, while the lease includes a fixed annual increase of 2 per cent with market reviews upon renewal.
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Dean Collins, Director at Colliers Otago, has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Friday 3 September, unless sold prior.
“The property is well-positioned on Chadwick Street, which is off Main Road and part of an established industrial area of Dunedin,” Collins says.
“It is located near the new industrial development known as Cleveland Close and surrounded by other notable tenants such as Fulton Hogan, Otago Road Services, and Timber Direct, among others.
“The highly functional complex was originally constructed in 1970 and refurbished in 2015 following the arrival of Tuapeka Gold Print in the previous year.
“This site is located in a tightly held pocket of industrial land in Dunedin and the tenant is an icon of the Otago business landscape.”
Tuapeka Gold Print is Australasia’s largest in-house decorated supplier of branded promotional products (excluding apparel) and is one of the South Island’s great success stories.
It was founded in 1987 by Jim Robertson who printed business cards on the kitchen table in his family home in the small town of Lawrence before extending to pens, which became the backbone of the business.
By 1993, Tuapeka Gold Print was the largest supplier of branded pens in New Zealand, selling four million units.
After expanding into key rings and drinkware, among other promotional items, the business swelled to occupy multiple buildings in Lawrence, while employing a significant portion of the community.
Eventually, further expansion led the company to Dunedin to ensure their thriving enterprise could continue to deliver world-class printing and manufacturing.
“Opportunities to purchase sites of this scale with a fantastic tenant such as this do not come to the market often and when you consider there is a strong lease in place that provides security in cashflow, this is a must-see property for buyers to consider,” Collins says.
“Quality industrial property remains very scarce in the current market, with few options available for either lease or purchase and a lack of available development sites. Rents have been increasing across the market in response to this.
“Investor demand continues to remain high, with industrial properties seeming to be the preferred option for investors at present.”
The property is zoned Industrial 1 under the Dunedin City Council District Plan and is shown as being zoned Industrial under the Second Generation District Plan.
Dunedin is sitting in a positive position with several developments being planned or already in the works, including the proposed $1.4 billion hospital build, ongoing investment by the University of Otago, the new ACC office building on the Dowling Street carpark, plans for a new community hub in South Dunedin and a Central City/George Street upgrade.
- Article supplied by Colliers
