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Industrial auction runs hot in Christchurch

Industrial auction runs hot in Christchurch

With all-time low levels of quality investment stock available, the competition for well-leased industrial assets is hot.

This was clear at Colliers’ most prominent auction day in Christchurch for many years where $23.62 million of property sold under the hammer with just shy of 100 bids on 5 August.

“The confidence in the market has never been better with six out of six properties sold on the day, all with competitive bidding,” says Christian Kellar, Industrial Broker at Colliers in Christchurch.

“The weight of the capital in the market is a sign that if ever there was a time to sell, it’s now.”

Kellar’s colleague Oliver Salt estimates there was $50 million of unsatisfied investor capital from the auction day still looking for a home.

“Two of the properties were bought by Auckland investors, indicating the continuing appetite they have for the Christchurch market and the other three were local investors,” Salt says.

The jewel in the crown was the sale of a trophy asset in Buchanans Road, Hornby to an Auckland investor for $11 million, representing a 4.82 per cent yield. Leased to an NZX-listed subsidiary, the high-profile property was tipped to attract widespread national interest.

Kellar says the property has excellent investment fundamentals, making it a rare A-grade investment opportunity.

“The competitive bidding on that property highlights the lack of available investments of this calibre.”

Another Hornby property at 11 Establishment Drive, developed and owned by the same private family, fetched $4.140 million and was bought by a local family trust.

“What was particularly interesting about this sale is that the property was a brand new vacant industrial asset but was competed for by investors on auction day. Usually, they look for tenanted assets, but it was clear they were keen to be in the market and prepared to take a risk on vacancy,” Salt says.

The suburb of Wigram was also in hot demand. A post-earthquake 750sq m building on 4,177sq m of land at 6 Timothy Place netted $2.805 million while a conventional high stud building at 63 Hammersmith Drive attracted $2.585 million – with up to an 18-month lease in place. Both were sold to local buyers, while an Auckland bidder won the 2,530sq m Z Energy site at 208-210 Harewood Rd in Bishopdale for $2.6 million.

Interest was also lively in the only other property, a character ‘as is, where is’ building at 141 High Street that sold to a local buyer for $490,000.


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Christian Kellar

Industrial Broker

Christchurch (Agency)

A former property lawyer, Christian has been a consistently high performing broker in the Christchurch Industrial market for the last eight years. Over that time, Christian has built an excellent network of client relationships. This has been evident in his impressive track record totalling over $200 million of sales along with a strong leasing transaction record.

Christian focuses on selling industrial investment stock, along with vacant property and land sales. Recent sales highlights include the sale of 89 Buchanans Road, Hornby, Christchurch for $11m. This sale represented a record for the highest value commercial property sold at auction in Christchurch. Other recent sales transactions include 7 Stark Drive, Wigram for $3.250m and 6 Sonter Road, Wigram for $2.9m.

Christian also has an impressive leasing ability and services a number of loyal clients with vacancies within their portfolio. Recent leasing transactions include the new 8,000 square metre Fisher & Paykel Distribution Centre in Hornby and a 3,000 square metre lease for Formance New Zealand at 31 King Edward Terrace, Woolston.

Christian was invited to the Colliers APAC training camp in Sydney Australia, where he worked alongside a number of industry leaders. His areas of expertise in the industrial market including sales and leasing, corporate tenant representation, and design builds.

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Oliver Salt

Industrial Broker

Christchurch (Agency)

Oliver is a high achieving broker, who has forged an impressive track record negotiating more than $200 million of industrial sales. 

He works collaboratively with multiple stakeholders, including solicitors, engineers, banks, and valuers, to gain a greater understanding of his client’s position. Oliver is widely regarded for his proactive approach and strong communication skills, ensuring he keeps clients informed every step of the way. 

His transactions include a blue chip property at Buchanans Rd for $11m. This sale represented a record for the highest value commercial property sold at auction in Christchurch. Other significant sales include Establishment Drive, $4.14m; Hammersmith St, $2.5m; Timothy Pl, $2.80m; and Meadows Rd in Washdyke, $3.9m.

Oliver has a Bachelor of Sport Coaching from the University of Canterbury.

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