Auckland lawyers Glaister Ennor with Jack Porus, director of the firm's syndication arm, GEK Property Management Trust, have been named as the buyers of the Tait Technology Centre in Christchurch for $57.75 million in an unconditional deal.
A news release issued on behalf of Hamish Doig, managing director of Colliers International in Christchurch, along investment broker Noel Gilchrist, who jointly marketed the technology campus for sale, says the syndicator is now well advanced in selling down the investment parcels.
Built in 2014, the Tait Technology Centre is the global headquarters of Christchurch company Tait Communications.
The sale encompasses the head office, at 245 Wooldridge Rd, which is sited on 2.2723ha, and the assembly plant at 558 Wairakei Rd, with a total land area of 2.7049ha.
Doig says the sale came after the buildings' owner, the Tait Foundation, moved to free up capital. The buildings were sold subject to a 15-year lease with guaranteed rental growth.
"Most of the syndication is already complete. The properties were split into an industrial fund that is now fully subscribed and there are only a few hundred $25,000 units left in the office investment fund."
Doig says he was impressed with the level of due diligence undertaken by the syndicator during negotiations.
"All investors know what the game plan is. There is a clear intention, not only to provide a healthy return of 9 per cent for the industrial fund and 8 per cent for the office fund, but preservation of capital is absolutely paramount to the syndicator. Various mechanisms in the contractual procedures have certainly assisted in minimising any potential risks."
Doig says high calibre syndicates are proving popular with investors.
"The beauty of shared ownership is that it enables people with significant capital to pool their resources to get into higher priced - and often higher yielding - opportunities. Lower value properties attract a lot of people competing for opportunities but significantly priced properties such as these have fewer people capable of investing at these levels."
Gilchrist says the Tait Foundation is delighted with the sale, following the official launch of the campaign in early May.
"To get an unconditional result of this nature is further testimony of the healthy state of the investment market in Christchurch and reflects the quality of the property."