Christchurch MSD Investment

The standout near-new building housing one of New Zealand’s largest government agencies on a long lease is up for sale in a bustling Christchurch local centre.

The single-storey building on a nearly 1,100-square-metre site on Auburn Avenue, Upper Riccarton, is leased to the Ministry for Social Development (MSD) as one of nine MSD service centres serving the Canterbury region.

With a nationwide network of centres serving over a million people, MSD is the country’s lead agency for the social sector. Its work spans housing, superannuation and employment services, income support and providing student allowances and loans.

The ministry fully occupies the Riccarton site with around 10 years still to run on the current 12-year lease, plus three further three-year rights of renewal.

The lease generates a Crown-backed gross rental return of $367,900 per annum, with built-in CPI and market rent reviews.

An extensive array of rooftop solar panels will provide new owners with a supplementary income from selling solar electricity to the tenant.

“There is simply no better tenant for a commercial property investment than the Government,” said Bayleys salesperson Jeremy Speight.

“This property is hard to beat as a largely ‘set-and-forget’ investment with a high-calibre government tenant, long-term lease, Crown-backed growing rental income, and a near-new, low-maintenance building.

“The investment draws further strength from the bustling Upper Riccarton location, strategically located for MSD clients,” Speight said.

The freehold land and buildings at 51 Auburn Avenue, Upper Riccarton, Christchurch, are being exclusively marketed for sale by Speight, of Bayleys Canterbury.

The property will be sold by deadline private treaty closing on Thursday 16 April, unless it is sold earlier.

The approximately 805-square-metre building is underpinned by a freehold landholding of some 1,095 square metres, with onsite parking for five vehicles, including four secure parks.

Constructed to high standards in 2024, the standalone building features a highly functional office layout including public facing areas, meeting rooms and amenities, and a seismic rating of 100 percent of new building standard.

The Auburn Avenue property sits within the Local Centre zone under Christchurch’s district plan. This applies to local retail destinations, often with community facilities, and wider ranging activities such as offices, accommodation, hospitality and entertainment.

The site is opposite a Woolworths supermarket to the west. Just to the north is the Bush Inn shopping centre, home to a diversity of retail offerings.

“Being located in the predominantly residentially populated Upper Riccarton, and within easy reach of the city centre, 51 Auburn Avenue is ideally located for MSD’s clients,” Speight said.

“The area has a high student population, with the Upper Riccarton retail hub being the closest shopping centre to the University of Canterbury. With ongoing expansion of the university, this area is expected to develop further into a destination for shopping, hospitality and services.

“This location is easily accessible from other parts of the city by car or by public transport thanks to its proximity to the major arterial bus route along nearby Riccarton Road,” Speight said.