Port buys strategic land by railway station for $8.1m
PrimePort Timaru has bought all five industrial buildings on the opposite side of Timaru's railway station for $8.15 million.
The strategic purchase of the 2.1 hectares of land and buildings on Hayes St will have no immediate effects on the wool, palm kernel and Timpak crate-storing tenants.
But chief executive Phil Melhopt said PrimePort did see potential for redevelopment of part of the area in the near future.
The distinctive southern sheds were built in the early 1900s - the first was built in 1910 - and the area has primarily been used for the storage of wool, with Pyne Gould Guinness and Dalgety among past tenants.
But there are also modern storage facilities on the land including a 4000 square metre shed with a private railway siding built in 2001 for milk powder storage.
The only building on the western side of Hayes St that PrimePort does not pick up in the deal negotiated with previous owners Port Dairy Stores Timaru is the Front Store on the Port Loop Rd corner.
Melhopt said the transactions would be finalised in June.
"This is one of the largest continous offerings of real estate in Timaru in recent times and it's right next door to the port," he said.
"It's prime strategic land and we wanted control of it to ensure it supports the port and associated port industries."
Melhopt said there were six tenants occupying a total of 17,239 square metres of floor space.
"There's an empty yard area and with some of the old buildings there are some immediate development opportunities that we can look into," Melhopt said.