Listed and unlisted property funds and syndicate groups are back bidding on quality industrial assets in Christchurch, according to Colliers.
Director of Industrial Sam Staite and Investment Sales Broker Mark Macauley from Colliers Christchurch jointly transacted a landmark $40 million sale in Middleton recently.
The sale drew well over $250 million in offers from funds, syndicates, and private investors around New Zealand, signalling a decisive shift in the investment landscape.
“After a relatively quiet few years from funds and syndicates, we’re now seeing multiple, highly competitive offers from these groups on the right assets,” Staite says.
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The sale of the 5.695ha site in Baigent Way closed in August and was settled this month. It’s a compelling example of renewed institutional appetite.
Fully leased across six tenancies, the complex sold unconditionally at the deadline to an out-of-town private investor.
“As one of the largest central Christchurch industrial landholdings to hit the market in recent memory, Baigent Way showcased the depth and speed of both private and institutional participants,” Staite says.
Macauley says the market backdrop is amplifying that momentum.
“Falling deposit rates are pushing investors to seek higher returns, while sticky inflation is sharpening the focus on preserving purchasing power,” he says.
“The breadth of participation from funds and syndicates on Baigent Way shows institutional buyers recognise quality and are prepared to compete aggressively for it.”
Canterbury’s fundamentals are reinforcing the trend.
Business Canterbury Chief Executive Leeann Watson notes the region’s resilience as businesses are being established at twice the national rate, regional GDP is slightly positive versus a national contraction, and the latest survey shows 64 per cent of Canterbury firms expect the economy to strengthen over the next year, with strong hiring and capex intentions.
“We don’t ride the booms and busts like other main centres, and right now that stability is our not-so-secret weapon,” Watson says.
For Colliers Christchurch, the message is clear.
Staite and Macauley say renewed institutional appetite – backed by Canterbury’s steady economic base – is putting prime, large-scale industrial assets firmly back in the crosshairs of funds and syndicates.
The Baigent Way complex attracted strong interest due to its combination of investment-grade characteristics, including A-grade tenant covenants anchored by Mainfreight subsidiary Owens Group, multiple titles across four separate addresses (16, 22, 25 and 31 Baigent Way), a substantial landholding with low site coverage enabling future development, more than 300m of State Highway 73 frontage, and a functional rail siding.
Staite says properties with strong tenant covenants, excellent fundamentals, including generic improvements and large landholdings, exceptional profile, and genuine growth potential are in demand.
“Properties with these characteristics are now attracting serious competition from institutional buyers who are very much focused on removing income risk and securing premium assets with proven tenants.”
- Supplied by Colliers
