Agents hope that an unsatisfied appetite for investment properties in Auckland will help to fuel demand for a large industrial site in Christchurch, owned by T&G Global.
Formerly known as Turners & Growers — with more than 120 years trading in this country — T&G Global is a national leader in growing, packing, shipping and marketing.
Located at 39 Dakota Cres, Wigram, the 8100sq m building for sale and leaseback sits on 18,190sq m of land zoned Industrial Heavy and includes 99 car parks. It earns $965,000 annually.
Purpose-built in 2004, the Dakota Crescent facility, home to T&G Global's Christchurch distribution centre, is ideally suited to the company's needs. All on one level, it has warehousing, cool and cold-storage, a central freight tunnel and quality office amenities.
Sam Staite, director of industrial sales and leasing at Colliers International, Christchurch, who is marketing the property for sale by deadline private treaty closing 4pm November 7 unless sold earlier, says the company is committing to a long-term lease-back on the property, in order to help facilitate further business expansion.
A new 12-year lease has fixed rental increases throughout the term.
"Wigram is highly sought after and T&G Global is a blue chip tenant; the lease terms are extremely desirable, and the large freehold land holding makes this a bottom draw investment.
"The building site coverage of about 46 per cent may allow for some further expansion. The building has been constructed with two wings offering future ability to multi-tenant.
"The excellent access and yard areas, coupled with relatively generic improvements, ensure this facility will have excellent long-term appeal to the cool storage, transport and distribution markets."
Staite, who is marketing the property with colleague Greg Goldfinch, notes a marked increase in interest from outside Christchurch, particularly during the past eight months.
"There's a lot more inquiry for 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 two markets are different. Canterbury has a very strong agricultural outlook that feeds directly into the industrial sector. It's all about the basics — food, water, shelter. Auckland is largely about consumption, distribution and supplying the high population base, Christchurch is about output and export and that drives the industrial market."
Staite says a recent off-market campaign for a large industrial asset in Christchurch attracted more than $210m in offers — all from parties outside Christchurch. The property is now under contract.
Earlier this year, Auckland-based syndicator Silverfin bought Metro Glass at 704 Halswell Junction Rd for $18.6m and another Hornby site at 55 Lunns Rd for $12.94m.
Goldfinch confirmed Auckland investors were looking further afield.
"With demand outstripping supply in Auckland, we are seeing investors broaden their investment criteria and look to other centres such as Christchurch in the search for quality opportunities.
"Industrial investment offerings remain in high demand."