One of the biggest privately-owned housing complexes in Canterbury has been placed on the market for sale.
The 9,060-square metre site in the Christchurch suburb of Mairehau consists of four modern separate apartment-style blocks - encompassing a total of 73 units with a 100-percent occupancy rate in some 2,135-square metres of buildings.
Units within the complex are currently let on average for $270 per week, with the government underwriting all tenancies. The complex was originally built as an education and sports management college known as CSN College for a largely Korean tertiary clientele.
The freehold property is currently zoned residential suburban under the Christchurch City Council urban plan – which encompasses single and two-storey dwellings with allowances for garages and ancillary buildings.
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Constructed in 2005, the four accommodation blocks within the address are referred to as Heathcote Building (416 square metres), Avon Building (543 square metres), Ashley Building (374 square metres), and Waimakariri Building (802 square metres),
The commercially-constructed accommodation hub at 541–545 Innes Road in Mairehau, some five kilometres from the Christchurch central business district, is now being marketed for sale by deadline private treaty through Bayleys Canterbury, with offers closing on October 20.
Infrastructure within the professionally structured 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. The complex is fully compliant under Healthy Homes requirements.
Bayleys Canterbury salespeople Angela Webb and William Wallace said the property generated a fully leased net income of approximately $700,000 per annum – 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 two-year lease on settlement, with a five-year right of renewal, for $650,000 plus GST per annum,” said Angela 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.
“The village-style community environment within the Mairehau property – enhanced by large mature trees and well-maintained lawn area around the boundaries – gives tenants a reason to stay long-term and enjoy a quality lifestyle, which in turn creates a consistent cashflow paid by the Government.”
Webb said draft plans had been created for the extension of the two-storey rectangular-shaped Waimakariri Building - the largest of the four blocks - to create an additional 18 apartments, and these plans could be viewed by potential buyers. She said there was also the opportunity to further develop accommodation offerings on the site through intensification of currently undeveloped flat grassed land.
The complex at 541-545 Innes Road is located close to a multitude of community facilities - such as the Edgeware Tennis Club, Buller Stream Walkway, The Palms Mall, and Homebase Shopping Centre.
Extensive residents’ car parking is located immediately outside each of the four accommodation blocks, with a large turning circle at the end of the wide sealed driveway.
Wallace said that while the venue was currently successfully trading as an accommodation provider, there was the long-term potential to totally remodel the property 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 are consequently expected to attract interest from a myriad of buyers,” Wallace said.
- Article supplied by Bayleys
