$57.75 million for Tait Technology Centre in Christchurch
Auckland syndicator pays $57.75 million for Tait Technology Centre in Christchurch
Christchurch, 14 September 2017 - An Auckland-based syndicator has bought Tait Technology Centre in Christchurch for $57.75 million in an unconditional deal, and is now well advanced in selling down the investment parcels.
The sale comprised the head office, at 245 Wooldridge Road, which is sited on 2.2723 hectares, and the assembly plant at 558 Wairakei Road, with a total land area of 2.7049 hectares.
Hamish Doig, managing director of Colliers International (agency) in Christchurch, who marketed the technology campus with investment broker Noel Gilchrist, said 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 said 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% for the industrial fund and 8% 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 said high calibre syndicates were 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.”
Noel Gilchrist said the Tait Foundation was 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 asset.”
Built in 2014, the Tait Technology Centre is the global headquarters of Christchurch company Tait Communications.