Prime Christchurch CBD investment in Cashel Mall among top company

The opportunity to acquire an entire office and retail building in the heart of Christchurch’s CBD, fully leased to three well-known tenants, is on offer via CBRE.

236 High Street occupies an ‘ultra prime’ location in the core CBD precinct, facing directly onto Cashel Mall opposite the ANZ Centre and The Crossing.

The extensively refurbished building is home to property investment company Opes Partners on the two office levels, with a popular Huffer retail store on the ground floor. Together, these two national tenants contribute nearly 90% of the property’s income and provide excellent tenant covenants. The award-winning Austin Club cocktail bar in the basement space provides further income diversification.

CBRE Christchurch Managing Director Tim Rookes, who is marketing the property with Associate Director of Capital Markets Cameron Darby, said the property represents an extremely rare opportunity for investors to secure a prime investment in Christchurch's most tightly held CBD retail dress circle.

“This building is an absolute gem which keeps excellent company - rubbing shoulders with some of the biggest post-earthquake retail developments in Christchurch including the ANZ Centre, The Crossing and the Grand Central Building.”

Its location adds significant prestige, resulting in a highly desirable asset on a scale which is accessible to many investors, said Darby.

“For individual investors, family trusts and private syndicates, this package is hard to beat, offering a strong-performing, multi-tenanted investment in an ultra prime CBD position surrounded by international corporate and retail brands.”

The 850sqm (approx.) building was completely stripped out and refurbished in 2015 and provides stunning, corporate-grade office accommodation along with retail space fronting Cashel Mall. 

Its location and size means it will always be in demand among small to medium-sized office occupiers looking for CBD space, Rookes said.

“The 550 square metres of office space in this building sits within the highest-demand size bracket in the Christchurch CBD. There is a significant undersupply of offices under 600 square metres in the core CBD and our office leasing team has a large list of frustrated tenants struggling to find space.”

This demand has contributed to office vacancy plummeting to record low levels, with just 0.5% of office space in the core CBD precinct vacant as at December 2023 (down from 3.6% in June), according to CBRE Research. 

Demand from retailers is also very high in the core CBD precinct. Ground floor retail premises facing Cashel Mall along Cashel Street and High Street are fully occupied, with waiting lists of national and international tenants wanting to enter the Christchurch CBD. 

“From a retail perspective, the Huffer store is in a highly desirable position, with its Cashel Mall frontage making it extremely sought after among the many prospective tenants looking at Christchurch for store network expansion.”

Further enhancing the scarcity value of this building is the fact that quality, tenanted property in Cashel Mall rarely changes hands, said Darby.

“This asset will appeal to a very broad group of investors, offering the opportunity to enter the CBD property market in a location where typically only the big players are present. We have seen strong competition for the few assets which have transacted, with buyers recognising the high demand in the core office and retail precinct which is forecast to persist as population, migration and tourism trends continue to benefit Christchurch.”

The building currently earns $425,280 in net annual rental income, with the three well-established tenants offering a diversified income stream across the office, retail and hospitality sectors. Income growth is also built into the leases.

Its exceptional yet understated design both inside and out exudes urban chic, Rookes said.

“The building’s interiors have real wow factor, from the light-filled office spaces to the Austin Club with its secret laneway entrance. As part of the Inkster Company’s stable of venues, this bar is consistently rated among Christchurch’s best night spots, drawing crowds with high quality service, drinks and live music.”

Occupying a 395sqm (approx.) freehold site, the building is surrounded by top office and retail occupiers including ANZ, MBIE, ASB, Mecca, H&M, Glassons and Lululemon, to name just a few immediate neighbours. 

“The upcoming opening of Te Kaha Stadium is the final piece of the puzzle which will complete the activation of Cashel Street between the river and the stadium,” Darby said. 

Prominent developers have demonstrated ongoing confidence in this area, with one of Christchurch’s largest investors and developers, Tim Glasson, having recently purchased the neighbouring property.

Carter Group’s planned office and retail building on the former Holiday Inn site, opposite The Crossing and the Grand Central Building, is also fully leased, with construction underway.

“This is hands down the most exciting part of the CBD in terms of the activation of the surrounding area, and the opportunity to own a stake in it - as well as the ongoing high demand on Cashel Mall - is expected to generate a lot of interest.”