Large site ripe for high-density housing
A significant mixed-use investment opportunity in central Christchurch is underpinned by a large landholding and high-profile location.
The 9065sq m property at 442-472 Tuam St is for sale by deadline private treaty closing on 27 October and is being marketed by Mark Macauley and Marius Ogg from Colliers and Frank Commercial’s Chris Harding.
Split into multiple freehold titles, the property has three street frontages and occupies a prime corner near the site of the proposed Canterbury Multi-Use Arena, Te Kaha.
Four buildings occupy the site, the last of which was added with the purchase of an adjacent property at 472 Tuam St last year to cope with growing tenant demand.
“Under the current review of the Christchurch City Plan, the proposed zoning may change from Industrial to Mixed Use, allowing for further intensification of the land and the potential for high-density residential, underpinning the value of this opportunity,” Macauley says.
“The property’s multi-tenant occupancy and strong underlying land value paired with future redevelopment opportunities ensures it will be attractive to an astute investor or developer.”
Most of the site was originally occupied by iconic Kiwi bakery Ernest Adams. The current owner bought the site in 2007 and set about transforming brightly coloured buildings with a diverse mix of tenants providing a spread of risk.
But food manufacturing is not entirely lost to the property, with the complex now anchored by Tuck, a cloud kitchen business, which provides individual preparation kitchens for the likes of vendors at Riverside Market. Tuck’s sub-tenancies occupy Building 3 and have expanded into the recently acquired building.
At the corner of Tuam and Phillips streets, Building 1 comprises office and warehouse space and is leased to Revolution Church with an auditorium and associated office facilities. Building 2 is subdivided into five self-contained tenancies and has been upgraded into a mix of offices, amenities, and warehouse-style fitness and dance studios. Between the two larger buildings is a small stand-alone workshop.
Located 1.4km from the CBD in Phillipstown, the tenancies range in size from 72.64sq m to 1200sq m, providing total annual net income of around $1.215 million.