A newly built dual tenancy A-grade warehouse in Rolleston’s IPORT Business Park has come to the market for sale, giving investors or owner-occupiers cost-effective entry to the well-performing precinct.

The property at 20 Factory Drive, Rolleston, in the Selwyn district was a speculative build and sits on a 1,250sqm freehold title zoned Business 2A. The building is conventional in layout, making it adaptable for a range of business users and offers a total of 630sqm space with clearspan high-stud warehousing, container height electric roller doors, LED lighting throughout, modern air-conditioned and sunny office space, plus staff amenities.

Tenancy 1 comprises a 337sqm warehouse with 65sqm office, while tenancy 2 provides a 190sqm warehouse plus 35sqm office. The property has a 22sqm canopy, a heavy-duty concrete yard area to the road front and three marked car parks.

Nick O'Styke and Sam Stone of Bayleys Christchurch are handling the sale on behalf of the developer, with offers and enquiries over $1,750,000 plus GST, if any, sought.

Given the current costs of land and construction, O’Styke says the property represents solid value.

“You couldn’t replicate it for the same quality or price in the current market. There’s always strong demand for quality industrial warehousing that can flex to a range of business needs, and this property has a really attractive office-to-warehouse ratio,” he says.

“The subject property is being sold with vacant possession, but a rental appraisal suggests a potential rental rate of $107,620 per annum. Bayleys has recent sales evidence to support buyer activity in the IPORT precinct and wider Rolleston, with leased properties seeing yields of circa-6 percent.

“Investors or owner-occupiers will recognise the practicalities and efficiencies of the building, whether it’s ultimately used as straight out warehousing, a trade base, a satellite premises, or a service-based facility.

“Rolleston has low outgoings and is a good place to do business. An astute owner-occupier could potentially look to occupy part of the property while clipping the income from the remaining warehouse/office tenancy, which the bank would be happy to see, while an investor can look to leverage tenant demand and split the income risk across the dual tenancies.”

IPORT is a $500 million business park on 122 hectares of prime industrial-zoned land at Rolleston, and is the key transport hub for Canterbury, with more than 90 percent of the region’s exports transiting through the precinct, with O’Styke saying local, national and multinational companies see real value in the location.

“News that global cold storage firm Lineage has secured consent to develop a new facility on 7ha site adjacent to MidlandPort is indicative of the operational efficiencies IPORT has for operators,” he says.

“As a location, it just makes sense, with streamlined access to State Highway One just one of the benefits.

“20 Factory Drive will enable a buyer to get a jump on the next real estate cycle, which industry commentators agree is imminent.”