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  • Writer's pictureReal Estate Today - New Zealand

Colliers Breaks New Ground with Strategic Sale of Industrial Properties in Christchurch

In a notable shift in the Christchurch property market, Colliers International has successfully orchestrated the sale of two industrial buildings at 92 & 107 Magdala Place, located in the suburb of Middleton.

This transaction emerges as a strategic manoeuvre, distinguishing itself from the conventional real estate narrative previously dictated by other agencies.

The two properties, which had lingered on the market under another agency's leasing efforts, faced challenges due to their potential requirement for multiple occupiers—a factor that had notably shrunk the pool of prospective tenants.

However, Colliers redirected the strategy away from seeking individual tenants towards finding an owner-occupier with the capacity and foresight to utilise both buildings either sequentially or simultaneously.

The innovative approach taken by Colliers leveraged their extensive national relationships to pinpoint the perfect occupant for these assets. They found a national retailer looking to establish a new distribution centre on the South Island, demonstrating the attractiveness of purchasing existing properties over new builds.

The benefits pitched to the buyer included immediate operational capacity with the flexibility to expand and generate investment income by leasing one of the buildings until it was needed.

Sam Staite and Paul Marshall, representing Colliers Christchurch, played pivotal roles in the negotiations that led to the unconditional sale of the properties. Their efforts culminated in a sale that not only provided the new owner with immediate benefits but also strategic advantages for future expansion.

Following the purchase, the new owners adeptly secured a tenant for one building, creating a consistent revenue stream while planning their expansion into the additional space.

This move underscores the strategic foresight of purchasing existing properties, which offers both immediate utility and potential for future income.

This sale is particularly significant as it demonstrates the effectiveness of innovative real estate strategies over traditional methods, particularly in a market as challenging as industrial real estate in Christchurch.

The success of this transaction is a testament to Colliers' deep market knowledge and their ability to adapt strategies to meet both market conditions and client needs.


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