Vast landholding on CBD fringe; high-density housing potential

A mixed-use investment property for sale on the Christchurch central city fringe includes a large land holding and high-profile location.

Four buildings stand on the 9065m2 site at 442-472 Tuam St, Phillipstown, the last of which was added with the purchase of property next door last year to cope with growing tenant demand.

The holding, which is split into multiple freehold titles, has three street frontages on a corner close to the site of the new Canterbury Multi-Use Arena Te Kaha.

Mark Macauley of Colliers said high-density housing was one option for the vast landholding.

‘‘Under the current review of the Christchurch City Plan, the proposed zoning may change from Industrial to Mixed Use, allowing for further intensification of the land and the potential for high density residential, underpinning the value of this opportunity,’’ Macauley said.

‘‘The property’s multi-tenant occupancy and strong underlying land value paired with future redevelopment opportunities ensure it will be attractive to an astute investor or developer.’’

The majority of the site was originally occupied by bakery Ernest Adams, he said, until the current owner bought the site in 2007 and set about transforming brightly coloured buildings with a diverse mix of tenants providing a spread of risk.

Food manufacturing is not entirely lost to the property, with the complex now anchored by Tuck/Cloud Kitchens providing individual preparation kitchens for the likes of vendors at Riverside Market.

Tuck’s sub-tenancies occupy building 3 and expanded into the recently acquired building.

At the corner of Tuam and Phillips Streets, building 1 comprises office and warehouse space and is leased to Revolution Church with an auditorium and associated office facilities.

Building 2 is subdivided into five self-contained tenancies and has been upgraded into a mix of offices, amenities and warehousestyle fitness and dance studios. Between the two larger buildings is a small standalone workshop.

Macauley said the tenancies ranged in size from 72.64m2 to 1200m2, providing total annual net income of about $1.2 million.