Industrial vacancy levels remain tight in the wider Christchurch market with warehousing still in high demand from a range of occupiers, and investors still circling for quality stock to acquire.
These factors underpin the value proposition of nine tenanted and individually-titled units in a sought-after Sockburn business park, to be auctioned on behalf of the Renwick family who have owned the units since construction in 2006.
Graeme Donaldson and Bill Kingston of Bayleys Canterbury sold similar units last year, with strong enquiry coming from established investors, family trusts and buyers starting an industrial portfolio, and have been appointed to sell this portfolio down as separate lots.
The properties are known as Units 1-9, 4-6 O’Briens Road, with Units 1-7 to be auctioned individually, and the more modestly sized Units 8 and 9 to be combined as one lot.
Located within the established and proven Enterprise Business Park on the western side of Christchurch between O’Briens Road and Epsom Road in Sockburn, the units benefit from good arterial connections with the CBD, areas to the south and north of the city, and the airport.
The functional high-stud warehouse/office units have generous allocated car parking, and dual access from O’Briens and Epsom Roads to accommodate larger truck and vehicle movements.
Construction of the northwest-facing units comprises mainly tilt slab panels with portal frames and the NBS rating has been assessed at 72 percent of new building standard.
Donaldson said Sockburn has been favoured by investors, owner-occupiers, and tenants post-earthquakes due to the locational advantages with easy streamlined access into the CBD, and he’s confident that the interest already fielded on the subject units will translate to results come auction day on March 14.
“These units are accessible, enduringly popular with occupiers and represent good buying for cashed-up investors – and potentially, owner-occupiers who may see opportunity to ride out a shorter lease term before occupying the property themselves,” he said.
Each of the units has a car park allocation, with a total of 135 parks across the nine properties, and varying lease terms apply to each unit, with most having built-in rent reviews and renewal rights.
High-profile Unit 7, a 1,541sqm warehouse/office unit with 39 car parks, is the largest of the offerings and is home to community service provider The Chris Ruth Centre Trust, infrastructure firm McConnell Dowell Constructors Limited, and private training providers AMS Group Limited trading as Axiom Training (in receivership).
Unit 1 comprises a total building area of 1,085sqm with warehousing, ground and first-floor offices plus 21 car parks, and also has three tenants: wholesale fuel company NPD, land development and residential housing company Enterprise Homes, and accounting and auditing firm Allott Reeves & Co.
Religious group Light of all Nations Ministry Trust occupies Unit 2, with 763sqm of combined warehouse, ground and first-floor offices and 17 associated car parks, while Unit 3 is home to New Zealand yarn business, Crucci NZ Limited with a lease across 527sqm comprising warehouse, ground and first-floor offices, along with five car parks.
Long-established manufacturers NZ Cleaning Supplies Limited occupy Unit 4 with 530sqm of space across warehouse, ground and first-floor offices and 10 car parks, and Unit 5 is a 521sqm warehouse/office unit – also with 10 allocated car parks – with the tenant being underfloor heating specialists Warmth NZ Limited.
Similarly-sized with 10 car parks, Unit 6 is a 528sqm warehouse/office unit and it is occupied by Wesfarmers Industrial & Safety NZ Limited, supplier of industrial, safety and workwear products.
Units 8 and 9 will be sold as one lot and offer 266sqm (combined) space with 10 car parks, with tenants being the popular Corner Café that caters to the wider business park, and facility services provider Aotea National Services Limited.
Bayleys agents in the Christchurch industrial leasing and sales markets expect continued good demand for existing industrial property from buyers and tenants given a slow pipeline of forward new stock and signalled interest rate reductions this year.