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Z Moorhouse site an investor’s dream

Z Moorhouse site an investors dream
As a teenager, Paul Kelly used to pour petrol at the now Z Moorhouse site he is selling on the Christchurch CBD fringe.

The well-known car dealer has owned the site for the past 20 years, but it wasn’t always that way.

“When I was 15 years old, I used to work the Sunday 4pm-mdnight shift pouring gas at the petrol station there. I held down a full-time job but I wanted to make some extra money to buy myself a flash set of wheels.”

Z Moorhouse has circa 11 years to run on its lease in the post-earthquake build, which is for sale by deadline private treaty, closing June 10. Mark Macauley, Colliers Christchurch general manager is selling the site in conjunction with industrial colleague Paul Marshall.

Kelly is arguably the largest landowner along the city arterial route and responsible for much of its transformation post-earthquake into attractive low-rise offices with generous landscaping and parking.

He’s particularly attached to the high-profile Z Moorhouse at 40 Moorhouse Ave but says it’s the right time to sell, describing the site as the jewel in the crown of his investment portfolio.

Macauley says the site will have wide appeal to investors throughout New Zealand.

“It ticks all the boxes as a long term investment because of the high calibre of the NZX and ASX listed tenant, prime corner location and long-term lease with annual CPI increases.

“Z Moorhouse is well positioned to service a wide range of customers based not only locally, but also those commuting into the city for work each day. Sitting just a block over from Hagley Park, the site is close to Christchurch Hospital and other key city staples. Its position provides large exposure with ample signage acting as a billboard to passing traffic.”

Redeveloped in 2013 to allow better access, the 2,753 sqm site has access onto Moorhouse Ave and Selwyn St. It features a large open canopy that houses eight fuel pumps, as well as a retail building and a carwash. Inside, the 220 sqm retail building hosts a Z Espress café, serving food and coffee to customers on the go. There is also ample car parking both in front and behind the main retail space.

The fuel pumps feature “Pay-at-Pump” facilities, as well as state of the art “Pay-by-Plate” and there are additional amenities such as an LPG gas bottle exchange, and an EV charging station.

The landlord owns the forecourt canopy, the convenience store shell and the carwash shell with the balance of the fixtures and fittings being owned by the tenant.

Paul Marshall says Colliers has had a huge amount of interest in any recent offering in the industrial market.

“This isn’t just coming from local investors but from investors throughout the country who are looking for guaranteed long term leases and income. There’s a real lack of stock at the moment and the fact that this is 100% of NBS makes it doubly attractive.”

Z Moorhouse sits across the road from the $301 million Metro Sports Facility, due for completion in 2022, and featuring a 50m 10 lane competition swimming pool, a diving pool, large aquatic leisure area, five hydro slides, a multi-sensory space, fitness centre and nine indoor courts. While already a busy area, this state-of-the-art complex will see a large influx of visitors to Moorhouse Avenue.

Related Experts

Mark Macauley

General Manager

Christchurch (Agency)

Mark is a high achieving investment broker specialising in investment sales and has negotiated in excess of $1.3 billion of sales both in Canterbury and throughout New Zealand. He has been instrumental in some of the biggest commercial property transactions in the South Island. 

Mark’s extensive national network of institutional clients, family trusts and high net worth individuals are always seeking opportunities in the commercial property market. He is a partner and general manager of Colliers International in Christchurch and was previously managing director of CBRE locally for 12 years.

Recent major transactions include: the former Police Station at 68 St Asaph Street ($24.7m); Opus House, 12 Moorhouse Ave ($37.5m); Westpac, 7 Show Place ($14.5m); 282 Durham St (confidential); and 124-140 Kilmore Street ($25.2m). 

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Paul Marshall

Industrial Broker

Christchurch (Agency)

An industrial specialist for the past 16 years, Paul is involved with several significant design builds and unit developments, especially in Sockburn and Izone, Rolleston. He has strong relationships with leading industrial investors in Christchurch. Sales include: 16ha of industrial land in Rangiora; the sale of six large industrial sites for Ngāi Tahu Property in Nga Mahi Rd, Sockburn; the land formerly occupied by the Tip Top factory in Blenheim Rd; and seven substantial sections in Izone. Leases include: Pentair Water Solutions to a new office/warehouse in Hornby, a showroom in Moorhouse Ave to Konica Minolta; the Department of Conservation into offices in Nga Mahi Rd and Moorhouse Ave; and IRD into Moorhouse Ave.

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