Investor exits Chch with big sell
The biggest office block in the Christchurch suburb of Papanui has been put up for sale by owner DNZ Property Fund.
The five-storey office building, in Winston Ave just off Main North Rd, is fully leased to the Ministry of Social Development as its South Island regional office, and houses departments including Work and Income, and Child, Youth and Family. The complex includes a multi-level parking building alongside.
DNZ Property Fund is a stock- exchange listed fund owning around 50 properties, together valued at $667 million, across the country. It has decided to sell the Papanui site and release capital to help fund a property development and purchases in Auckland.
Last year the company sold its only other Christchurch property, a Hornby industrial building, to tenant Value Tyres for $10m.
It has considerable assets in the North Island, where tenants include Bunnings, Progressive Enterprises, the Government, Fletcher Building and ANZ Bank.
On Friday the fund settled on the $25m purchase of land for the 34,000sqm Westgate Town Centre development, a proposed complex of offices, restaurants, shops, entertainment and accommodation in northwest Auckland.
Two months ago it settled the $78m purchase of the Silverdale Centre, a 36-store mall on 7 hectares in Silverdale just north of Auckland.
DNZ bought the Papanui property for $6.95m in 2005. The site has a rating valuation of $8.56m, of which $6.78m is land value. Both buildings were constructed in 1992.
As well as having the ministry as its sole office tenant over four floors, the property leases car parks to Wilsons Parking and roof space for mast and repeater towers to phone companies Vodafone, Woosh Wireless and 2degrees. These combine to make a net yearly rent of $681,000.
Realtor Layne Harwood of Knight Frank, who is marketing the property with Bayleys agents, says its market value falls within the $7.5m to $8.5m bracket.
The six-year office leases run until 2017, with renewal rights for three three-year periods. The land has a business zoning, and is near Northlands shopping mall and an industrial development planned for the Bridgestone factory site.
Offers for the property close next week.
"It's a property person's property, it needs someone who could work it up in case there were some vacancies," Harwood says. "It's a bit of a landmark property, we've had quite a bit of inquiry. There's not much in the way of office property out there."
The building suffered minor damage in the earthquakes, reopening four days after the September 2010 quake and two weeks after February 2011.