One of the biggest chunks of commercial real estate located on the fringe of Dunedin’s central business district – and adjacent to the city’s education hub – has been placed on the market for sale.
The huge 7,913 square metre site encompasses five separate adjoining titles between Anzac Avenue and Harrow Street. Combined, the five properties generate an annual revenue of $408,200 plus GST.
Because of their configuration, the five individual titles are being sold as one entity, comprising:
• 53 Anzac Street – where a 2,100 square metre building is leased through to 2020 to shop fit out design and build firm Miller Creative.
• 79 Harrow Street – where a light industrial-use premises is leased to Otago Polytechnic through to 2019 as a workshop.
• 83 – 87 Harrow Street – where the ground lease brings in $29,872 per annum. The property sustains three student flats.
• 89 – 91 Harrow Street – containing a four-bedroom house, and 30 storage units let on a monthly basis.
• 93 Harrow Street – encompassing a 250 square metre warehouse.
The single block portfolio is being marketed for sale by tender through Bayleys Dunedin, with tenders closing on August 2. Bayleys Dunedin director Robin Hyndman said the block was strategically located between Dunedin’s CBD and Forsyth Barr Stadium, and was flanked by the city’s hospitality, university and polytechnic precincts.
Mr Hyndman said the sites were worth more as one combined lot than they were individually. He added that there were very few landholdings of this scale available so close to the city centre.
The land is zoned industrial 2 under Dunedin City Council’s district plan – with the potential that the classification could be amended to a residential 3 zoning.
“The very flexible zoning rules recognise that the land may have numerous uses. Such is the central location that the site could continue in its industrial use, or may be better served utilising its immediate proximity to the university and polytechnic as a residential development,” Mr Hyndman said.
“Alternatively, because of its location, the site could be developed into a more intensive and modern accommodation facility – expanding halls of residence options for the university and polytechnic some 500 metres away, with the potential to have some boarding amenities potentially allocated as a nurses’ home – with the hospital sited 500 metres away in the other direction.”
Mr Hyndman said that because of the site’s walking distance proximity to both Dunedin city centre and the Forsyth Barr Stadium, it would be the ideal location for a much-needed four or five-star hotel.
“With two access points off separate roads, the configuration of a hotel within the property would allow easy entry and exit traffic flows for tour group buses,” he said.
“The multiple and varied tenancy schedule would deliver sizeable holding income while the necessary council consents are obtained for any development of this sort. That’s attractive for developers.”
Mr Hyndman anticipated any interest in a hotel development option would most likely come from offshore or Auckland-based investors, while a conversion into halls of residence style accommodation would prove an attractive option for Dunedin-based investors.
“Other commercial uses such as offices or retail tenancies are a possibility and I understand are being explored by some parties who have expressed an initial interest in the site,” he said.
“Because of the size of this landholding, a commercial development would allow for the option of building ‘business park’ type complex of several blocks or towers.
“Ample car parking spaces would be catered for because there is so much land and the dual road entry points. Of course, the location’s immediate proximity to Dunedin CBD would be a benefit for any new business tenants whose clientele emanates from this sector, and for public transport links for staff.”