A large central Christchurch land holding on three separate titles, with mixed use zoning and significant future redevelopment potential, is offered for sale via CBRE.
The 1.3 hectare site at 385, 391 and 391a Madras Street, currently leased to Carters and providing considerable income for the next four years, is one of the few remaining large mixed use sites of scale suitable for development in the central city.
Cameron Darby, CBRE associate director of investment sales, said the property represents much more than a simple tenanted investment and will be considered a highly strategic CBD site among buyers.
“This is one of the largest land holdings to come to the market post-earthquake in central Christchurch.
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"It is a rarely available opportunity to acquire a mixed-use property of scale, with multiple future development options in the centre of the city.
"It is underpinned by strong underlying land value, putting it in a class of property assets that is currently highly sought after.”
The central Christchurch commercial property market has become very tightly held, with virtually nothing else available on a similar scale with near term development potential at the moment, he said.
“This scarcity means it will likely be of interest to a range of buyers planning anything from a passive investment holding right through to large-scale redevelopment.
"The three titles also offer further flexibility to buyers, who could opt to keep or on-sell one or more of the individual sites depending on their requirements.”
The property, which is for sale by deadline private treaty closing on September 19, has been home to the central Christchurch branch of the Carters building supply network since the 1960s.
Carters now has around four years remaining on its lease with no further rights of renewal, providing an opportunity for investors and developers to consider the highest and best use of the site in the context of the changing local built environment, said Darby.
“There have been significant changes in land use and occupation trends in this area over the decades and particularly in the post-earthquake years.
"Warehouse-based occupiers have gradually been replaced by medical facilities, high-density residential and retail, benefiting from the site’s high profile position on a key arterial route through the CBD.”
Some of the options available to developers are retail, residential, office, medical, educational, church, community-based organisations or recreation.
The site is located within walking distance to over $2.7 billion worth of government anchor projects and major landmarks, including One NZ Stadium, Te Pae Convention Centre, Cathedral Square, Christchurch Casino, Hagley Park, Victoria Street, the central city retail precinct and the Ōtākaro-Avon River walkway.
The current lease to Carters generates $943,562 a year, providing significant holding income while the buyer masterplans a large-scale redevelopment.
Alternatively, the new owner could look to negotiate new lease terms with Carters or opt to use the existing highly functional buildings and yard space, Darby said.
“The existing buildings are spacious and adaptable, and would be suitable for a wide range of occupiers looking for larger-format warehousing and yard storage in a central location.”
The property comprises a large 5,450 sqm trade store depot spread across multiple detached buildings, with various upgrades and extensions completed over the years.
It provides contemporary trade retail space, along with amenities over two levels, a drive-through storage area, canopy and extensive racking.
A dispatch warehouse along the southern boundary, significantly upgraded and renovated in 2012-2013, provides further storage and amenities. On the north side of the property is a small warehouse and office building constructed in 2016.
The site also includes car parking, vehicle storage space and full perimeter security fencing, with an expansive 225m frontage to Madras and Aberdeen Streets and a convenient corner position in an area where major retailers are planning future developments, he said.
“The announcement of Woolworths’ recent land acquisition along Madras Street to the north will enhance this location, with a new supermarket development proposed.
"Foodstuffs also owns landholdings immediately to the south west next to Briscoes, which further boosts the future value potential of this northern CBD precinct.”
- Supplied by CBRE
