PWC Centre sells for $60m
An equity investment company has paid $60 million for the PWC Centre, the second-largest office building transaction ever seen in Christchurch, according the broker, Savills New Zealand.
The PWC Centre at 60 Cashel Street opposite the Bridge of Remembrance in central Christchurch, was sold to Maat
Consulting Limited by Singaporeowned Grand Central (NZ) Limited, with the sale price representing a yield of 5.6%.
Savills New Zealand managing director Ryan Geddes, who brokered the off-market sale with colleague Jesse Paenga, said this is also the third sale of a large office building in the city in 2020, proving that the city is considered a serious investment destination that competes strongly with Auckland for attracting capital.
‘‘Three major office assets changing hands for around $200 million in total in the space of nine months is unprecedented in Christchurch and follows a few years of subdued transaction activity in the high-value office property market,’’ Geddes said.
In September, the Manawa building at 10 Oxford Terrace was sold to an individual investor for $76m and in January, the Vodafone building at 213 Tuam Street was sold to a local investment syndicate for $59m.
Despite disruptions due to the Covid-19 lockdown, Savills has received significant interest in quality Christchurch office stock, demonstrating the vast amount of investment capital seeking placement at the moment, Paenga said.
‘‘Christchurch is now firmly on the radar of institutional investors, high net worth
individuals and syndicators currently looking for commercial property assets. One of the stronger drawcards is the favourable yield margin Christchurch offers over comparable assets in Auckland.’’
The Christchurch office property market has also displayed improving fundamentals over the past year which is likely to be another reason behind the recent flurry of large sales, said Geddes.
‘‘We’ve seen a decrease in vacancy rates in the office market, as well as rents stabilising and some rental increases forecast. We also have high-quality, new buildings available with long leases and strong tenant covenants. This all adds up to improving office fundamentals which are catching the attention of investors seeking better returns than those available in Auckland.’’
The PWC Centre provides 7864sqm of office space across six levels with net annual rent amounts over $3.3m and 100 car parks.