Industrial Warehouse For Sale Offers Pipe Dreams For New Owner


The leasehold land and the building housing the Dunedin
branch of a world-wide industrial pipe and tube retailer
have been placed on the market for sale.

The property
at 68 Sturdee Street in Dunedin’s Harbourside Basin
Precinct industrial quarter is occupied by MRC Global – a
North American-based company with operations in 100
countries.

68
Sturdee Street Dunedin

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 occupied by MRC Global features some
410 square metres of warehousing, retailing space, and
offices, sitting on some 892 square metres of leasehold
land.

The leasehold land and building at 68 Sturdee
Street are now being marketed for sale by deadline private
treaty through Bayleys Dunedin, with offers closing on
October 21. Salesperson Muir Gold said the Sturdee Street
property sustained MRC Global’s 290-square metres of
warehouse showroom space, 50 square metres of office space
and staff amenities, an additional 70 square metres of
mezzanine level office and storage space, and came with 10
car parks for staff and customers.

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
seven-years, 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.

Surrounding industrial premises around the
MRC Global plant in Sturdee Street include roading and
infrastructure firm Fulton Hogan, refuse and rubbish
management company Waste Management, Steel & Tube,
Dunedin Stainless Steel and Ritchies Transport.

Gold
said the location’s dual entry and exit points allowed
easy access for heavy vehicles off both Sturdee Street and
Wickliffe Street – 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 Street site is zoned industrial under the
Dunedin City Council 2GP P.

Constructed in 1995, the
Sturdee Street 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, while the retail
showroom on the ground floor is also based on an open plan
aisle
format.

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