Former Dunedin coolstore a hot property

The building at 130 Portsmouth Drive, Dunedin was originally a coolstore facility. Photo / Supplied

A vacant, freehold and rare industrial property next to the Edgar Centre in Dunedin, where most of the surrounding land is leasehold, is for sale 'as is, where is'.

"This sale opens up an excellent opportunity for industrial owner occupiers and developers," says Dean Collins, director, Colliers International, who is marketing 130 Portsmouth Drive for sale by deadline private treaty closing on March 15, unless it sells earlier by negotiation.

"It also has a great profile on a busy arterial road," Collins says. "These factors are highly sought after and we're expecting interest from businesses looking to move as well as developers."

A 3240sq m building, which was originally constructed in the 1980s as a coolstore facility, occupies the 8428sq m site.

"The site's visual profile is one of its key advantages. It is a corner site on the corner of Teviot St and Portsmouth Drive, which is one of the main routes into and out of the Dunedin CBD.

"The property also has a big frontage to Portsmouth Drive of more than 100 metres, along with three vehicle access points and plenty of on-site parking.

"With the occupier moving on, the property is being offered vacant and could appeal to industrial businesses looking to secure a large building in a prime Dunedin location," says Collins.

"The building on site could suit a number of businesses looking for a new location in a high-profile spot. The building could be redeveloped or replaced by a new owner occupier to suit their own requirements," he says.

The property is expected to be in demand among developers, given the large appetite among businesses for modern, quality industrial facilities in Dunedin.

"Demand outweighs supply at the prime end of the industrial market at the moment, with a lack of suitable premises," says Collins.

"As a result, we're seeing more businesses missing out on prime industrial space and reluctantly staying put.

"Others are investigating new-build opportunities as business confidence grows, although it is difficult to find suitable sites in the central industrial areas, especially freehold sites which are always keenly sought after."

He says options available to developers could include constructing a new, high-specification industrial or trade facility, and leasing it to a business looking for new premises on a prime, main-road location in central Dunedin.

The location, known as the Southern Endowment industrial area, has continually been popular among industrial occupiers.

In recent years, some sites have been redeveloped for trade retail uses, with occupiers including Bunnings, Mitre 10 Mega, Placemakers, Mico and Turners Car Auctions - alongside more traditional industrial and logistics businesses.

Dean Collins, Colliers International