Christchurch sales cap Colliers' year

Castle Rock Business Park, Mary Muller Dr, Hillsborough.

The South Island's largest industrial property transaction -- plus the sale of a famous Deco office building -- rounded out Colliers International's Christchurch commercial property sales for 2018.
Auckland-based property fund Augusta Capital Ltd this month announced it had bought the Castle Rock Business Park for $53.75 million. Colliers managing director Hamish Doig brokered the deal with industrial director Sam Staite. And it is thought to be the largest-ever industrial property transaction of its type in the South Island.
Also this month, Colliers sold the former State Insurance building on Worcester St, for the family of late Kiwi superbike designer, John Britten.
The property was bought by two young engineers, who plan to strengthen and restore the landmark heritage building, which was badly damaged in the earthquakes.
Courtney Doig, an investment sales broker for Colliers, says the buyers prefer to remain anonymous until they finalise plans.
Castle Rock, in Hillsborough, was an early mover in the business park sector, with a small group of investors establishing the park in the early 2000s.
It was built in multiple stages, including three properties added post-earthquake, and now houses 16 tenants.
Hamish Doig says the sale represents a significant investment from Auckland institutional capital and again demonstrates the confidence in Canterbury.
"Of the four bids we received, three were from North Island interests. We have been seeing significantly more interest in Christchurch investments from both private and institutional investors."
For instance, a private Auckland investor has recently bought a large industrial site in Christchurch, previously owned by T&G Global. The blue chip property attracted $100 million of offers.
Staite says there has been a lot more enquiry for Christchurch investment stock.
"We've seen national investors increasingly turning their focus to the Christchurch industrial market, because it's perceived to offer better investment returns than in Auckland.
"The market believes there's a very slim chance of the sector getting out of whack with the market in terms of oversupply."
Augusta managing director Mark Francis.
The substantial industrial property that will be the first Christchurch-based property for the Augusta Industrial Fund — and the largest one within it, says Augusta managing director Mark Francis.
"The Augusta Industrial Fund has four properties but, along with the acquisition of Castle Rock, this will shortly grow to nine.
"The vendors have developed a great asset since establishment of the business park — and it's one we believe has further potential," says Francis.
Augusta now manages seven Christchurch properties across its various managed funds and syndicates with a value of $193.58m.
Repair for Deco building
Meanwhile, the former State Insurance building, at 116 Worcester St, has been sold 'as is where is' for an undisclosed sum.
It comprises two integrated buildings — one of seven levels dating back to the 1930s, with another of nine stories added in 1968.
Courtney Doig says the buyers are honoured to have the opportunity to repair the building and make it a functioning asset for Christchurch's CDB once again.
"Knowing its architectural heritage and seeing John Britten's famous attention to detail, where he added his touches to the building, adds an extra element of provenance that they want to retain.
"There's so much potential for its future use, and they've been exploring a few different options."
Kirsteen Britten says her late husband, the engineering entrepreneur John, bought the building in the 1990s.
"He loved the Art Deco design and other heritage features and wanted to protect it for the benefit of future generations.
"As a family we've decided that it's time for someone else to revive this lovely old building and we're excited to see what the new owners do."
Doig says the Britten family had wanted to ensure the building's heritage was protected.
"The family is thrilled to see it go to safe hands — purchasers who recognise the unique Art Deco nature of the building — and they're looking forward to seeing the building revived.
"The buyers have engaged a talented Wellington architect who has specialised in similar projects and are confident he will do a stunning job to bring this superb building back to life. We have so few iconic buildings left, and this truly is one of a kind."
Designed by Cecil Wood, a leading New Zealand architect of the period, in association with Paul Pascoe, a well-known Christchurch architect, the building was one of the more significant building projects of its time.