Goodman Property Trust has sold three new buildings in Christchurch to a property fund managed by Mainland Capital for $38.9 million in another bumper deal for the city’s commercial property market.
This sale comes on the heels of the sale of biggest industrial property sale in the South Island ($39.525 million) this year and the largest office sale ($33.2 million). Colliers International transacted all three deals.
Colliers Christchurch general manager Mark Macauley says there is huge interest in the property investment market in Canterbury, and it shows no sign of slowing.
“These are some of the biggest property transactions in New Zealand this year and investors from throughout the country clearly have an appetite for high calibre Christchurch property,” says Macauley.
The latest sale comprises three properties located in Hornby and incorporates five tenants MOVE Logistics, DHL, Packaging House, Cirtex, and Bridgestone.
Mainland Capital Director Ben Bridge says the acquisition reflected confidence in the Canterbury economy and the industrial sector.
“The quality of the asset and the diversification of multiple tenants and titles, had attracted investors to the fund,” says Bridge.
It is unusual to find a property that provides A-grade build quality, location and tenant mix with conservative rental levels.
“Our clients are sophisticated investors and the medium to long term total return fundamentals are to their liking,” he says.
Mainland Capital is a Christchurch based fund manager and commercial property advisor with investment mandates across New Zealand.
In the biggest commercial office sale in Christchurch this year, Goodman Property Trust also recently sold the buildings largely occupied by IAG’s Christchurch offices in Addington for $33.2 million, representing a 7.8% yield.
The purchasers are a group of Queenstown investors led by lawyer Ron Mackersy.
The disposals are part of a wider asset sales programme by Goodman Property Trust so that it can reinvest in new opportunities. It has developed approximately 40,000 square metres of industrial office space in Christchurch since 2008.
And in the biggest industrial property transaction in the South Island this year, with the sale of Progressive Enterprises Ltd’s distribution centre in Christchurch for $39.525 million to NZX listed property funds manager Augusta Capital.
Augusta is advanced in its syndicated sell down, due to close on December 15. The offer is seeking to raise $25.15 million in investor equity, of which the vendor will be subscribing $6 million.
Augusta Managing Director Mark Francis says the sell-down was going “unbelievably well” and that the offer was nearly full.
“We see absolutely no sign of any reluctance to invest in a premium property and tenant such as this in Christchurch,” says Francis.
The offer has attracted investors from all over the country. And an 8% return in this environment is very attractive,” he says.
