New Christchurch student hall for sale
Kirkwood Avenue Hall in Upper Riccarton accommodates 74 students. Photo / Supplied
Newly-opened student accommodation in Upper Riccarton close to the University of Canterbury is to be sold by its Hamilton owners who have committed to their next project.
Kirkwood Avenue Hall accommodating 74 full-time students, opened this year, as a self-catered hall for first year students.
The property at 7-15 Kirkwood Avenue was previously the St Nicholas Aged Care Facility operated by Bupa NZ, says Courtney Doig, investment broker for Colliers International Christchurch, who is marketing the property for auction on April 13.
The land holding of 5900sq m is in three titles and the building itself covers 2630sq m.
Doig says the new hall has helped to address a scarcity of quality student accommodation close to the university. The university has a 12-year lease on the recently refurbished property with a further right of renewal of nine years.
“This is a highly sought after area, right in the heart of residential Ilam/Upper Riccarton. There are a number of savvy buyers looking for student accommodation investments, however, there have been very few conversions of this scale and quality.”
Doig says six ownership units just along the road at 12 Kirkwood Ave, also leased by the University of Canterbury, sold in 2015 for $1.4 million.
“We think this latest property will be snapped up by someone looking for a significant land holding with a solid tenant covenant that earns annual rent of $320,000 net,” she says. “The university has a long-term commitment but if it does vacate the property at some future date, there is a high underlying land value given the property's location in a high value residential suburb directly opposite the university.”