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News Release

Christchurch

Solid investment opportunity with Government tenant

JLL marketing 360 Cumberland St for sale


 

 

Historic Auckland landmark the General Building for sale/new-zealand/en-gb/news/851/historic-auckland-landmark-the-general-building-for-saleAucklandHistoric Auckland landmark the General Building for sale
Significant piece of industrial land for sale /new-zealand/en-gb/news/848/significant-piece-of-industrial-land-for-saleChristchurchSignificant piece of industrial land for sale

​​360 Cumberland Street small-min.jpg

JLL is marketing a freehold investment opportunity with long-term tenants in Cumberland Street, Dunedin. 

The property at 360 Cumberland Street comprises two 1950s buildings fitted out for office use, which have both been seismically assessed to at least 100 percent of the New Building Standard (NBS), along with a car parking building occupied by Wilsons parking. 

“In a time of uncertainty for many parts of the country, where investors in other cities are having difficulty securing funds and insurance, this 100 percent NBS building represents a solid investment,” JLL agent Chris Harding says. 

The office space provides a total lettable area of approximately 4,900 sqm whilst the parking building provides 270 spaces. The improvements are set on an 8,088 sqm corner site. The property is in 13 titles. 

“This is a rare opportunity to invest in a large scale tenanted investment property in Dunedin’s CBD,” Harding says. “Under the current District Plan the site is zoned Large Scale Retail, and has development potential in the future,” he says. 

“Dunedin City Council is currently in the hearings phase for its Second Generation District Plan, the decisions for which will be released in 2017. When that plan becomes operative, it may even be possible to make use of the airspace above and take this building up to three stories in height, as the site is in the CBD Edge Commercial zone with a proposed height limit of 16 metres.”

The building is occupied by Otago Polytech and the Ministry of Social Development. The two-level carparking building is partially leased to the office tenants while the remaining 209 are leased by Wilson Car Parking. 

All three of these occupiers are on nine-year leases which commenced in April 2013. Each has two rights of renewal of three years, with a final expiry date of March 2028. 

“The Ministry of Social Development has committed significant funds on fitting out this building, indicating their commitment to this location,” Harding says. 

“The property is currently generating income of more than $1m per annum for the owner,” Harding says. “It could be an ideal opportunity for small or large scale syndication, or perhaps investment by family trusts, high net worth individuals or funds.”

“The building has three street frontages, on Cumberland, Castle and St Andrew Streets, which means it has excellent exposure to passing traffic,” Harding says. “This is a premium location, just moments away from the Octagon and the Town Hall. 

“It’s a busy part of town in terms of passing foot traffic, as it is right next to the University of Otago, which leads the way in terms of the education performance of its 20,000 students. The property is also right beside Dunedin Hospital, which employs 3000 staff, and a short walk from the shopping areas in George Street. Cadbury World, one of Dunedin’s most popular tourist attractions, is next door at 280 Cumberland Street and there is a Countdown supermarket at 309 Cumberland Street.”

Dunedin is the second largest metropolitan area in the South Island of New Zealand after Christchurch, with the local economy being driven by the University of Otago and the rural distribution sector.

It is a compact city with a population of more than 127,000. Residents benefit from some of the most affordable housing in the country and rate the sense of community their city offers. In the 2014 Quality of Life Survey, 84 percent of Dunedin residents surveyed felt they had a positive overall quality of life. The City Council says the average travel time from key suburbs to the city at peak times is less than 15 minutes. The city also boasts more green space per person than any other city in New Zealand. 

Dunedin benefits from the strong focus on research and development that the University of Otago brings to the city. It is a youthful city, where 70.7 percent of the population are of working age (15-64).  That compares to 66.1 percent of New Zealand’s total population being of working age (Statistics New Zealand, 2012).

Tourism is increasingly making a significant contribution to Dunedin’s economy. For the year ending June 2016, the total guest nights rose by 4.3 percent when compared with the previous year. By comparison, the total guest nights for New Zealand as a whole rose 5.8 percent. 

The property is for sale by open tender, closing December 19.