A prominent fully-tenanted retail and office building on a strategic 951sqm Dunedin CBD corner site, has been placed on the market for sale.
Located at 100 George Street at its corner with Moray Place, the building is the recognised home of the central Dunedin branch of BNZ and shares the busy inner-city intersection with ANZ and Westpac – hence the moniker “bankers’ corner” often given to this junction.
At a time when nationwide demand for investment properties with a strong tenant covenant is high and the supply, low, Robin Hyndman of Bayleys Metro Dunedin said the property offers robust credentials.
“This is a modern-looking, north-facing building with a striking street presence, and it is expected to garner plenty of attention from local and out-of-town passive investors looking to acquire a well-performing Dunedin property with sound fundamentals and split-risk returns.”
The 3,090sqm three-level fully-leased property has been owned by private South Island investors since 2003 and the group now wishes to release its capital. It has a 100-percent seismic rating and is zoned Central Business District under the District Plan and Central Activity Area under Proposed District Plan (2GP).
“This property was built in 1982 with BNZ as its anchor tenant and has enjoyed strong occupancy with a mix of retail and office tenants since,” Hyndman said.
“BNZ remains on the site and currently occupies 1,466sqm with its main Dunedin retail banking branch and chamber on the ground floor and its support offices and BNZ Partner centre facilities on the first floor.
“The balance of the space is taken by retail and office tenancies with a barber, nail technician, restaurant and café on the ground floor, and QBE Insurance occupying the remaining office suites on the upper floor.
“The building also has underground car parking and basement storage space.”
The property has a net income of $506,437 per annum plus GST, and the six tenants are on varying lease terms with rights of renewal.
Hyndman said he would expect the property to mesh with the investment goals of family trusts, syndicates, and high net worth investors who recognise the inherent value of centrally-located commercial premises with in-built flexibility and prominent corner positioning.
“There is a lot of local money circulating currently and there have been some significant sales recently to Dunedin-based investors.
“With a shortage of commercial stock in many other parts of the country, and investors actively chasing return on investment, I expect enquiry from all around New Zealand on this property.”
Hyndman said quality, tenanted property in George Street could command a five-percent yield and although the banking sector had faced some headwinds due to changing patterns of use and technology, the building stands on its own two feet as a desirable property regardless of tenant mix.
“Dunedin is in the fortunate position of having a Council that is protective of traditional retailing along the “high street” and resisting mall developments elsewhere in the greater city, which maintains the integrity of the CBD to a large extent,” he said.
“This philosophy helps to underpin the value of this offering as an asset with broad appeal – now, and into the future.”
The subject property is less than 100 metres away from the new central city bus hub in Great King Street, and close to the Octagon, the library and Town Hall, and the Dunedin City Council administrative offices.
The property at 100 George Street, Dunedin will be sold by Deadline Private Treaty closing Wednesday, 2nd June (unless sold prior).