Christchurch Technology Park buildings

Two identically designed office buildings are linked at 19 Sheffield St, Burnside. Photo / Supplied

A substantial Christchurch commercial property comprising three adjoining buildings near Christchurch International Airport is for sale offering the next owner an opportunity to build on its net annual rental income of over $500,000 a year.

At 19 Sheffield St, Burnside, in the Canterbury Technology Park, the property encompasses 5810sq m of land and 2767sq m of buildings, consisting of two identically designed three-level office buildings linked to a semi-circular two-level conference centre, incorporating a cafe.

The property, which features in Bayleys' first Total Property portfolio for the year, is being marketed by Nicolas Ching and James Chan of Bayleys' Auckland-based International Division in conjunction with Stewart White of Bayleys Canterbury. It is for sale by tender, closing on March 15, unless sold earlier.

Designed by Ian Krause Architects Ltd, the complex was built in the late 1980s. Its current owners undertook an extensive refurbishment project in 2016, says Ching. "This incorporated a replacement air conditioning system, new carpets, wallpaper and lift system along with repainting."

The two three-level office buildings, which both have floors ranging from 312-314sq m, are leased for six years from October 2017, with two six-year rights of renewal. One is occupied by a NZQA registered national wide private training establishment. The school has been operating for more than 20 years, delivering English language programmes to thousands of international students over this time.

The other building is head leased to CNZ Property Group Limited which focuses on commercial development projects in the Canterbury region. It occupies part of this building and sub leases the remainder.

The training school also leases 290sqm of ground floor space in the third building at the front of the property for a cafe used by both its students and the occupants of other nearby buildings in the technology park. This lease is for three years from October 2017, with two three-year rights of renewal.

"The balance of space in this building, comprising about 576sq m over two levels, contains conference, seminar and meeting facilities of varying configurations which are rented out by the current owner on a casual basis," says Ching.

In addition to the net annual income of $501,700 from the fixed-term leases to the training school and CNZ, the property has been producing additional annual income of over $60,000 from conference facility rentals and the leasing of car parks not used by tenants.

"There is an opportunity to build on this casual income or convert it to fixed term income," says Ching.

"The conference space could be converted to office accommodation and leased out longer term."

Chan says the large site also provides excellent parking. There are a total of 45 sealed outdoor carparks with two disability spaces, five visitor spaces and 40 spaces used by tenants. "The balance of the site contains extensive, attractively landscaped grounds incorporating trees, shrubs and grassed areas."

He says the property is well located on the corner of the Sheffield Crescent intersection with Sir William Pickering Drive, and also to the northern side of Sir Gil Simpson Drive within the 15ha Canterbury Technology Park, which is approximately 10 kilometres north west of the CBD.