An architecturally designed post-earthquake industrial facility is generating interest among passive investors attracted to the size, location, and long-term lease to a multinational auto trader.

The A-grade premises on 2,030sq m (more or less) of freehold land at 54 Waterloo Road is strategically located within Christchurch’s premier industrial precinct, offering excellent road and rail access to the International Airport, national highway interchanges, and other industrial hubs at Rolleston, Wigram and Sockburn.

Bayleys salesperson Nick O’Styke says the property is offered to the market amid a climate of austerity for investors.

“Strict economic measures implemented by the government to reduce public spending and restore fiscal balance has shifted the dial on risk appetite for investors, leading to a focus of activity on prime assets with strong investment credentials.

“With its unique combination of a large and well-configured footprint, unbeatable location, and generous returns from a long-term lease to an internationally recognised auto business, the subject property presents a rare opportunity for investors to park their funds wisely via a bottom-drawer investment that is seldom seen in the market.

O’Styke is marketing the Hornby property for sale by auction, scheduled at 11:00 am on Thursday, 4th July 2024 (unless sold prior).

Designed and built for the current tenant, Multispares New Zealand in 2018, the property totals 1,147sq m (more or less), comprising approximately 852sq m of clear-span warehousing with container height roller door access and a 76sq m canopy.

“The impressive high-stud warehouse is complemented by an attractive office, reception, and display area of approximately 218sq m, which also features high ceilings and broad window frontage to provide ample natural light.”

The regular-shaped site in Industrial Heavy zone features a significant profile to Waterloo Road, in addition to 14 marked car parks and dual entry points.

Multispares is the leading provider of truck and bus parts across Australia and New Zealand, and has a new 10 year lease for the property to June 2034 plus three five year renewal rights.

The property generates a net income of circa $180,000 per annum, with rental growth built in to reflect market rent reviews upon each renewal date.

O’Styke says the new lease to an entrenched tenant will be of particular interest to investors and financiers, who will find inherent value in the hands-off nature of a long-term tenure.

“The security of a long-term tenant, which guarantees a consistent rental income and provides predictability, is particularly reassuring for investors looking to minimise risk in a variable economic climate.

“At the same time, lenders are more likely to provide favourable financing terms for properties with long-term leases and a predictable cash flow, providing an opportunity in the current marketplace where financiers are more amenable to lending opportunities.”

The property’s Hornby location is another significant attraction, given the well-established industrial precinct’s high level of infrastructure and ability to absorb growth.

The surrounding area's occupiers include express freight network PBT, building façade specialists Thermosash, and full-service food wholesaler Bidfood Christchurch.

“The location is second to none, being one of the region’s largest and best-established industrial areas, renowned for a diverse mix of manufacturing, warehousing, distribution and logistical facilities.

“We expect that a tight development pipeline and A-grade nature of the subject property will generate strong attention amongst investors circling for a solid addition to their portfolios,” O’Styke says.

Click here for more information on the listing.