The scoreboard stand foundations being demolished at
Carisbrook yesterday. Photo by Gerard O'Brien.
Dunedin's usual shortage of freehold industrial land will
be eased with the redevelopment of former rugby stadium
Carisbrook and a more than $5 million woolshed development at
Carisbrook's new owner Calder Stewart has not released
details of the redevelopment nor filed any building consents
applications with the Dunedin City Council, but is understood
to be having ''multiple sites'' for industrial trade use.
In Colliers International's latest annual report on
industrial land investment, research manager Chris Dibble
said Auckland and Christchurch continued to provide most of
the sector lift with record low yields, rising leasing
activity, rental rate appreciation and growing land
''Holding back the sector has been an abundance of secondary
space and the absence of robust activity outside of the main
regions or distribution hubs,'' Mr Dibble said.
He said the shortage of freehold industrial land in Dunedin
would be relieved by the redevelopment of Carisbrook's 3.06ha
of industrial 1 zoned land, which was sold for $3.3 million
earlier in the year to construction company Calder Stewart.
''The stadium is currently being demolished with plans to
provide multiple sites for industrial trade use,' Mr Dibble
He said around Dunedin top-tier prime premises providing the
best location, business efficiency and seismic strength
remained popular for tenants and landlords, but that was
counterbalanced by the ''lacklustre performance'' in the
secondary tier of the sector.
''Some secondary premises are reaching their economic life,
which will impact the health of the overall sector if there
is no course of action to refurbish or redevelop,'' he said.
Ground lease rents in the city were continuing to rise, which
was placing pressure on net rental rates. Mr Dibble said net
prime warehouse rents were ''holding steady'' at between $60
sq m and $90 sq m within the inner city, while there was a
slight discount in the outer areas of Kaikorai Valley and
He said two land sales, with one premises in Mosgiel
completed and Carisbrook soon to be under construction,
provided some buoyancy to the market, which has experienced
more turnover than expansion recently. In Mosgiel, Scales
Corporation will complete a new woolstore this year.
Mr Dibble said it would reportedly be sold to a syndicate for
about $5.4 million, with annual rental at about $450,000, on
a full net lease to agri-services company PGG Wrightson.