Christchurch building a crown in Victoria St
The refurbished five-level Telogis building in Victoria St.
Countrywide Property is selling a stand-out refurbished five-level office and hospitality building, known as ‘The Telogis Building’ at 104 Victoria St in Christchurch.
“This freehold property is considered a ‘trophy asset’ on popular city hospitality, retail and office strip,” says Jonathan Lyttle, Christchurch managing director for Savills, who marketing it for sale for an asking price of $19,999,995.
Lyttle says the building is home to US-based GPS software firm Telogis, Chinwag Eathai restaurant & bar and Total Fitness gym.
“This high-profile spot on busy Victoria St is hard to beat as an investment location. Add in a reputable developer, a quality building and an excellent tenant mix, and this property has a very attractive set of investment fundamentals.”
He says the property’s high profile street exposure will make it a sought-after addition to investors’ portfolios.
“The Telogis building’s recent makeover, its ultra-modern visual appearance and well-known tenants will make it a cornerstone holding for any property investor.”
The split-risk characteristics of the asset and the new, long-term leases will be further drawcards, he says. “Multi-tenanted investments like this are always popular, and the long-term leases with rights of renewal lend the property excellent long term investment fundamentals.”
Countrywide Property bought the earthquake-damaged 3438sq m building and completed major refurbishment and strengthening work to 100 per cent of new building standard (NBS) in 2014, Lyttle says. “The refurbishment project transformed the building into a stunning modern structure with plenty of natural light and a contemporary fit-out.”
As well being stripped back to the framing and almost completely refurbished, the building was also extended at the front and rear to give more space to all the floors, which are around 700sq m in size. The three tenancies generate annual net rental income of just over $1.4 million, with rent reviews built in to the leases.
Telogis, which occupies the four office floors, is a privately owned US company that develops location-based mobile software. It is recognised as a leading global GPS company. The Victoria St property is home to the company’s world research and development headquarters, with over 140 staff on the premises.
“The ground floor tenants provide portfolio diversification and are also well known in Christchurch. Tony Astle’s Chinwag is one of the most popular restaurants and bars in town and is always busy, with the Total Fitness gym well patronised by the many office workers nearby,” says Lyttle.
Telogis holds a 10-year lease with the option to renew for two further terms of 10 years each. Chinwag and Total Fitness both hold eight-year leases, also with rights of renewal. All the leases date from mid-2014..
Lyttle says the sale of the building comes at a time when good quality property investments in Christchurch are in high demand and difficult to come by.
“Investors are continually inquiring about new or modernised commercial buildings in good locations in Christchurch, with low borrowing rates making the asset class an attractive buy. “Even though yields have sharpened, commercial property still looks extremely good alongside bank deposits.”
Countrywide managing director Richard Diver says the building’s sale will help fund other projects he is working on in Christchurch.
“We expect strong interest in this A-grade property given its high profile position on Victoria St. Its size and strong tenant mix will appeal to property investors in Christchurch and around New Zealand. We may also have inquiries from rural investors looking to diversify or reallocate capital into higher-return options.”
The 1415sq m site has dual street entry points from Victoria St and Montreal St, as well as on-site car parking, says Lyttle. “The two street access ways are a real plus for tenants at times when Victoria St is busy.”
Victoria St was the first part of the central city to be regenerated since the earthquakes. It is now characterised by modern architecture, with several new and refurbished buildings that are home to professional services firms and many of the city’s best restaurants and bars.
View the property here.
Jonathan Lyttle, Savill’s Christchurch managing director