Investors have endured a turbulent few years, navigating everything from a global pandemic to international trade tensions and supply chain disruptions. As a result, many are seeking investments that offer greater certainty and dependable returns.
A brand-new industrial property at 58 Hynds Drive, Rolleston – purpose-built and fully leased for 12 years with annual rental growth of 2.5 per cent – is exactly the kind of sought-after asset that can ride through turbulent economic times, providing constant and consistent returns.
“A lot can happen in the world and when your money is invested in shares and the financial markets you are exposed to risk and turbulence,” says Harry Peeters, Industrial Sales Broker at Colliers Christchurch.
“This Hynds Drive property provides a high degree of income certainty from a committed tenant, and bricks and mortar are a low risk.”
Start your property search
Mechanical engineering specialist PEI Group partnered with a private developer and architect to design a facility tailored to its operational requirements.
Nonetheless, the building is conventional.
“It would suit a wide range of occupiers if it came empty tomorrow as it is universal in its appeal,” Peeters says.
Two further rights of renewal of eight years each support the initial term.
The annual rental growth compounds the income yield each year, with market reviews at the first, fifth, ninth, and subsequent four-yearly commencement date anniversaries.
“That means a buyer today could hold a passive income-producing asset well into the 2050s if the renewals are exercised,” Peeters says.
PEI Group is an engineering services company essential to the wider economy through its everyday support to dairy manufacturers, power generators, the oil and gas industry, and the pulp and paper sector.
Comprising three businesses – PEI Pressure Equipment Integrity, PEI Industrial, and ValveTech – the group specialises in management of boilers, pressure equipment, and pressure piping, from design and fabrication through to inspection, maintenance, and end-of-life assessment.
The freehold property encompasses 2,505sq m of rentable area on 4,792sq m of land, zoned Business 2A under the Selwyn District Plan. The warehouse has multiple container-height roller doors opening onto a large, sealed yard, accessed via three separate vehicle crossings and safeguarded with security fencing and manual sliding gates.
High-quality internal offices on both ground and mezzanine levels feature centralised HVAC, glass-partitioned meeting rooms, and high stud frames, with upstairs offices overlooking the warehouse floor.
The property sits within the Tawhiri Business Park in Rolleston, where industrial real estate development is constant and the working population continues to grow as people choose to work and live in the thriving Selwyn District.
The Rolleston corridor continues to outpace the broader Christchurch area for industrial growth, driven by the district council’s business-friendly approach and proximity to key transport links.
“For investors tired of the unpredictability that has defined the past five years, this is the rare chance to secure an income stream that grows every single year,” Peeters says.
The property is offered for sale by auction at 10am on 2 July, unless sold prior.
- Supplied by Colliers
