$4 million premises for CHEP operation

CHEP New Zealand will shift into new premises being built at this Sturdee St site. Photo by Linda...
CHEP New Zealand will shift into new premises being built at this Sturdee St site. Photo by Linda Robertson.

Construction is under way on a $4 million office and warehouse development for CHEP New Zealand in Dunedin.

CHEP, which provides pallet, container and crate pooling services, will move into the Sturdee St premises in late November, relocating from Strathallan St.

An extensive search of property options was undertaken by Chep's Sydney-based property consultants before the decision was made to partner with Port Otago's property subsidiary Chalmers Properties Ltd, Chalmers general manager David Chafer said.

The property comprised 200sq m of office, 1152sq m of warehouse and a 384sq m canopy on a 4658sq m site, while the new pallet and container centre would process 640,000 pallets a year.

Chalmers has subdivided the 7570sq m site, with the remaining land on its own title for future development.

CHEP was keen to be located in the industrial precinct in an area where it could operate 24-hours a day, while Chalmers was pleased to ''kick off'' a significant brownfield redevelopment, Mr Chafer said.

The site was previously occupied by Transfield Services and the buildings were demolished to enable the redevelopment.

It was hoped other building owners in the area would look to redevelop their sites with new industrial developments to benefit the city's economy, he said.

Chalmers is relocating Ray White from Filleul St to a 400sq m ground floor tenancy of its office building in Wharf St in February next year, after an internal upgrade.

The company awarded Cook Brothers Construction the job of building new 400sq m retail premises in Auckland, to be leased to an Anytime Fitness Gym franchise on a 10-year lease term.

The tenancy would be the first of three planned building additions to Chalmers' $20 million bulk retail property in Ronwood Ave, Manukau.

Work was expected to be completed by the end of February next year.

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