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Prized Christchurch industrial asset set for auction

Prized Christchurch industrial asset set for auction

A trophy property in Christchurch’s sought after industrial suburb of Hornby has been listed for sale. Leased to an NZX listed subsidiary, the high profile property is expected to garner widespread national interest.

The A-Grade offering, at 89 Buchanans Road, is being marketed by Christian Kellar, Hamish Doig and Oliver Salt of Colliers, who are also selling another blue-chip property at 11 Establishment Drive in Hornby.

Both were developed and are owned by a private family and are scheduled for auction on August 5.

Built by Calder Stewart, the 5085sq m high stud warehouse and office building at Buchanans Road sits on a high profile 8281sq m site.

Kellar describes the property as having a large range of desirable investment attributes, including a high spec industrial building, sought after location and land holding, high calibre tenant, functional north facing offices, an abundance of carparking and large yard, and two access points.

“This high calibre industrial asset provides strong long term investment fundamentals. We’re experiencing huge demand for clean, well leased industrial stock – these investments don’t come to the market very often and are keenly contested when they do, by private investors, trusts and syndicators throughout the country.”

The property is leased to Dimond Roofing, which is owned by NZX listed Fletcher Building. The tenant provides strong annual income of $530,740.

Operating for more than 50 years, Dimond Roofing has 190 staff through a national network of 12 branches.

Establishment Drive is a new industrial asset that has just been completed by Calder Stewart and finished to their trademark excellent standard, says Salt.

The property is made up of a large clear span warehouse and single level offices covering 1664sq m on a 2802sq m site. The warehouse has multiple roller doors with drive through capability and dual access points.

“Like Buchanans Road, this property has outstanding fundamentals that make it very appealing to investors and owner occupiers who are looking for an A-Grade industrial asset which ticks all the boxes.“

Establishment Drive is located within Calder Stewart’s Hornby Quadrant industrial precinct, adjacent to Ngai Tahu’s new development on the former Watties site.

Two other modern industrial assets are set down for auction on August 5, making it one of the biggest industrial offerings in Christchurch this year.

Hornby is one of the most sought-after and evolving commercial/industrial areas in Christchurch with huge growth forecast over the coming five years. It has been greatly gentrified over the past decade with substantial-refurbishment and repurposing of older facilities.

“This is without doubt the most sought after location for national and international businesses due to its proximity to the region’s major distribution centres, excellent roading networks and the ever-growing residential population,” Salt says.

The roading improvements and developments taking place in this area are a big driver for industrial demand. The upgrade of Halswell Junction Road has greatly improved the traffic flow and the new Southern Motorway Stage 2 is a game changer for traffic heading to and from Rolleston and beyond.

Related Experts

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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Hamish Doig

Managing Director

Christchurch (Agency)

Hamish is Managing Director of Colliers International in Christchurch. He is regarded as one of the most influential and well-connected investment brokers in the South Island and one of the most successful in New Zealand.

Hamish is a trusted advisor to his many high-profile clients, proactively building value into their portfolios by identifying investment opportunities. A strategic thinker, he is always solutions focused and sees opportunities where others see challenges. 

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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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