A former Christchurch rest home that has been transformed into newly opened student accommodation by the University of Canterbury is to be sold by its Hamilton owners.
Kirkwood Avenue Hall, opened this year, accommodates 74 full time students as a self-catered hall for first years. The property is located at 7-15 Kirkwood Avenue, and was previously the St Nicholas aged care facility operated by Bupa NZ.
The university has a 12-year lease on the recently refurbished property with a further right of renewal of nine years. The land holding of 5900sq m is in three titles, and the building itself covers 2630sq m.
Investment broker Courtney Doig, of Colliers International Christchurch, said the new hall had helped to address the scarcity of quality student accommodation close to the university.
“This is a highly sought after area, right in the heart of residential Ilam/Upper Riccarton. There are a number of savvy buyers looking for student accommodation investments, however, there have been very few conversions of this scale and quality.”
For example, Doig said six ownership units just along the road at 12 Kirkwood Ave sold in 2015 for $1.4 million and which were also leased by the University of Canterbury.
“We think this current property will be snapped up by someone looking for a significant land holding with a solid tenant covenant with an annual rental return of $320,000 net.
"The university has a long term commitment but if it does vacate the property at some future date, there is a high underlying land value given its location in a high value residential suburb directly opposite the university.”
Doig said the vendors have committed to their next project and, as such, the offering is for genuine sale.
The property will be auctioned on Thursday, 13 April 2017.
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