Top tenants with five Dunedin industrials

This property at Dukes Rd, Mosgiel, is leased to Honey Products NZ. Photo / Supplied

Five properties with high profile tenants are for sale in the growing business location of North Taieri, Dunedin including some leased to Fonterra and Honey Products NZ.

"They are for sale either individually or together, providing various investment and development opportunities," says marketing agent Dean Collins of Colliers International, who is marketing them for sale by negotiation.

The freehold properties, at 174 Dukes Rd and Lots 1, 2, 3 and 8, 180 Dukes Rd, Mosgiel, also have the potential to develop a large vacant land plot for industrial use.

"It's quite rare to have five properties come up for sale offering development potential as well as a great line up of existing tenants," Collins says. "This will have great appeal for buyers looking to acquire the sites as a complete portfolio, as they offer a good income as well as the chance to build and lease a new industrial facility on the vacant site.

"We're also expecting interest from buyers in purchasing one or more of the sites individually, as they're ideal investment and development opportunities in a sought-after asset class."

The vacant site, at 174 Dukes Rd, is for sale by negotiation. It is the largest property in the group, comprising around 17,500sq m of undeveloped industrial land. The four other properties, each with a building on site, have land areas of between 3033sq m and 4842sq m and are for sale at asking prices ranging from $300,000 to $1,850,000.

Of the four buildings, three are leased to Fonterra, Tracmap NZ and Honey Products NZ, generating about $277,000 a year in total annual rent.

"We're seeing strong demand among buyers for Dunedin industrial investments at the moment, especially well-tenanted freehold properties," Collins says. "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 at 180 Dukes Rd was previously a freezing works complex, built in the early 1990s for meat processor Fortex.

Collins says that, following the closure of the works several years ago, the site was converted to the Silverstream Business Park, offering businesses an alternative industrial location to central Dunedin.
"This is a developing location that offers businesses affordable freehold land which can be hard to find in central Dunedin. There has been quite a bit of development in the surrounding area lately which demonstrates its merits as an industrial business location."

The sites offer good road transport links into central Dunedin as well as regional destinations around the South Island. Other businesses in the nearby area include Farmlands, Placemakers and PGG Wrightson Wool.