Christchurch industrial property sold for $53.75 million, likely the largest sale in the South Island
/ Augusta News
A large industrial park in Christchurch, Castle Rock Business Park, has been sold for $53.75 million in what is believed to be the largest industrial property sale in the South Island.
The park, founded almost 20 years ago by Christchurch investors, has been sold to Augusta Industrial Fund, one of the new funds run by Augusta Capital, a property company listed on the New Zealand sharemarket.
Agents Colliers International in Christchurch said Castle Rock in Hillsborough, Christchurch, was an early mover in the business park sector. it was built in several stages and now had sixteen tenants.
They included Macpac, Wormald, TE Connectivity and Tyco.
Hamish Doig, managing director of Colliers International in Christchurch, brokered the deal with industrial director Sam Staite.
"This is a significant investment from Auckland institutional capital and again demonstrates the confidence in Canterbury.
"Of the four bids we received, three were from North Island interests. We have been seeing significantly more interest in Christchurch investments from both private and institutional investors," Doig said.
Augusta Capital managing director Mark Francis said Castle Rock would be the first Christchurch-based property for the industrial fund and the largest property within that fund.
The industrial fund currently consisted of four properties but, along with the acquisition of Castle Rock, would shortly grow to nine properties.
The fund had also purchased four Auckland industrial properties from other syndicates managed by Augusta. Each of the syndicates had voted to approve a sale to the industrial fund.
The five properties bought by the industrial fund cost $174m and once the acquisitions were completed would take the fund to about $294m.
To fund the five acquisitions the industrial fund would have a second capital raising of $110m.
A product disclosure statement was being prepared and at this stage was expected to be registered in late January 2019.
A further announcement regarding the capital raise would be made once the timing had been confirmed.
Settlement was at this stage expected to occur for all five properties on March 28, 2019.
Francis said the acquisitions were part of the industrial fund's strategy to deliver stable returns through tenant and location diversification and to grow the fund over the next two to three years with a view to a possible NZX main board listing in time.
It was also part of Augusta's strategy to develop and grow a range of multi-asset property funds.