Premium Christchurch property Airways Corporation is being offered for syndication by flourishing Timaru syndicator Commercial Investment Properties Ltd.
The property, at Sir William Pickering Drive, was previously owned by Australian property giant Abacus Funds Management, who bought the site two years ago and sold it as part of a decision to quit this New Zealand investment and concentrate on the Australian market.
Cheryl Macaulay, managing director of Commercial Investment Properties, has bought Airways for $16.875 million and said it is an ideal property to offer for syndication as a proportionate ownership scheme.
Commercial Investment Properties is conservatively gearing the property with a first mortgage to ASB Bank and the remaining equity of investors’ funds in $50,000 investment parcels.
“The strong tenant covenant makes me confident of attracting more than enough investors for the scheme to go ahead. Airways Corporation is a State-Owned Enterprise and, as such, is an outstanding tenant. Located close to Christchurch Airport, this is an excellent property which is ideal as a sound conservative investment,” Macaulay said.
Commercial Investment Properties Ltd has been in the market since 2002 offering syndication properties through proportionate ownership. To date, CIPL has in excess of $150 million of syndicated property under management.
Colliers International in Christchurch is the selling agent of the Airways property.
Managing director Hamish Doig said the property has a 12 year lease with 10 years remaining in the initial term. It has an initial projected 9.5% return with built in annual growth.
“This is exactly the sort of investment that our investors are seeking in today’s market.”
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