Well-located Christchurch industrial portfolio in demand
3, 4, 6, 7, 8, 10 and 12 Paragon Place and 26-32 Waterloo Road, Sockburn, Christchurch
- Portfolio of eight fully-leased, separately titled standalone industrial investment properties with a total land holding of 9,360m²
- Industrial General zoning
- All buildings brought up to 67% NBS by the vendor post-quake
- A range of warehouse, showroom and factory buildings with amenities, offices, yards and car parking
- Rental return of $455,600 p.a. plus GST and OPEX
- Redevelopment site currently utilised as a car yard
- National Total Property marketing campaign with auction sale method
- SOLD individually with a combined sales value of $7,132,500 with yields ranging from 6.3% to 7.5% on the land and building offerings; 4.5% for the redevelopment site ($387.50/m2)
- 7 sold on auction day; 1 sold unconditionally the following week
- Purchasers were mainly Christchurch-based investors
This well-located portfolio of eight fully-leased and separately-titled industrial investment properties was offered to the market for the first time by Campbell Taylor and Craig Edwards of Bayleys Canterbury.
Located in the heart of Christchurch’s western industrial belt, the tilt slab concrete buildings provide a high standard of industrial accommodation in a range of size configurations, while the prime corner development site which runs across three titles, offers a great add-value opportunity for the new owner.
“While the yields attained were not exceptional due largely to shorter lease terms, the market recognised the inherent opportunity to secure smaller, standalone warehouse and yard investment properties in this sought-after location,” explains Campbell.
“Hats off to the vendor for the meticulous upkeep on the properties over the years.
“The development has an enviable reputation for historically low vacancy levels and this translated into successful sales at the conclusion of the marketing programme.”
Spokesperson for the vendors, businessman and builder Paul Renwick, says Team Bayleys was “a machine” in selling the eight properties.
Paul built the industrial properties from 1995 through to the mid-2000s and owned the land and buildings with his siblings.
Having brought them all up to 67% NBS after the earthquake, Paul says it was the optimal time for the family to capitalise their assets.
“I’m really proud of these properties and spent a lot of time and money bringing them up to new code,” he says.
“The Paragon Place-Waterloo Road location is fantastic and I have retained two other properties at the end of the street for the family joinery business so I’m still invested in the area.”
Paul says the properties have always been fully tenanted and he knew they’d appeal to private investors looking under the $1 million threshold.
“It was rewarding to see seven out of the eight sell on auction day, and then the last one negotiated post-auction,” he says.
“Campbell Taylor and the Bayleys’ team were faultless from their first communications and presentation right through the whole process to auction day and beyond.
“I’m a stickler for detail, professionalism and good communication in my own business and the Bayleys team was a machine – 100 percent success rate and everything they said they would do, they did.”
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