Christchurch housing complex on market
One of the biggest privately-owned housing complexes in Canterbury has been placed on the market.
The 9060sq m site in the Christchurch suburb of Mairehau consists of four modern apartmentstyle blocks, a total of 73 units with
100 per cent occupancy rate in
2135sq m of buildings.
Units within the complex are let on average for $270 weekly with the Government underwriting all tenancies.
The complex was originally built as CSN education and sports management college for a largely Korean tertiary clientele.
The freehold property is zoned Residential Suburban under the Christchurch City Council urban plan, which encompasses single and two-storey dwellings with allowances for garages and ancillary buildings.
Constructed in 2005, the four accommodation blocks are Heathcote (416sq m), Avon (543sq m), Ashley (374sq m) and Waimakariri buildings (802sq m).
541–545 Innes Rd in Mairehau,
5km from the Christchurch CBD, is being marketed for sale by deadline private treaty through Bayleys Canterbury, with offers closing on October 20.
Infrastructure in the complex consists of seven common rooms, a reception area, one commercial kitchen and four standard kitchens, three laundries, six communal bathrooms, six disabled toilet and shower units, a manager’s office and reception office.
Bayleys Canterbury salespeople Angela Webb and William Wallace said the property generated a fully leased net annual income of approximately $700,000, with the opportunity of continuing the venue’s operations under the existing multi-lease agreement underwritten by a government agency.
“Alternatively, any new owner could look at taking on a new twoyear lease on settlement, with a fiveyear right of renewal, for $650,000 plus GST per annum,” said Webb.
“There is also a granted consent for the conversion of 12 unit titles within one of the existing buildings to be reformatted into studio apartments. This reconfiguration would create a new product offering under the existing housing umbrella, and bring with it higher weekly letting rates.”
Webb said draft plans had been created for extending the Waimakariri Building — largest of the blocks — to create an additional 18 apartments, and these plans could be viewed by potential buyers. Further accommodation could be developed on undeveloped flat grassed land.
Wallace said while the venue was currently successfully trading as an accommodation provider, there was the long-term potential to totally remodel it into a retirement village to cater for a different clientele.
“Investment or redevelopment opportunities of this scale and dynamic are very rare in Christchurch and it is expected to attract interest from myriad buyers.”