In Dunedin an investment property is for sale and leased to PGG Wrightson Wool, which operates a wool store on the site, in the growing business location of North Taieri.
The freehold property, at 176 Dukes Rd, is being marketed by Dean Collins of Colliers International, and is for sale by deadline private treaty closing on December 8.
Collins says the property is adjacent to the Silverstream Industrial Park, which previously operated as a freezing works complex originally owned by meat processor Fortex.
"The area is growing in popularity among occupiers and investors due to the affordability of land compared with central Dunedin," he says.
"Because of the scarcity of freehold land in central Dunedin we've seen North Taieri develop quickly as an alternative location. There has been quite a bit of development in the surrounding area in recent times which demonstrates its increasing popularity for industrial occupiers."
The 19,122sq m site encompasses an 11,780sq m warehouse and office building, part of which is a new addition. PGG Wrightson Wool holds a 10-year lease which commenced in December 2013, generating net rent of $467,060 a year. Rights of renewal could extend the lease to 2043.
PGG Wrightson Wool is New Zealand's leading wool broker and handler. The company handles and markets about 350,000 bales annually, exporting wool to manufacturers and spinners worldwide and holding direct supply contracts with wool growers. PGG Wrightson Wool operates three other processing centres around New Zealand in Napier, Christchurch and Invercargill.
Collins says the property is on the market at a time when demand is high in the Dunedin industrial market.
"We're seeing strong demand among buyers for industrial investments, especially well-tenanted freehold properties. There is also still plenty of construction activity happening, which has been a trend over the past few years as business confidence has stayed high."
The property is near Taieri Airfield on the northern side of the Mosgiel residential area. This surrounding industrial area was expanded around a decade ago when further land opposite the property was rezoned for industrial use to facilitate the growth of Dunedin's industrial sector.
The area has been dominated historically by Fisher and Paykel, which sold its property to Fonterra. The dairy giant has since undertaken a significant amount of development, including adding large cool stores, a new rail service and numerous industrial storage facilities.
The property has good vehicle access and road transport links into central Dunedin as well as regional destinations around the South Island. Other businesses in the nearby area, in addition to Fonterra, include Bremca, Farmlands and Placemakers.