A new office block in Christchurch has broken records after selling to an Auckland buyer for around $80 million.
The Manawa building at 10 Oxford Terrace was sold by Chinese property and development company Huadu International.
The deal was brokered by Tim Rookes, managing director of CBRE Christchurch, who said it was the highest-value single-building office transaction ever to be concluded in Christchurch.
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Manawa, a health research and education collaboration between Canterbury District Health Board, Ara Institute of Canterbury and University of Canterbury, holds a 30-year lease to the entire building except the top floor.
The buyer, Wolf Herwegh Vonk, is a Dutch national who decided to move to New Zealand with his family last year.
Herwegh Vonk is a retired lawyer who has worked for many years in Japan and Switzerland. The Manawa building is his first real estate acquisition in New Zealand and he views it as the cornerstone of the portfolio he plans to acquire in New Zealand.
Now a resident of Auckland, Herwegh Vonk spends much of his time on his family's philanthropic interests.
Rookes said Herwegh Vonk was a long-term investor who has “fallen in love with New Zealand” and also has plans for a philanthropic arts venture in Christchurch.
“The strength of the tenant covenant and the 30-year lease term made Manawa the ideal first investment for Mr Herwegh Vonk and we are delighted to welcome him into the Christchurch market.”
The sale demonstrates the increasing attractiveness of good-quality, long-term commercial property investments in Christchurch, Mr Rookes said.
“Christchurch is definitely becoming more widely considered as a prime investment destination among astute buyers looking for larger-scale assets. In a market where purchasers are seeking the quality assurance of post-earthquake construction, Christchurch offers a highly appealing CBD market of new, A-grade assets.
“Huadu’s quality development and the fundamentals of the building make Manawa a genuine blue-chip investment, made even more desirable in the post-Covid environment. Assets like this mean we’re now attracting some of the sharpest capital at a national level. The Manawa building sale is a real proof statement for Christchurch as a premium investment destination.”
The building’s Importance Level 3 (IL3) status means it was constructed to an extremely high structural standard, further increasing its attractiveness as a quality investment, he said.
Located on the corner of Antigua and Tuam Streets, the seven-storey building opened in mid-2018 and was the first private sector development in Te Papa Hauora. It houses more than 2,000 Ara nursing, midwifery and medical imaging students along with Canterbury District Health Board education & development staff and University of Canterbury staff.
“The health precinct is now really taking off and has become an exciting area with continued investment activity. Huadu International also has plans for two exciting developments at 12 and 38 Oxford St. These, along with Otago University’s planned development, will complete Christchurch’s world-class health precinct,” said Rookes.
