Another big sale buoys Christchurch industrial property market

Local and national investors can't get enough of the Christchurch industrial property sector, with continuing strong interest in substantial holdings coming to the market.

The latest such sale is of two General Cable Corporation sites in Sockburn, comprising 7.19ha, for an undisclosed sum.

The sites house General Cable New Zealand’s head office and manufacturing site.

Mark Macauley, General Manager of Colliers International in Christchurch, says the high-profile property with frontage onto Blenheim Road was sold to a national investor and attracted eight offers in the deadline private treaty campaign.

“The successful buyer is developing their strategy of how best to refurbish the significant existing buildings and develop the surplus areas of the property," he says.

"They will be actively seeking quality tenants to lease parts of the property."

The properties became available following General Cable’s decision to close its manufacturing and distribution operations in New Zealand. The site is likely to be vacant by September. 

Sam Staite, Director of Industrial at Colliers International, says a vacant possession sale of this scale is very rare and the high level of interest from across New Zealand highlights the national confidence in the industrial market from the investment, development and owner occupier buyer pools.

"The sale shows that the Christchurch industrial property market is still highly sought and large underlying land holdings attract interest from wide and far," he says.

"Coverage in the national and international markets is still crucial in the disposal of properties of this quantum as our local market can be thin when it comes to liquidity in the upper end of the market. It is very positive that buyers outside of Christchurch are looking for properties of scale like this."

In the past year, Colliers has negotiated more than $200 million in industrial sales in Christchurch and is predicting continued strong interest. 

“Limited opportunities outside of Christchurch are driving buyers to look further afield for opportunities; this is evident by the amount of out-of-town interest we are receiving. Over half of the offers for General Cable were received from non-Christchurch buyers, showing the level of interest in our market,” Macauley says. 

Other large scale industrial properties Colliers has sold during the past year include PGG Seeds in Tinwald, SRS Timber in Rolleston and a Goodman Property Portfolio in Baigent Way. 

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