Three fully-tenanted, street-level retail investment units are for sale in the new Lichfield Lanes development within Christchurch's Innovation Precinct.
Units 1, 2 and 5 at 150 Lichfield St, are being marketed by Savills agents Ben Cameron and Jesse Paenga, who are selling them by deadline private treaty closing at 4pm on Friday May 25.
Developed by Studio D4, Lichfield Lanes is a new hospitality development which puts a further piece of the Innovation Precinct jigsaw into place, says Cameron.
"This is a key new entertainment destination for Christchurch, offering locals and visitors more day and night dining options in the up-and-coming Innovation Precinct."
Lichfield Lanes is adjacent to the popular Dux Central development, the Innovation Precinct car park and the Vodafone Building. It contains seven ground floor cafe, restaurant and bar units in adjoining two and three-storey buildings, with boutique office space upstairs.
Paenga says the ground floor units are arranged along a wide, pedestrian-only laneway with seating, murals, plantings and overhead lighting. Two of the tenants are already open and trading, with more completing their fit-outs and scheduled to open in the next few weeks.
"This new development is another step towards the Innovation Precinct area becoming established once again as a laneway precinct, echoing the popularity of the Poplar Lane and Ash Street area pre-earthquake," he says.
"The neighbouring Dux Central development has already proved the viability of this area for hospitality operators. This is also illustrated by the fact that leases on the new units in Lichfield Lanes were very quickly taken up."
Paenga says the development's smaller scale is a vital part of the ongoing development of the Innovation Precinct, alongside neighbouring large-footprint structures including the Vodafone and Kathmandu Buildings and the Innovation Precinct car park.
"It's great to see more intimate public spaces and small commercial tenancies opening up alongside the larger buildings in the precinct and really injecting some life into the area. These finer-grained developments provide great places for people to gather and meet friends, with inviting touches like street art, seating and attractive night-time lighting."
Unit 1 fronts Lichfield St as well as the central laneway. It is split into four separate tenancies, with floor areas of between 47sq m and 82sq m. The tenancies are leased to Sushi Pop, Kiwi Viking Burgers, Neapolis Bar and Turkish Kebabs. Total annual net income from the four tenancies amounts to $142,987.50.
Each of the leases are for new terms of at least eight years, with fixed growth and further rights of renewal built in, says Cameron.
"The multi-tenanted nature of this investment is expected to make it very popular among investors. We know there are a lot of buyers out there who are looking for this type of small, split-risk commercial asset. This investment offers great fundamentals including long lease terms, income growth, a high-quality new building and a prime location."
The other two units are leased to single restaurant tenants which also have shared use of the central laneway for alfresco dining.
Unit 2 is a 123m2 space, with 44m2 of courtyard, leased to Jaba Steak House on a new eight-year lease with rights of renewal. The investment generates annual net rental of $70,680.
The 218m2 Unit 5 is leased to Alvarado's Mexican Cantina for a new 12-year term. Alvarado's also has the use of 90sq m of courtyard space and the rear of the unit opens on to another public laneway. Annual net rent amounts to $121,550.
Alvarado's is a Christchurch institution that has been operating for nearly 30 years, says Paenga.
"We're thrilled to have brought Alvarado's back to the CBD into this fantastic new development, following their move to the city fringe following the earthquakes," he says.
Lichfield Lanes is located just metres away from the East Frame housing development, which will help boost by 50 per cent, the number of people living within the Four Avenues compared to before the earthquakes, says Cameron.
"The first stage of East Frame housing construction is well underway just across the road, and the government's fast-tracked plans for a covered stadium just to the east the property is further great news for hospitality operators in this area."
The anticipated population increase in the central city, along with thousands of office workers who have moved into the several large new buildings in the CBD, is giving retailers and investors confidence to sign up to new developments which will service this large local customer base, Paenga says.