Mail-processing centre sold to local investor

New Zealand Post's Strathallan St mail-processing centre in South Dunedin. Photo by Gerard O'Brien.
New Zealand Post's Strathallan St mail-processing centre in South Dunedin. Photo by Gerard O'Brien.
New Zealand Post has sold its Strathallan St mail-processing centre in South Dunedin to an unnamed local investor.

The freehold industrial zone 1 site, near the corner of Strathallan St and Andersons Bay Rd, went on the market in early March.

Its sale, which is unconditional, was settled on Friday. Colliers' manager for commercial and industrial sales and leasing, Dean Collins, said when contacted there had been local and overseas interest in the site and multiple bids.

''While there was significant out-of-town interest, it was a local private investor who bought it.''

The land and buildings have a capital value of $5.25 million, with the purchase price for the 17-year-old building being ''around'' the capital value figure, he said.

About 70 jobs will be lost at the centre when all processing is shifted to Christchurch, but Mr Collins understood New Zealand Post was looking at bringing some other aspects of its operations to the large Strathallan St premises; 4600sq m of buildings on 8300sq m of land.

New Zealand Post has a nine-year lease in place, plus rights of renewal, with annual lease costs of almost $420,000.

-simon.hartley@odt.co.nz

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