Handy for projects in the pipeline
The leasehold land and the building housing the Dunedin branch of a world- wide industrial pipe and tube retailer are on the market .
The property at 68 Sturdee St in Dunedin’s Harbourside Basin Precinct industrial quarter is occupied by MRC Global — a North Americanbased company with operations in
Tenant MRC Global has been in the pipe and tube retailing sector for 99 years and, in addition to the Dunedin branch, has New Zealand locations in Auckland, Hamilton, New Plymouth, Wellington, Christchurch and Invercargill.
The corner site Dunedin property features 410sq m of warehousing, retailing space, and offices, sitting on some 892sq m of leasehold land.
The leasehold land and building at Sturdee St are now being marketed for sale by deadline private treaty through Bayleys Dunedin, with offers closing on October 21. Salesperson Muir Gold said the property sustained MRC Global’s 290sq m of warehouse showroom space, 50sq m of office space and staff amenities, an additional 70sq m of mezzanine- level office and storage space, and came with 10 car parks.
MRC Global currently has a lease on the property running through to
2025 with two further five- year rights of renewal, generating net rental income of $ 37,765 plus GST per annum and with market- linked rental reviews regularly scheduled throughout the terms. The property has an annual ground rental of $ 16,056 plus GST per annum for the next sevenyears, with the ground lease running through to 2041.
The head lease on the property is owned by Chalmers Properties Ltd, which has just assigned a new 21- year ground lease to the site. Ongoing ground lease renewals run in perpetuity. Otago Regional Council and its subsidiary land administration company Chalmers Properties Ltd own vast tracts of land in the Harbour Basin Precinct.
Industrial premises around the MRC Global plant include roading and infrastructure firm Fulton Hogan, refuse and rubbish management company Waste Management, Steel & Tube and Dunedin Stainless Steel.
Gold said the location’s dual entry and exit points allowed easy access for heavy vehicles off both Sturdee St and Wickliffe St — the main arterial route to the Harbourside Basin Precinct. Included in the building’s chattels is a heavy- duty gantry crane used for loading and rack stacking MRC Global’s selection of weighty steel piping.
“The high roller door within the warehouse portion of the building, along with good yard space outside, allows an efficient free- flowing traffic movement system to be utilised — which delivers greater customer efficiencies for the tenant and their business,” he said.
“With considerable construction projects in the pipeline in and around the Harbour Basin Precinct — such as the new hospital and the refurbishment of many older premises — the Sturdee Street location works well for MRC Global and the products it sells.”
Gold said Dunedin’s Harbour Basin Precinct was the city’s main industrial quarter and linked well to the all of the city’s arterial routes. The leasehold Sturdee St site is zoned industrial under the Dunedin City Council 2GP P.
Constructed in 1995, the Sturdee St building is constructed on a concrete floor pad, with tilt- slab walls, steel beam framing, and full height sloping roof with Perspex panelling inserted along the roofline to allow for natural lighting.
The office space within the ground level and mezzanine portions of the building is predominantly open plan,