A strategically-located Christchurch industrial property is for sale and given a number of potential scenarios for buyers, agents said it presents a compelling opportunity in a tightly-squeezed market.
There’s an identified shortage of industrial-zoned property in Christchurch and the wider region, with developers scrambling to have land rezoned to cater for demand from tenants and owner-occupiers.
Any new stock will take some time to come to the market for lease or sale and the well-documented lack of supply – particularly of warehousing – underpins the relevance and appeal of the property at 10 Settlers Crescent, Ferrymead.
With a total landholding of 4,763sqm Industrial General-zoned land available, the vendors would consider various options.
This includes the sale of the whole site and its existing buildings to one buyer; portioning off and selling 2,455sqm which contains the buildings and either negotiating lease terms with the current tenant, or negotiating vacant possession; and selling the balance as a bare land developable site.
This provides opportunity for both owner-occupiers and investors to leverage the locational advantages of the property.
The 2,455sqm parcel supports buildings of around 1,358sqm comprising a clear-span high-stud warehouse with dual roller door access, well-appointed office and staff amenities, mezzanine space, and double garaging, with 10 on-site car parks.
Owned by an entity associated with current occupier Maiden Group Limited, a sale and leaseback arrangement could return potential net annual income of $149,145pa plus GST and outgoings for an investor.
Alternatively, an owner-occupier could negotiate a staged exit by Maiden Group from the site.
The property’s well-maintained buildings have a seismic rating of up to 67 percent NBS.
Long-running construction company Maiden Group has multiple subsidiaries and has worked on numerous repair, rebuild and renovation projects around Canterbury post-earthquakes, along with new builds in the commercial and residential sectors including popular tiny homes.
Its business operations are well-entrenched on the Ferrymead site, which works well as headquarters for the multi-faceted company.
The property is being marketed for sale by deadline private treaty closing 4pm, Thursday 13th April, unless sold prior, by Alex and Stewart White of Bayleys Canterbury.
Alex White said the property owners would consider any and all offers on the property in either totality or portions thereof and says as a pure investment, or an owner-occupier option, it represents a relatively-rare opportunity with demand-supply dynamics exceedingly tight in the industrial market.
“Industrial remains the preferred sector for investors around the country right now on the back of ecommerce trends, the active logistics and distribution segment, and continued demand for occupiers for well-located space with ease of access.
“Clear-span warehousing in Canterbury is in really short supply, so a property such as this which ticks all the physical property attributes and has the advantage of a sound leasing overlay provided by a respected tenant on attractive lease terms, is clearly going to find favour with investors.”
White said there remains good investor appetite for well-located and tenanted commercial and industrial property, despite some market headwinds.
“Lenders are looking for returns to underpin investments in the current environment, which is seeing some softening of cap rates and fluctuating interest rates.
“The appeal of this property as a straight-out investment lies in its strong fundamentals and its proven tenant covenant, and given potential rental growth, we’re expecting solid enquiry to translate into a good result for all parties.”
Located just off Ferry Road which is the main arterial main to suburbs like Sumner, and in close proximity to State Highways 74 and 76 providing streamlined access to Lyttleton Port and the southern motorway, Settlers Crescent is a u-shaped precinct with a range of industrial, office and trade-related businesses.