Rare Cromwell industrial investment opportunity

A new industrial estate in Cromwell is bringing much-needed industrial land supply to the burgeoning region and offering owner-occupiers and investors a rare opportunity to secure land in a high-growth location.

Cromwell Industrial Estate is a carefully considered development that will comprise 29 sections on 4.8 hectares to the southwest of the town centre.

The Estate is being developed by Central Otago District Council with strategic planning recognising the need for additional industrial land to meet the demands of Cromwell’s current business community and substantial projected growth.

Colliers has been appointed to offer Cromwell Industrial Estate to the market, with individual lots of between 500 sqm and 1,033 sqm available to purchase in the first release.

Alastair Wood, Colliers Otago Director who is marketing the estate in conjunction with colleagues Steve McIsaac and Marie Hendren, says it’s a game-changer for the area.

“While there appears to be a reasonable supply of industrial land in Cromwell, there is a significant lack of ready-to-build-on sites that are under 2,000 sqm.

“Lot sizes in the new estate range from 500 sqm to 3,000 sqm with the bulk around the sought-after 500sqm - 1,000 sqm range. These lots will allow local trades to establish a base for their businesses while offering investors the opportunity to create investments as an alternative to residential properties. They could also be the catalyst for new businesses to establish and bring with them employment opportunities for the local community.

Wood says the industrial sector remains a sought-after investment in the Otago region and nationwide, as investors gravitate towards ‘essential business’ tenants.

“Cromwell’s “up and coming” status offers excellent value and growth potential as prices continue to rise in surrounding industrial precincts.”

McIsaac notes that Cromwell land values sit between $350 - $500 per sqm with the upper end of the range applying to smaller sites or those that have exposure to high volume passing traffic. In nearby Wānaka, industrial land is now in excess of $500 per sqm, and in Queenstown, it is over $1,500 per sqm.

“Cromwell Industrial Estate offers access to the highly sought-after industrial market, especially for smaller occupiers and entry-level investors who are often locked out due to rising land values. Cromwell is expected to see continued growth in the coming years; Colliers now have an office dedicated to servicing the area offering a range of professional real estate services.

“Cromwell is a much-loved destination in the Upper Clutha Valley, shown by its sustained growth in population, tourism and commercial expansion in the last decade. Located on the idyllic shores of Lake Dunstan with spectacular mountain views, the area has seen continued growth in the residential and lifestyle market for the last decade. The residential population is expected to continue to grow with projections showing an increase of over 20 per cent from 7,750 residents in 2018 to 9,450 in 2028.

“This growth is driving commercial activity, with significant development either underway or planned.

“Underpinning this growth is its central location, which is a natural distribution hub for servicing Queenstown, Wānaka and the wider Central Otago region.

“The government is supporting this growth by investing in infrastructure through the Provincial Growth Fund that includes an $8m upgrade to SH 8B.

“The wider area offers many attractions including wineries, restaurants and bars, cycling and walking trails, alongside the growing motorsports presence off the back of the Highlands Motorsport Park and other adventure sports that the wider Otago region is known for.”

“Cromwell Industrial Estate provides a superb opportunity to secure a spot in a future industrial hub while land prices remain within reach,” says Wood.

An initial 10 lots will be marketed for sale by the Deadline date commencing 12 August 2021, closing 16 September 2021 (no prior offers accepted).