A portfolio of industrial assets in Mosgiel are available for purchase and will catch the attention of buyers seeking premium industrial investment opportunities in a high-growth area.
The Taieri Business Park, which has been developed by Mainland Capital, is in Tarakihana Drive and the properties at Nos 1, 3, 4, and 5 are being sold.
1 Tarakihana Drive is a modern industrial building that spans 2,509sq m and is home to ASX/NZX-listed tenant Vulcan Steel. The neighbouring property at No 3 is a greenfield development landholding spanning 4,212sq m.
Rockgas, New Zealand’s largest LPG retailer, leases 4 and 5 Tarakihana Drive and has invested heavily into the development of the location to allow for future growth across the two sites.
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The freehold properties are available for purchase in one line or individually.
The portfolio has a weighted average lease term of 12.4 years, providing investors with stable long-term income with the added benefit of future development upside.
The total estimated annual rental income from the tenanted properties is $745,111 plus GST.
Mosgiel is a satellite town of Dunedin and sits approximately 15 minutes from the Dunedin CBD.
The broader North Taieri area, where the subject properties are located, has experienced significant growth during the past decade and the area is home to major occupiers, including Fonterra, PlaceMakers (Frame & Truss), Farmlands, and PGG Wrightson Wool.
The next phase of growth for the area is the proposed inland port development by Port Otago that would be a transformational infrastructure project that would reshape the logistics network of the region, enabling goods to move efficiently by rail to the port.
It would also drive demand for warehouse, logistics, and support services in Dunedin.
The properties are zoned Industrial 1 zone as per the Dunedin City Council District Plan.
Dean Collins, Director at Colliers Otago, has been exclusively appointed to market the properties for sale via deadline private treaty closing at 4pm on Thursday 6 November, unless sold prior.
The complex tenanted by Vulcan Steel was completed in 2023 with an extension added a year later.
The prominent structure sits on a 9,912sq m landholding and has a large-scale warehouse with supporting office and amenities space as well as a sealed yard.
Vulcan Steel’s 12-year lease began in May 2024 and two further rights of renewal of six years each provides a final expiry in May 2048. Their lease agreement provides three-yearly market rent reviews.
Rockgas commissioned the development of their tanker parking facility at 4 Tarakihana Drive, which spans 5,551sq m.
They later added their regional gas depot at the adjoining site, which is in the final stages of construction and includes purpose-built offices, a depot shed for offloading and refilling gas bottles, and a concrete stand housing a large above-ground LPG storage tank, along with associated amenities, concrete yard, and on-site parking.
With completion expected in December, Rockgas will begin a new 15-year lease with future rights of renewal available.
Collins says the tenanted properties are underpinned by a strong tenant covenant.
“The current tenants are household names that have made a commitment to this rapidly expanding location through signing lengthy lease agreements that include future rental growth through market reviews,” Collins says.
“Investment opportunities of this calibre are keenly sought by investors but rarely found, making this an offering that warrants serious consideration from discerning buyers.”
Meanwhile, the greenfield development site is the last lot available for sale within the Taieri Business Park.
“This site provides an enticing combination of a vacant land parcel alongside two well-established tenants, which if purchased as a portfolio, provides buyers the flexibility to futureproof their investment.
“The spare section presents a prime opportunity for expansion, development, or leasing, making it ideal for owner-occupiers, investors, or developers.”
- Supplied by Colliers
