A fully tenanted central Christchurch office building is being offered for sale with several bonuses likely to widen the field of prospective buyers.
With 44 on-site car parks and an opportunity for owner occupation, the two-level building at 323 Madras Street, on the corner of Madras and Peterborough Streets, was built as part of the city’s initial post-earthquakes rebuild around 2013.
Sitting on 1,841sq m of freehold land, the building has a car park ratio rare for that part of the city, Colliers Christchurch Director of Investment Sales Courtney Doig says.
The main tenant is where the story gets interesting. Core Education Limited (Tatai Aho Rau), a professional learning services organisation, holds the largest space at around 603sq m.
Start your property search
Core Education is committed for the balance of its term until September 2029; however, the firm is also looking to sublease.
Doig says that creates a genuine opportunity for an owner-occupier to negotiate the future.
"The office fit-out Core Education would leave behind, subject to agreement, is described as high-quality, eliminating the usual cost of entering a new space.
"Naming rights would also be a consideration – an increasingly scarce asset for a prominent CBD corner profile," Doig says.
The building is 100 per cent occupied. Mainland Design Centre, a curated interiors resource hub serving architects and designers, has the ground floor and is well established in that location since 323 Madras Street was built. Digital agency Empire9 Limited completes the tenancy mix.
For rural investors or buyers seeking a higher yield and passive investment, the proposition is straightforward, Doig says.
"Flush with strong Fonterra returns and proceeds from the cooperative’s sale of the Mainland Group, rural investors are increasingly placing capital in well-located commercial property – drawn by the promise of steady, passive income.
“For investors who want something modern and functional, this ticks those boxes,” Doig says.
The sale lands in a regional economy firing well ahead of the national average.
According to ChristchurchNZ, Canterbury added business locations at 3.2 per cent over the past year – more than double the national rate – with employment growing for eight consecutive months and job ads running 21 per cent higher in February than a year earlier.
The manufacturing sector recorded a Performance of Manufacturing Index of 60.1 in February – well above the expansion threshold of 50 and its highest reading in a year, BusinessNZ reported.
Building consents surged 37 per cent in the three months to February.
Doig says that context of regional strength matters when assessing an investment like this.
“Business confidence is strong and the infrastructure and workforce are here to support it.”
Colliers Christchurch is marketing the property for sale as sole agents via deadline private treaty, closing at 4pm on Thursday 11 June.
- Supplied by Colliers
