Unrelenting demand for prime industrial property investments is set to fuel interest in two near-new assets in the sought-after Christchurch suburb of Hornby South.
The properties at 2 Headquarters Place and 9 Establishment Drive are both located in the burgeoning new Hornby Quadrant development. For sale separately by deadline private treaty closing 15 March, they are being marketed by Sam Staite, Hamish Doig, and Mark Macauley of Colliers Christchurch.
“The current market is revealing opportunities that we don’t see very often,” Staite, Director of Industrial at Colliers Christchurch, says.
“With the security of long-term leases, fixed annual rental growth, and high-calibre tenants, these investment properties will appeal to those looking for a bottom-drawer trophy asset with obvious future upside.
Start your property search
“The spectre of more interest rate rises, and tougher economic times mean seasoned investors want only the best. It’s hard to find stock to meet their criteria but these offerings are immaculate.
“Both are very conventional assets with low site coverage, providing for a wide range of industrial uses down the track with plenty of expansion or development opportunity.”
Built in 2018, the Headquarters Place building is designed as a parts distribution centre, display yard, and heavy vehicle service centre. It has a 15-year lease with two rights of renewal to global heavy vehicle behemoth Penske New Zealand.
The floor area of 3,992sq m represents about 31 per cent of the total land area of 12,783sq m. The annual net rental income is $773,628.
Constructed for SuperTyre in 2019, the Establishment Drive corner site has the rare benefit of three street frontages. It has a floor area of 1,579sq m on 4,166sq m of land. The annual net income is $250,677. Aside from Penske, other neighbours include Oji, Foodstuffs, Progressive Enterprises, Glassons, and Fletchers.
The clear span and high stud warehouse, with its multiple roller door entrances, is accessed from two sides, while the site itself has four separate entrance points providing drive-in/drive-out ability. The car parking area is also independently accessed providing that all-important separation that most operators now require, Staite says.
SuperTyre has two rights of renewal.
“For larger industrial occupiers, Hornby is still the top location in Christchurch. Hornby South is already one of the most popular and rapidly evolving commercial and industrial areas in the catchment with huge growth forecast over the coming years.“
- Article supplied by Colliers
