A fully-tenanted building in Addington, Christchurch, which encompasses the home of Whitebait Television, is on the market.
The property offers investors one of the highest returns seen on high-quality commercial property in the city in recent years, says Jonathan Lyttle, the local managing director of Savills.
Lyttle is marketing 45 Princess St for an asking price of $5,430,000 which represents a 9.5 per cent return. Offers close on Wednesday September 27.
The property is located in the popular Workstation Business Park and is also home to global recruitment company Hudson and the Green Room Cafe.
Lyttle says the sale of property presents an excellent opportunity for a buyer to gain an exceptional return on their investment.
"Yields like this are simply never seen on quality, fully-tenanted investment properties in the current market. It's a really compelling option for investors who are seeking higher returns than are commonly available."
The three tenants are well established at the property, which consists of two adjoining seismically-strengthened buildings.
The major tenant, Whitebait TV, invested around $1.5m on a significant upgrade and fit-out when it moved to the property in 2009, says Lyttle.
"This resulted in a highly specialised, bespoke studio facility which Whitebait uses to produce several well-known shows including What Now, which is New Zealand's longest running children's programme."
Whitebait is the largest film production company in the South Island. Its 1994m2 tenancy includes reception, main film studio, offices and secondary studio space.
Hudson, which operates in 20 countries and is listed on the NASDAQ, has occupied 330sq m of first floor offices at the property since 2011.
Green Room is the only cafe serving the Workstation Business Park. It opened in 2010 and the cafe operators have just renewed the lease for 173sq m of space in the building.
The three tenants generate total annual net income of $515,910, Lyttle says. "With office investments in Addington providing significant cost benefits compared with the CBD, this property represents excellent value for purchasers - offering location, build quality and a strong tenant profile."
The Workstation Business Park has become an attractive proposition for businesses owing to its good access just off nearby Blenheim Rd, car parking and local amenities, he says.
"Addington has a great range of local cafes and is close to Tower Junction, Riccarton Mall and Hagley Park. These amenities have helped the area become a proven business location and a real alternative to the CBD."
In a level of parking the CBD can't match, 45 Princess St alone has 51 car parks, , Lyttle adds.
High demand for premises in Workstation Business Park has resulted in tight availability of office space, he says.
"All available space in the business park is leased, which is a reflection of the fact that Christchurch's new CBD is unable to provide economical, quality office accommodation. This type of high grade, cheap suburban offering has become highly sought after by tenants unable to afford CBD offices."
Other tenants in the business park include HP, EQC, Kindercare, Dynamic Controls and Central Plains Water.