The upcoming sale of a complex anchored by a leading wood products supplier in Christchurch’s Sockburn industrial area is tipped to attract keen interest from investors.
The more than one-hectare freehold site on Buchanans Road is fully leased to four established tenants, generating a total annual net rental return of $450,234 plus outgoings and GST.
The property is anchored by BBI Wood Products, which supplies a range of civil and commercial projects with products ranging from ply for acoustic dampening on roading developments to appearance-grade product for interior finishing.
The company distributes nationwide through building supply stores for the building industry, and supplies large industrial users such as the packaging industry directly.
BBI Wood Products pays an annual net rent of $273,625 plus outgoings and GST for its more than 3,000-square-metre Buchanans Road office/warehouse premises with a 1,300-square-metre sealed yard and five car parks.
The current lease runs through to 2026 with two further four-year rights of renewal. The lease agreement locks in two percent annual rental increases, replaced by market rent reviews at lease renewals.
Two Cycle Diesel Limited occupies warehouse premises of some 1,500 square metres with two car parks. Its tenancy generates a net rental return of $130,609 plus outgoings and GST per annum, on a current lease that runs through to 2026 with one further three-year right of renewal. A market rent review is due at renewal.
The balance of rental income is derived from smaller tenancies leased to EnviroWaste Services and roofing and flashing supplier Centrefold Flashings.
The freehold land and buildings at 37 Buchanans Road, Sockburn, Christchurch, are being offered for sale by Nick O’Styke and Sam Stone of Bayleys Christchurch.
The property will be sold by deadline private treaty closing on Friday 17 November.
The buildings of approximately 4,946 square metres sit on some 1.03 hectares of industrial-zoned land.
O’Styke said the property consisted mainly of warehouse space with a stud height ranging from 4.6 to 4.8 metres to the knee.
“Built in the 1980s, this versatile standalone industrial property benefits from a generous yard area and multiple container-height roller doors, providing cost-effective and honest warehousing that’s well-suited for a wide range of business uses.
“Fully-leased to four tenants, it provides a healthy diversified income stream, and with present rentals at historic rates, astute investors will recognise the property’s significant potential for rental growth.
“The building’s configuration allows for multiple tenancies and flexibility, which the current tenants have taken advantage of by taking additional space within the premises. Low site coverage with a generous yard area adds further to the versatility of the site,” said O’Styke.
Constructed with steel-portal frame structure and thick precast concrete walls, the property has an Initial Evaluation Procedure seismic rating of 80 percent-plus of new building standard.
Stone said the property sat between popular Waterloo Road and Buchanans Road. It was accessible from Buchanans Road via a right of way, and the large yard provided ease of manoeuvrability, he said.
“The site is strategically positioned in the heart of industrial Sockburn. This precinct is bound by the triangle formed by State Highway 1 in the west, Main South Road in the south and State Highway 73 in the north.
“The area offers easy access to Christchurch International Airport, Port of Lyttelton and Rolleston, as well as the Christchurch CBD, making it popular with many industrial businesses which have established themselves here.
“This is a tightly-held and popular location known for its low vacancy, which will underpin this hardworking multi-tenanted industrial investment and its potential for strong rental growth,” said Stone.