Force to be reckoned with in Hornby
24 Gallagher Drive, Hornby, Christchurch
- Land area, 7,482m²
- 9m stud clear span warehouse and office facility with a floor area of 3,500m²
- Building completed late 2015
- 55 car parks
- Built to 100% of new building standard
- Leased to Seed Force Limited on a 10-year lease from December 2015
- 2 x 6 years right of renewal
- National Total Property marketing campaign by Deadline Sale method
- SOLD at a 6% yield
- Genuine interest from around 30 people during the campaign
- 9 written offers were received by the deadline date
- Sold to a Wellington-based high net worth investment partnership
Robust growth in the Canterbury region on the back of high levels of business confidence and a well-performing local economy means that favourably-located and high-specification industrial property is prized among investors.
Nick O’Styke of Bayleys Canterbury says sometimes you don’t get a second chance at a first-class opportunity. When the vendors of 24 Gallagher Drive were presented with nine written offers, there could only be one eventual buyer.
“Investors know it when they see a superior property and the targeted campaign for the Gallagher Drive property really brought out the upper end of the industrial investment buyer pool,” says O’Styke.
“Having a strong lease covenant to a well-established and highly-regarded tenant was a bonus, however the property had particularly sound fundamentals given its pedigree.”
The building was constructed by reputable and long-standing Otago firm Calder Stewart, whose track record in the construction and development sector around New Zealand is legendary.
While designed for the incumbent tenant, Seed Force, a leading Australasian wholesale proprietary seed company formed though a local Joint Venture with the global giant RAGT, the warehouse facility is future-proofed for many years to come, being 9m high to the knee, complete with a generous canopy, concrete apron and three large container-height doors.
The property’s location in the sought-after Hornby Quadrant industrial business park, will soon be further enhanced by its high profile exposure to the Southern Motorway extension which is now under construction.
One of the property’s owners, local businessman Bruce Garrett, says the time was optimal to sell.
The property was purpose-built 2 ½ years ago for Seed Force and it’s been a well-performing property in a high-demand location.
Garrett says since it was constructed, the property has received a lot of investor attention.
“From day one, there was strong market interest in the property and as owners, we were receiving direct enquiry from potential investors,” explains Garrett.
“It’s always beneficial – as owners – to have competition between prospective buyers and that led us to list with Bayleys.”
Garrett applauds Bayleys’ professional, timely and clearly-articulated sales plan which all came together to achieve a great result.
“It’s fair to say that together we achieved an outcome that exceeded expectations,” Garrett says.
“We’d be very happy to recommend Bayleys and our agent, Nick O’Styke, to other prospective vendors.”
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