The Christchurch industrial property housing a leading New Zealand supplier has been placed on the market for sale.
The modern warehouse and office premises lie in the heart of the Wigram industrial precinct in southwest Christchurch.
The freehold property at 10 Hammersmith Drive is fully leased to a privately owned Canterbury company which has traded for over 30 years.
The company’s tenancy at the Hammersmith Drive site will provide a new owner with net rental income of $246,130 plus outgoings and GST per annum. Its new six-year lease comes with two further six-year rights of renewal, as well as annual CPI rental increases, with market reviews at renewal.
The land and buildings at 10 Hammersmith Drive, Wigram, are now being marketed for sale by way of an auction on Thursday July 1, through Bayleys Christchurch.
Salespeople Nick O’Styke and Harry Peeters said the property consisted of a building of some 1,907 square metres on approximately 2,850 square metres of freehold land.
“The rectangular site has a wide frontage of about 40 metres to Hammersmith Drive, plus a secure yard and generous on-site parking for 30 vehicles,” O’Styke said.
“It also benefits from a right-of-way easement running along the site’s northern boundary.
“Built in 2008 by leading contractor Calder Stewart, this is a modern A-grade industrial building whose favourable warehouse-to-office ratio makes it attractive for a wide variety of uses and tenants,” O’Styke said.
The building features a modern, high-stud warehouse of some 1,470 square metres with two roller doors and two canopies.
“At the front, there is a well-presented office split over two floors, with a reception, separate offices, boardrooms and a kitchenette, together totalling about 370 square metres. First-floor space also includes a balcony,” O’Styke said.
The Hammersmith Drive building has an Initial Evaluation Procedure seismic rating of 75 percent of new building standard. The site forms part of the Industrial Heavy Zone under Christchurch’s district plan.
Located about seven kilometres southwest of the city centre, Wigram has grown significantly in recent years due to housing developments.
Peeters said the industrial precinct in the east of the suburb was highly sought after.
“Tenant demand is high and vacancy low. Recent sales of industrial properties in Wigram and surrounding areas have seen yields for buyers ranging from 4.5 percent to more than six percent,” he said.
Occupiers neighbouring the Hammersmith Drive site include logistics firms, building and construction suppliers and transport and automotive businesses.
“Positioned on the eastern side of Hammersmith Drive, close to Wigram Road, the site for sale benefits from its proximity to major road and rail transport routes, including excellent motorway access,” said Mr Peeters.
“The Port of Lyttelton is within easy reach via nearby Curletts Road and the Southern Motorway.
“The property is within easy striking distance of a range of amenities on Lincoln Road, as well as The Landing retail hub including a New World supermarket.
“A property of this quality, in this location, with a strong lease covenant to a long-established business and built-in rental growth, represents an exceptional investment opportunity,” Peeters said.