A prominently positioned commercial building that sits on a high-profile corner location in the city fringe of Christchurch is being presented to the market for sale, giving buyers the opportunity to acquire a premium asset underpinned by a strong tenant covenant.
Located at 337 St Asaph Street, the two-storey property has 1,217sq m of floor area on a 1,414sq m freehold site. There are 18 on-site car parks, providing convenience for the tenant.
Kirk Roberts Consulting, a multi-disciplinary engineering and design firm, began a new eight-year lease term on 1 April last year while there are two rights of renewal for four years each leading to a final expiry of 31 March 2041.
The total net annual rental income from the property is $378,728 plus GST and outgoings but that rises to $393,240 once the nearby One NZ Te Kaha Stadium opens to the public.
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Nearby is arguably an understatement given the new facility – that will play host to the champion Super Rugby team the Crusaders, among other sports teams and concerts – is only 100m away.
The facility is set to open next month and is expected to draw significant interest in the surrounding precinct and will add to the revitalisation of the Christchurch CBD.
The property is zoned Central City Mixed Use Zone by the Christchurch City Council.
Colliers Christchurch Directors Courtney Doig and Nick Doig have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 26 March, unless sold prior.
Constructed following the devastating Christchurch earthquakes, this top-quality building benefits from exceptional natural light, dual street frontage that spans approximately 80m, and strong profile to passing traffic. It is also surrounded by modern developments and well-known commercial occupiers.
Courtney Doig, Director of Investment Sales at Colliers Christchurch, says the combination of the tenant covenant and attractive lease terms makes this one of the most appealing passive investment opportunities that will be available in the city this year.
“Kirk Roberts Consulting is a well-established local firm that continues to grow its presence. They have made a clear commitment to the location through a new long-term lease agreement that will give buyers confidence,” Doig says.
“The lease terms will be attractive to investors with market reviews due in 2030, 2033, and 2037, subject to a cap and collar of 5 per cent. There are also annual CPI increases capped at 2 per cent that begin from the second anniversary of the lease commencement.
“We know investors seek this type of built-in rental growth, making this an asset that we expect will draw considerable interest.”
The Christchurch CBD is now a thpremium asset underpinned by a strong tenant covenant.
riving location following the completion of the retail and dining hub The Terrace, alongside extensive housing developments, and civic and community facilities. The surrounding precinct to the subject property will be anchored by the new stadium that will drive events, hospitality, and visitor activity.
Nick Doig, Director of Retail at Colliers Christchurch, says the property is conveniently nestled in a people-focused environment given it is only a short walk to key amenities.
“Cashel Mall and the broader commercial office core of the city is easily walkable, and this property is readily accessed via public transport and key arterial routes,” he says.
“The property is positioned at the intersection of commerce, entertainment, and amenity, making it a setting that supports business performance and workplace appeal. Assets of this quality are seldom found on the open market.”
- Supplied by Colliers
