A Christchurch commercial building tenanted by a business within an industry thriving as a result of the earthquakes has been placed on the market for sale.
Located at 37 Mandeville Street in the suburb of Riccarton in Christchurch, the commercial building sits on a high-profile site on the fringe of the CBD.
The property has been placed on the market for a deadline sale, through Bayleys Canterbury salespeople Stewart White, Chris Frank and Nick O’Styke, with offers closing on December 4.
The building is tenanted by Home Ideas Centre – a business showcasing products and services from leading home building and renovating brands – which has traded successfully on the site for 27 years.
More than 100 exhibitors are currently located within Home Ideas - leasing spaces ranging from 2-60 sqm. Exhibits range from kitchen and bathroom designs, to living areas, laundries and outdoor living suppliers. As wells as exhibiting home products such as appliances, furniture, flooring, windows, and pools, the company also offers a range of services such as architects, builders, painters and designers.
Thousands of homes were destroyed and damaged in the earthquakes that have shaken the region since 2010. Outside the residential red zone, more than 10,000 houses are likely to require rebuilding or to need significant repairs, according to Statistics New Zealand. More than $3.9 billion worth of building consents were issued in Canterbury between September 2010 and December 2012 and billions more will be consented as the rebuild continues over the years ahead.
This has driven increasing demand in the city for building tradespeople and for businesses that provide goods and services for home renovations, said Mr White.
“This industry has experienced a boom because of the number of people rebuilding their houses since the earthquakes. The tenant provides a one-stop-shop for house owners looking to create or recreate their dream home.
“As a result of this, the tenant has already signed up for another eight years – taking the current lease through until October 2022.”
Under the existing terms the tenant has an eight-year right of renewal. Contract rental is $530,000 plus GST.
“There is a severe shortage of good quality investment commercial properties for sale in a central location and fewer tenanted by a business in a flourishing industry, so this building will appeal to a large range of potential investors,” said Mr White.
The 2,212 sqm, Business 4-zoned building is made up of a ground floor reception, showroom and display area, and offices and conference centre. There are 23 customer car parks on site.
Surrounded by other related businesses, close to Riccarton Mall and the Tower Junction Centre, the property is close to Riccarton and Blenheim Roads, which have strong traffic flows in both directions.
“Mandeville Street and the surrounding area is popular for this type of business, with a number of other companies associated with the building trade located nearby so the property is ideally suited to a tenant of this nature,” said Mr White.
The building has had significant upgrade work including an extension to the northern side of the showroom in 2006.
Planning of earthquake strengthening work is underway to bring the property up to 67 percent or higher of the new building standards. This work will be carried out at the vendor’s expense. Completion dates are still to be confirmed and the tenant has been kept fully informed throughout the process, said Mr White.
“This is a superbly presented property with a first class tenant. The sale of 37 Mandeville Street represents an opportunity for a buyer to take over a tenanted building in a sought after location.”
The building at 37 Mandeville Street is for deadline sale with offers invited before December 4.
For further information about 37 Mandeville Street, contact Bayleys Canterbury salespeople Stewart White on 027 478 8944, Chris Frank on 027 280 6449 or Nick O’Styke on 027 696 9801