Cricket, anyone? Grassy strip going cheap
A pocket of industrial land that resembles a cricket pitch is one of the more unusual industrial sites to come to market in recent years in Christchurch.
Hazards include Transpower’s pylons that run the property’s length at 20 Cable St, parallel to Blenheim Rd on one side and McAlpine St on the other.
The auction reserve is $79,000 for the 13,734 square metres – or $5.75 per sqm, compared with the $200/sqm to $400/sqm for industrial land in Sockburn on the western outskirts.
The oblong, which is 20 metres wide, is zoned commercial mixed use but comes with extensive covenants and easements. Transpower last year sold similar land in Princess St, Addington.
Colliers International broker Oliver Salt said he was fielding a good number of inquiries for the April 12 auction.
‘‘We think it lends itself to yard options and general storage but any potential buyers would need to do their due diligence.’’
Recent developments in the immediate vicinity include the new 14-hectare Central Business Park and the Wigram Business Park, both of which are sold out.
The nearby Waterloo Business Park has sold 77 per cent of its developed 114ha land and is now home to 50 businesses with about 1000 employees in total.
JLL property researchers have reported an overall industrial vacancy rate of about 6 per cent, with 226sqm available out of total stock of 3.6 million sqm.
Expansion in the sector has tapered off since 2016 with little speculative building in favour of purpose-built developments, which is reflected in the falling number of building consents.
There was enough land supply to service the market for a number of years, especially when land to the north at Belfast was included, JLL said.
A recent sale of NPT’s 17 Print Place was below book value at $8.25 million on a yield of 13.1 per cent, reflecting higher risk, and at a time when most well-tenanted properties are selling at yields between 6 per cent and 7 per cent.
The management of NPT was recently taken over by Aucklandbased Augusta Capital, which has been selling down NPT’s properties.
Prime industrial rents in Christchurch have softened from $132/sqm to $128/sqm and secondary rents from $95/sqm to $92/sqm. JLL predicted that over the next year tenanted properties will continue to sell but vacant buildings may be slower to move and rents may fall further.
Meanwhile, Salt said there was still potential for the sale of ‘‘as is, where is’’ properties, especially among owner-occupiers.
A freehold corner industrial site at 63 Buchan St in Sydenham will test the ‘‘as is, where is’’ market at the auction on April 12. It is a mix of warehouse, office and work room on land area of 420sqm, with the building covering 195sqm.
Salt said a modern industrial property at 443 St Asaph St recently sold at auction for $1m, representing a 7 per cent yield.