Five big Goodman Christchurch buildings on the market

11:30 AM Friday September 4, 2015 Colin Taylor

Three of the buildings for sale are identified by their tenants in this aerial photo of the Goodman-owned Glassworks Industry Park at Hornby.

Colliers International is marketing for sale five prime properties in Christchurch on behalf of Goodman Property Trust which comprise three new buildings in the Goodman-owned Glassworks Industry Park at Hornby and another two buildings in the Show Place Office Park at Addington.

“We’re expecting these properties to attract considerable interest,” says Mark Macauley, Colliers’ general manager of commercial sales and leasing in Christchurch, who is marketing them for sale by deadline private treaty closing on September 23.

“This is one of the most significant portfolios to come to the market in Canterbury since the earthquakes,” Macauley says. “They’re modern, rate seismically at 100 per cent of new building standard, are well located with excellent tenants. Additionally, they can be bought as one large asset or purchased separately. 

“This is a very attractive proposition and we always have institutional investors, syndicates and private passive investors seeking high quality properties like these.”

The Glassworks Industry Park trio of buildings houses well-known firms MOVE Logistics, DHL, Packaging House, Cirtex and Bridgestone. The total net lettable floor area of the buildings is nearly 30,000 sq m spread over 3.5 hectares of land. All the buildings were completed in 2014 and have a staggered lease expiry.

The two Show Place Office Park buildings in Addington are the IAG building at 12 Show Place; and the gym and café at 14 Show Place; which have a total net lettable area of 7881 sq m. IAG has a nine-year lease on the buildings expiring in 2025 with further rights of renewal.

“These properties have an excellent car parking ratio, and built in rental growth,” Macauley says.

Goodman has recently refurbished the buildings within Show Place, a campus styled estate, encompassing 25,000 sq m of modern office accommodation with a range of on-site facilities.

Late last year, Goodman sold two Glassworks’ properties: Placemakers for $7.2 million representing a 6.5 per cent yield; and Big Chill for $7.1 million for a 7.1 per cent yield.

Macauley says Glassworks is one of the most sought after industrial developments in the city and is home to a mix of high quality national and international tenants.

Show Place Office Park, Addington, Christchurch - with IAG tenanted buildings for sale identified.jpg

The IAG tenanted buildings for sale in Show Place Office Park at Hornby.  

“Its location has greatly benefitted from an improved motorway system and is set to gain further efficiencies when the second stage of the southern motorway is complete with major off ramps to Halswell Junction and Shands Rd on either side of Glassworks.”

John Dakin, chief executive officer of Goodman (NZ) Ltd, says the trust’s sales are part of a continuing programme of releasing capital for reinvestment and divesting “if the price is right”.

The disposals are part of a wider asset sales programme. We are focused on organic growth with increased levels of development activity being funded through asset sales. The Trust completed almost $150 million of asset sales in the last financial year, with around 25 per cent of these sales in Christchurch.

“Strong property fundamentals and robust investor demand resulted in sharp prices being paid and strong gains being recorded. The Christchurch investment market continues to be strong and offers some of the greatest opportunities for capital recycling.”

Dakin says Goodman expects to announce between $100 million to $150 million of new development projects this financial year, funded through asset sales in both Auckland and Christchurch.

“Goodman Property Trust has developed around 40,000 sq m of industrial and office space in Christchurch since 2008 and we continue to actively seek customer pre-commitments in this location. Occupier or customer demand is currently strong across all our estates with the majority of recent new development projects announced at Highbrook Business Park in East Tamaki,” he says.