Tait campus sold for $57m to Auckland syndicator
An Auckland-based property syndicator has bought Tait Technology Centre in Christchurch for $57.75 million in an unconditional deal, and is selling down the investment parcels.
The sale included the head office, at 245 Wooldridge Rd on 2.2 hectares, and the radio technology assembly plant at 558 Wairakei Rd, on 2.7ha.
Tait's directors including executive director Garry Diack said the money would be reinvested which would support dividends paid to the owner, Tait Foundation, established by founder Sir Angus Tait who died aged 88 in 2007.
Syndicator Glaister Ennor has already sold a large number of the investment parcels of $25,000 each.
The technology campus was marketed by Hamish Doig and Noel Gilchrist of Colliers International in Christchurch.
Doig said Glaister Ennor had put the properties into two funds - the Tait Industrial Investment Fund, and the Tait Office Investment Fund.
"All investors know what the game plan is. There is a clear intention, not only to provide a healthy annual return of 9 per cent for the industrial fund and 8 per cent for the office fund, but preservation of capital is absolutely paramount," Doig said.
"Various mechanisms in the contractual procedures have certainly assisted in minimising any potential risks."
The buildings were sold subject to a 15-year lease with a "guarantee" of forecast rental growth, Doig said.
The sell down of most of the syndication had already been completed to Glaister Ennor clients and there were only a few hundred $25,000 units left in the office investment fund.
Doig said he was impressed with the level of due diligence undertaken by the syndicator during negotiations. High calibre syndicates were proving popular with investors.
"The beauty of shared ownership is that it enables people with significant capital to pool their resources to get into higher priced and often higher yielding opportunities.
"Lower value properties attract a lot of people competing for them but significantly priced properties such as these have fewer people capable of investing at these levels."
"To get an unconditional result of this nature is further testimony of the healthy state of the investment market in Christchurch and reflects the quality of the asset."
Built in 2014, the Tait Technology Centre is the global headquarters of Christchurch company Tait Communications.
The market for commercial investment property in Christchurch has been relatively subdued since the 2011 earthquakes and only a few have come to market.
From a seller's perspective a syndication may sometimes provide a quicker sale. Syndication includes the risk of a single asset investment but better returns due to the higher debt structure.