Ex-IRD office building in Christchurch sells off-market

224 Cashel Street, Christchurch City, currently undergoing a full restrengthening and redevelopment programme, sold this month in an off-market deal for an undisclosed amount to one of Christchurch’s major commercial property firms Lichfield Holdings Limited. This expansive retail and office building is a prime investment opportunity in a rapidly transforming location directly opposite the new 30,000-seat Te Kaha stadium.

The sale is indicative of green shoots emerging in the commercial property sector, particularly around well-located, mixed-use buildings that offer modern amenities to businesses seeking a future-fit workplace. The impressive site is an eight-level building with space for retail and hospitality tenants on the ground floor, seven floors of 2,000 sqm each for offices, and over 200 secure carparks.

The ex-IRD office building at 224 Cashel Street has undergone extensive renovations and seismic strengthening since 2010.

Currently undergoing seismic strengthening and a comprehensive refurbishment, the project is expected to be completed by Q1 2024 and will feature an NBS rating of 100% at IL2, ensuring the utmost safety and peace of mind for tenants. Real estate firm JLL is leasing 224 Cashel Street, and agent Merv Davies, who brokered the sale to Lichfield Holdings, recognises the property’s potential as the surrounding area develops.

“This building offers a unique opportunity for businesses seeking a prime location in Christchurch,” says Davies. “With its strategic positioning, modern facilities, and the ongoing transformation of the area, we anticipate strong interest from local businesses seeking an up-to-date site in proximity to the very best that Christchurch has to offer.”

The central location means the property will benefit from the influx of visitors and vibrant atmosphere that the much-anticipated Te Kaha stadium will bring. It is also a stone's throw away from the thriving retail core of the Garden City, Te Pae Convention Centre, and city centre hotels.

“We have plenty of ongoing interest from potential tenants in the private and public sectors to take space in 224 Cashel Street,” says JLL sales and leasing agent Colin Barratt. “The convenient central location and proximity to premier attractions will continue to drive leasing enquiries for 224 Cashel Street and developments in the surrounding area, particularly as we get closer to the completion date for Te Kaha stadium.”

JLL sales and leasing agent Paul Lysaght suggests the sale of 224 Cashel Street is an indicator of current interest in the market for top-shelf properties.

“This site will contribute to the growth and vibrancy of Christchurch by offering a state-of-the-art space for tenants once seismic strengthening works are completed and tenancies are fully leased,” says Lysaght. “We expect more of these classes of development to be completed in the coming two years, with many sites pre-leased to ensure tenants get the pick of the bunch as buildings come online.”

New owner, Lichfield Holdings Limited, brings a wealth of experience in developing and building notable properties, such as the BNZ Centre on Cashel Street following the 2010 Christchurch earthquake.

Tenant fit outs are due to begin in Q1 2024.