Investors warm to EcoChill industrial premises for sale
The modern premises housing a pioneering New Zealand provider of sustainable commercial refrigeration solutions have gone up for sale in a central Christchurch industrial location.
The versatile warehouse and office property in sought-after industrial Sydenham is home to the Canterbury service hub of EcoChill.
Founded in 2000, Kiwi-owned and operated EcoChill is a leader in natural refrigeration solutions and the development of zero-emission cooling technology. It specialises in delivering temperature and humidity-controlled environments, from packaged units to turnkey solutions, that meet business’s environmental and performance goals. Headquartered in Auckland, the company has service hubs in Waikato, the Bay of Plenty and Christchurch.
The property for sale on Kingsley Street, Sydenham, is fully leased to EcoChill on a current lease that runs through to 2029 with two further six-year rights of renewal.
The lease generates an annual net rental return of $164,000 plus outgoings and GST, with built-in 2.5% annual rental growth plus market rent reviews every three years.
The freehold land and building at 37 Kingsley Street, Sydenham, Christchurch, are being offered for sale through Nick O’Styke and Anna Morawiec of Bayleys Canterbury.
The property will be sold by deadline private treaty closing on Thursday 7 March, unless it is sold prior.
The approximately 1180 square metre building sits on more than 2000sqm of freehold land with onsite parking for 18 vehicles.
O’Styke said the functional, high-stud warehouse spanned more than 1000sqm with a container-height roller door and an approximately 60sqm canopy. This was accompanied by some 130sqm of modern office and staff amenity.
“The original factory was constructed with concrete floor slab and precast concrete walls, supported by steel portal frames with central columns, with the office and amenities added in 2007. With strengthening works completed, the structure has an Initial Evaluation Procedure seismic rating of 100% of new building standard.
“A large secure front yard allows for ease of access and manoeuvrability, adding further to the site’s versatility.
“The property and tenant enjoy excellent profile with around 40 metres of frontage to one of Sydenham’s most popular streets,” said
O’Styke.
Morawiec said one of the site’s key attractions was its central location in the sought-after area of industrial Sydenham.
“Sydenham is close to the city centre and the amenities of Colombo Street and handy to main arterial roads enabling easy access across other parts of the city,” she said.
The property for sale forms part of the Industrial General zone under Christchurch’s district plan.
“This zone in Sydenham serves as a prominent industrial hub with a diverse range of properties. These provide space for the likes of medium to large-scale manufacturing, warehousing and distribution centres.
“The suburb’s commercial sector offers a mix of corporate offices and consulting firms contributing to the professional landscape, while retail spaces, cafes, restaurants and boutique shops attract residents and visitors,” Morawiec said.
A 1960s building in Sydenham that was home for many years to the Christchurch Operatic Society, is set to go under the hammer on March 27 at Colliers in Christchurch.
The niche ‘as is where is building’, at 253 Colombo Street, is being marketed by Courtney Doig and Marius Ogg. With a floor area of 490 sqm, it sits on 787 sqm of land in the tightly held suburb of Sydenham.
Adjoining the corner of Angus Street, the building consists of a single level structure, with former mezzanine areas and generous car parking. It is currently a near clear shell.
“This is a unique opportunity for astute investors, owner occupiers or developers to purchase an add value property in a sought after, growth location,” Ogg said.
“Sydenham is undergoing strong residential growth and repurposing of old industrial premises for new uses, making it an increasingly desirable area. It’s only just over two kilometres south of the CBD, close to the main arterial of Brougham Street, and surrounded by great amenities, including The Colombo shopping centre to the north.”
The building was designed and built for the Operatic Society to use as their rehearsal and performance space from 1967 to 1997. Since then it has been used for several commercial activities including an office and maintenance workshop and also as a temporary preschool for 30 children.
It was subsequently sold to a developer who had Resource Consent for backpacker and retail accommodation but a change of plan saw it bought by church group Trinity South Christchurch Property Trust in 2018.
With strong demand for high profile land and add value projects, Doig said this is a blank canvas to either undertake one of the planned repairs for the existing structure, start afresh with a new proposal or demolish and build new. Engineering and design work by the current owners have brought the building up to 100% of NBS.
Doig said the current owners have spent considerable time over the past three years on a design for a church/community centre. Their plans included a 220-seat auditorium, a foyer/lobby area with commercial kitchen of around 160sqm, the same amount of office space upstairs, and five onsite car parks.
“The design brief was to provide a building with flexibility of use so the front section/and or upstairs could be sublet for offices with their own access and toilets. The building could even incorporate retail or a café/restaurant in the front section and warehousing at the rear with the correct resource consents,” Doig said.
The sale would include fully consented plans and detailed strengthening designs with an extension on start date of February 7 next year.
“This is a such sought-after suburb. Last year I sold a former Post Office along the road at 148 Colombo Street. It was heavily contested with multiple offers. Similarly, we negotiated a nearby building on the corner of Barrington and Milton that attracted two dozen inspections,” Doig said.
Zoned Residential Medium Density, the site is subject to a proposed zoning change to Medium Density Residential, providing more flexibility for the future.