Buyers target Christchurch
Buyers have been active in the Christchurch commercial property market, with significant recent sales including a premium CBD office asset and the last of Gough Group’s remaining property assets.
Anderson Lloyd House, a postquake CBD office asset at 70 Gloucester Street, was sold for $27 million at a yield of 5.45 per cent,
The sale to Tauranga-based PMG Property Funds Management Limited was brokered by Mark Macauley, Colliers General Manager in Christchurch. PMG also bought the Vodafone building in Tuam Street last year.
Comprising 3,300sq m across six levels, Anderson Lloyd House was built by local developer Amherst Properties and is anchored by blue chip tenants – Mediterranean Shipping Company, Anderson Lloyd and the building’s engineers, Lewis Bradford.
Macauley says Christchurch commercial property attracted considerable attention from national investors last year.
“We believe that trend will continue in 2021. High calibre properties with top tenants are scarce and, as a result, are keenly contested.
“Covid has done little to slow the market; investors accept that there’s a degree of uncertainty and appear to remain largely bullish, especially against the backdrop of such low term deposit rates.”
Investors have also been active in the industrial sector, with Gough Group’s huge site at Amyes Road, Hornby, selling to a private Christchurch investor for $14m.
The 5.1ha site was the Christchurch base of Gough Group’s heavy machinery operations for the past 50 years, and its last remaining property asset.
In 2019, the family-owned New Zealand business’ operations were sold to Sime Darby Berhad, one of the largest Caterpillar heavy machinery dealers globally.
The Amyes Road site comprises seven independent buildings with a combined floor area of 14,025sq m and a large parcel of brownfields land.
Macauley says the property attracted strong interest from throughout New Zealand.
“We received multiple offers, highlighting the strong demand for brownfields industrial property both in sought after Hornby and the investment interest in Christchurch.
“Land developments in the area have had significant uptake and have lifted the calibre of build quality in the Sockburn/Hornby catchment. Demand is exceptionally strong in the industrial investment market with keen competition from national and local buyers, and strong syndicator interest.”
Colliers Christchurch Managing Director Hamish Doig says it is the third time they had sold the property for different vendors since 2009.
“This shows how incredibly beneficial the property has been for various owners over the past 11 years.”