Despite tightened lending conditions there remains a shortage of industrial investment stock in Christchurch, with agents saying if they could conjure up additional well-located, well-leased property with robust seismic credentials, buyers would be happy.
Industrial business parks around wider Christchurch are all-but full, with little additional stock in the immediate pipeline.
This dynamic underpins the value equation of a fully-leased modern, split-risk investment asset at 3 Avenger Crescent, Wigram in the Ngāi Tahu-developed Wigram Business Park.
The 1,661sqm freehold corner site is zoned Industrial General which provides for a wide range of business uses,.
The 890 sqm (more or less) building offers a mix of warehousing, showroom, office and amenity space across two levels, plus a sealed landscaped yard providing 18 allocated car parks.
The property is for sale via Bayleys with an asking price of $2,750,000 plus GST if any.
Purpose-built in 2015-2016 as a multi-tenancy investment by the vendor, Sam Stone of Bayleys Christchurch says the property is at 100 percent new building standard, has enjoyed a strong leasing history and has four established tenants on varying lease terms.
“This post-earthquake build has been a reliable investment for the vendor and is pivotally-located on a corner site which provides smart profile and signage opportunities,” he says.
“It’s a good-looking building and is surrounded by other recently-developed properties for a wide range of national and international occupiers.”
Stone says the offering would appeal to well-resourced private investors or family trusts looking to optimise returns rather than keeping money in the bank, and underscored by the high seismic rating.
“While deposit interest rates have risen, any investment needs to be viewed through an inflation-adjusted lens,” says Stone.
“Long-run industrial property returns have outpaced other asset classes and given the underlying fundamentals of this well-maintained building on a large corner site in a premium industrial business park, it’s a box ticker for investors that are not contingent on funding and seeking to buy now.”
Each of the four tenancies was designed to be an attractive and efficient work environment with natural light, air-conditioned offices, insulated roofing in the warehouses, and with signage rights.
The property returns an annual net rental of $146,800 plus GST across the four tenant leases, with some rights of renewal included beyond current terms.
The two larger tenancies are occupied by supplier of pumps, fans and electric motors Argon Distributors, and signage business Signage Systems, with electronics company Guitar Builders Online and energy software solutions provider Onyx Services in the two smaller premises.
Stone says there is some identified rental uplift for a new owner.
“A rental assessment acknowledges growth potential of over 10 percent in the years to come once existing leases roll over, which is good news for buyers.”
Wigram Business Park lies to the west of Christchurch and has efficient and easily-accessed transport connections to the central city, Lyttelton Port and State Highway 1 via Hornby.
The Wigram area supports a mix of manufacturing, storage, logistics, distribution and service industries, with the subject property’s zoning allowing for a wide range of business uses including technology, warehousing, trade supplies, and food and beverage.