Goodman Property Trust has sold three new buildings in Christchurch to a property fund managed by Mainland Capital for $38.9 million in another bumper deal for the city’s commercial property market.
This comes hot on the heels of the sale of biggest industrial property sale in the South Island ($39.525 million) this year and the largest office sale ($33.2 million). Colliers International transacted all three deals.
Mark Macauley, general manager of Colliers in Christchurch, said there is huge interest in the investment property market in Canterbury and it showed no sign of slowing.
“These are some of the biggest property transactions in New Zealand this year and investors from throughout the country clearly have an appetite for high calibre Christchurch property.
“The latest sale comprises three properties located in the Goodman-owned Glassworks Industry Park, Hornby and incorporates five blue chip tenants MOVE Logistics, DHL, Packaging House, Cirtex and Bridgestone. All the buildings were completed in 2014 to 100% of code and have a staggered lease expiry profile,” he said.
Mainland Capital Director Ben Bridge said the acquisition reflected confidence in the Canterbury economy and the industrial sector in particular.
“The quality of the asset and the diversification of multiple tenants and titles, had attracted investors to the fund. It is unusual to find a property that provides A-grade build quality, location and tenant mix with conservative rental levels. Our clients are sophisticated investors and were attracted to the medium to long term total return fundamentals,” he said.
Mainland Capital is a Christchurch based fund manager and commercial property advisor with investment mandates across New Zealand.
In the biggest commercial office sale in Christchurch this year, Goodman Property Trust also recently sold the buildings largely occupied by IAG’s Christchurch offices in Addington. The buildings fetched $33.2 million, representing a 7.8% yield, and were bought by a group of Queenstown investors led by lawyer Ron Mackersy.
The disposals are part of a wider asset sales programme by Goodman Property Trust so that it can reinvest in new opportunities. It has developed approximately 40,000 of industrial office space in Christchurch since 2008.