The largest office tower in the South Island, PricewaterhouseCoopers Centre in Christchurch, is being put on the market by owners Kiwi Income Property Trust.
High end CBD property is tightly held in Christchurch and the last A Grade tower to change hands was eight years ago. Completed in 1990, long term investor Kiwi Income Property Trust has owned the PricewaterhouseCoopers Centre since 1997.
The 21 level Armagh St building has long been a market leader in the CBD and its position overlooking the Avon River is considered one of the premium sites in Christchurch.
Jon Lesquereux, Head of Transactions & Projects for the Trust, said that the property had retained its position as Christchurch’s landmark office tower.
“However, there is now a desire to re-weight the office portfolio more to the Auckland and Wellington markets.”
Lesquereux confirmed that the Trust was maintaining its retail interest in Christchurch and had no plans to sell Northlands Shopping Centre.
Office buildings make up 41 per cent of Kiwi Income Property Trust’s total property portfolio.
Hamish Doig, managing director of Colliers International in Christchurch is jointly marketing the property with Mark Macauley of CB Richard Ellis.
They are expecting strong international interest in the site, and said Singaporean investors were showing renewed interest in the market.
“It’s certainly true that this is a large investment for the Christchurch market. But a building of this calibre doesn’t come along everyday in Christchurch – it’s 12 years since this last changed hands and eight years since the sale of Forsyth Barr. It is fully leased and the tenants are high quality with the likes of Beca, Lane Neave, HG Livingstone and PricewaterhouseCoopers.”
The building is currently valued at $55.4 million with indicative rentals for 2010 of $4.7 million.
“With the shortage of A Grade office space in the Christchurch CBD and limited scope for new office towers of any note to be built because of construction costs, this has plenty of investment potential. The current gap between office rents for existing stock and getting any traction for a new build makes it prohibitive to contemplate in the current economic climate,” Doig and Macauley said.
The PricewaterhouseCoopers Centre comprises 18 levels of office space, ground floor retail, two levels of carparking, gymnasium, swimming pool and sauna. It is for sale by private treaty, closing November 5.
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