Value add opportunities in hot demand for investors and developers
The family of the well-known late motorsport driver, Stan Redmond, is selling the large parcel of industrial property in Sydenham where his former factory is based.
Redmond established Flexoplas Packaging Ltd in 1983, with the business subsequently sold after his untimely death from a motorsport accident in early 2013.
The new owners of Flexoplas are shifting their operations to East Christchurch next January, and the family has decided to sell the buildings situated on Wordsworth, Hawdon and Kingsley Streets.
The substantial 4,835sq m holding will be sold on an ‘as is where is’ basis in one lot. It comprises nine buildings, with total floor area of 3728sqm.
Circa 1970s construction, the offering is in seven freehold titles, together with four individual unit titles.
The site has 57m of frontage onto Wordsworth Street, 98m to Hawdon St and 37m to Kingsley St. Annual total rental is $374,863.
Sam Staite, who heads the industrial division for Colliers International in Christchurch, says ‘value add’ opportunities are still extremely popular.
“’As is’ properties are still in high demand because there are very few coming to the market now. In our experience, banks still seem very willing to fund proven investors for these value-add opportunities.
“For instance, 129 High Street, formerly home to Ace Videos, was keenly contested at its recent auction, attracting 24 bids.
“Similarly, an ‘as is where is’ at 46 Battersea Street attracted 13 offers during its campaign, all from local investors/developers.”
Staite says Sydenham has undergone a significant change in the past 10 years with a large amount of the area refurbished and repurposed into trade showrooms.
“Large scale properties in this area are rarely available for sale. Although still a popular location for automotive services and supplies, due to its close proximity to the CBD, gentrification is now widespread through the Sydenham area.
“Flexoplas provides significant holding income until the end of January 2020 when its lease expires, which leaves the buyer with plenty of time to plan for the buildings’ future.
“We’re expecting interest from investors who could refurbish, strengthen and re-tenant the buildings or who could possibly sell the properties on individually.”
The property is being sold by auction, unless sold prior, at 10am, Thursday 4 July.
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