Investors hungry for commercial property turned up in force at the latest Colliers International auction in Christchurch.
All three properties sold under the hammer for a total of $11.075 million with investment broker Courtney Doig estimating a further $50 million of unsatisfied demand.
“The keen interest really demonstrates the strength of the commercial property market in Christchurch this year, with low bank deposit rates also providing motivation for investors to look for more attractive alternatives. The biggest issue is the shortage of quality investment product.”
There were 50 bids for a plum 1,371sq m CBD site, on the corner of Herford and Colombo Streets and Cathedral Square. It was one of the last and most prominent remaining pieces of central city bare land in Christchurch.
Doig says the successful bidder, Christchurch investor Nexus Point Ltd, which owns the Spark building opposite, was considering options for the prized land.
The $8.1 million sale marked the second time the site has changed hands since the earthquakes.
“At $6,142 a square metre, we think this is the highest price fetched for this type of land in Christchurch, indicating the strength of the market.”
In other auction results, the sale and leaseback of 355 Blenheim Road attracted 29 bids, selling under the hammer for $2.040 million while there were 16 bids for a lifestyle property on Old West Coast Road which sold on the floor for $935,000.
Doig says disappointed bidders who missed out on 9 Cathedral Square could now turn their sights to 159 Hereford Street, four doors along. Known as Malvern House, the six-storey mid-century concrete building is being sold ‘as is where is’ at auction on December 10. Occupying a 754sq m site, the building also has a penthouse level and a rooftop terrace.
“This is ripe for repair with the potential for investors to retain the existing structure and convert to a multitude of uses such as office, retail, hospitality, boutique hotel, backpackers and mixed-use development including residential.”