Bang for buck Christchurch retail investment

A convenience retail hub comprising four fully‑tenanted shops has come to the market in one of Christchurch’s most established inner-eastern suburban commercial precincts.

Positioned on a freehold site at 9 Buckleys Road, Linwood, the property sits directly opposite the rear entrance to Eastgate Mall and close to a McDonalds outlet, benefiting from steady foot traffic and vehicle movements.

Held in one title, the approximately 1,829sqm site supports around 736sqm of improvements and offers generous on-site customer carparking. Constructed in the mid to late-1970s, the well-maintained building has a seismic assessment of 63 percent NBS completed in June 2014.

Second-hand goods and financial services provider Cash Converters occupies the largest of the retail tenancies, with the 362sqm store set back from the street and having strong branding profile. Next door to this is the Linwood Laundromat with 158sqm of space, then two smaller tenancies occupied by Cosmic Corner, and Shosha Linwood, with the property also hosting a cell tower for telco business 2degrees.

The property generates net annual rental income of approximately $183,319 with tenants on varying lease terms structured with rights of renewal and rent review mechanisms.

The surrounding area features a mix of residential and commercial activity, reinforcing the location’s role as a key service node for the wider Linwood community.

Bayleys Christchurch commercial brokers Graeme Donaldson and Steven Schwalger are marketing the property by deadline private treaty closing Thursday 21st May, unless sold prior.

The Buckley Road property’s diverse tenancy mix reduces reliance on any single occupant, providing strong income stability and minimizing vacancy risk, says Donaldson.

“The tenancies are fairly generic in terms of layout and adaptable for a wide variety of occupiers which gives an owner confidence looking ahead. The landholding is also underpinned by a favourable Town Central Zone designation, which we understand supports building heights of up to 22 metres which generally correlates to six storeys.

“This zoning allows for larger scale retail, community and entertainment activities/facilities, hospitality and visitor accommodation, along with residential use if it sits above ground floor commercial space.”

Donaldson says there is inherent income upside to be realised from the property, with rental growth provisions in place to enable this.

“Investors are increasingly looking for properties in the immediate city-fringe, knowing that demand ripples outwards from the CBD. Linwood is well-located to leverage this, and is considered a very affordable suburb for investment.

“Neighbourhood shopping centres continue to stand out as one of the strongest performers within the retail sector, driven by the enduring appeal of convenience-based shopping. With recent fuel price increases, this trend is set to strengthen further as consumers opt to keep their shopping and essential services close to home.

“This reinforces the value and resilience of well-located local retail centres.”