High Return Offered on Fully-Leased Property in Addington

21 September 2017

A fully-tenanted building in Addington, Christchurch, is on the market for sale through Savills, offering investors one of the highest returns seen on high-quality commercial property in the city in recent years.

45 Princess St is located in the popular Workstation Business Park and is home to Whitebait TV, Hudson and Green Room Café. It is on the market for $5,430,000, representing a 9.5% return based on the asking price. Offers close on Wednesday September 27.

Savills Managing Director Jonathan Lyttle says the property is an excellent opportunity for a buyer to gain an exceptional return on their investment.

“Yields like this are simply never seen on quality, fully-tenanted investment properties in the current market. It’s a really compelling option for investors who are seeking higher returns than are commonly available.”

The three tenants are well established at the property, which consists of two adjoining seismically-strengthened buildings. The major tenant, Whitebait TV, invested around $1.5 million on a significant upgrade and fit-out when it moved to the property in 2009, says Lyttle.

“This resulted in a highly specialised, bespoke studio facility which Whitebait uses to produce several well-known shows including What Now, which is New Zealand’s longest running children’s programme.”

Whitebait is the largest film production company in the South Island. The 1,994sq m tenancy includes reception, main film studio, offices and secondary studio space.

Global recruitment company Hudson, which operates in 20 countries and is listed on the NASDAQ, has occupied first floor offices at the property since 2011. Green Room Café is the only café serving the Workstation Business Park. It opened in 2010 and the café operators have just renewed their lease.

The three tenants generate total annual net income of $515,910, Lyttle says. “With office investments in Addington providing significant cost benefits compared with the CBD, this property represents excellent value for purchasers – offering location, build quality and a strong tenant profile.”

The Workstation Business Park has become a compelling proposition for businesses owing to its good access just off nearby Blenheim Rd, car parking and local amenities, he says.

“Addington has a great range of local cafés and is close to Tower Junction, Riccarton Mall and Hagley Park. These amenities have helped the area become a proven business location and a real alternative to the CBD.”

45 Princess St alone has 51 car parks, a level of parking which the CBD cannot match, Lyttle adds.

High demand for premises in Workstation Business Park has resulted in tight availability of office space, he says.

“All available space in the business park is leased, which is a reflection of the fact that Christchurch’s new CBD is unable to provide economical, quality office accommodation. This type of high grade, cheap suburban offering has become highly sought after by tenants unable to afford CBD offices.”

Other tenants in the business park include HP, EQC, Kindercare, Dynamic Controls and Central Plains Water.

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