Christchurch warehouse, solid tenant
A Christchurch industrial property housing a leading New Zealand supplier is for sale. The modern warehouse and office premises lie in the heart of the Wigram industrial precinct in southwest Christchurch. The freehold property at 10 Hammersmith Drive is leased to a privately owned Canterbury company trading for over 30 years. The tenancy will provide a new owner with net rental income of $246,130 plus outgoings and GST per annum. Its new six-year lease comes with two further six-year rights of renewal, as well as annual CPI rental increases, with market reviews at renewal.
The land and buildings are being auctioned on Thursday, July 1, through Bayleys Christchurch. Salespeople Nick O’Styke and Harry Peeters said the 1907 sqm building sits on approximately 2850 sqm of freehold land.
‘‘The rectangular site has a wide frontage of about 40 metres to Hammersmith Drive, plus a secure yard and generous on-site parking for 30 vehicles,’’ O’Styke said. ‘‘It also benefits from a right-of-way easement along the northern boundary. Built in 2008 by leading contractor Calder Stewart, this is a modern A-grade industrial building whose favourable warehouse-tooffice ratio makes it attractive for a wide variety of uses and tenants.’’
The building features a modern, high-stud warehouse of around 1470 sqm with two roller doors and two canopies; a well-presented office split over two floors, with a reception, separate offices, boardrooms and a kitchenette, totalling about 370 sqm. The first-floor space includes a balcony. The building has an Initial Evaluation Procedure seismic rating of 75 per cent of new building standard. The site forms part of the Industrial Heavy Zone under Christchurch’s district plan.
Located about 7km southwest of the city centre, Wigram has grown significantly in recent years due to housing developments.
Peeters said the industrial precinct in the suburb’s east was highly sought after. ‘‘Tenant demand is high and vacancy low. Recent sales of industrial properties in Wigram and surrounds have seen yields for buyers ranging from 4.5 per cent to more than 6 per cent.’’
Neighbours include logistics firms, building and construction suppliers and transport and automotive businesses.
‘‘Positioned on the east side of Hammersmith Drive, close to Wigram Road, the site benefits from proximity to major road and rail transport routes, including excellent motorway access,’’ said Peeters. ‘‘A property of this quality, in this location, with a strong lease covenant to a long-established business and built-in rental growth, is an exceptional investment opportunity.’’