Data centre site beside new stadium up for sale

The property housing a One NZ data centre has gone up for sale in the shadow of Christchurch’s new showpiece inner-city indoor stadium.

The Barbadoes Street site sits around 50 metres north of the soon-to-open One New Zealand Stadium.

Vendor One NZ will continue to occupy the approximately 656-square-metre data centre facility under a long-term leaseback arrangement. This, plus a lease for a cell tower on part of the more than 1,800-square-metre site, will deliver new owners a total net rental return of $210,000 plus outgoings and GST per annum.

The initial lease to One NZ will run for 10 years from settlement date, with built-in 2.75% annual rental growth.

The cell-tower lease to Fortysouth Group runs to 2060 (subject to termination rights), with rent reviewed to CPI every three years.

The freehold property at 249 Barbadoes Street, Christchurch, is being marketed for sale by Jesse Paenga and Nick O’Styke of Bayleys Canterbury. It will be sold by way of a tender closing on Wednesday 10 December, unless sold prior.

Paenga said the property offered a first-class ‘bottom drawer’ investment with outstanding future potential.

“Positioned at the northern edge of the exciting new stadium precinct, this shapes as a crowd-pleasing investment with rock-solid income anchored by a long lease with a strong corporate covenant. Majority-owned by Infratil, One NZ is a nationwide digital and connectivity company supplying mobile, broadband, and technology products and services to consumer, business, public sector and wholesale customers.

“Data centres are critical infrastructure, offering a defensive positioning against economic ups and downs, but with huge growth potential driven by relentless expansion in digital services. New Zealand’s data centre market is projected to see compounding annual growth of around 10 percent through to 2030.

“Being right next to One NZ Stadium, the $683 million state-of-the-art centrepiece arena due for completion within months, this asset has pride of place in a rejuvenated city centre. As a key civic and economic focal point, this area is assured of sustained investment for years to come,” Paenga said.

The Barbadoes Street data centre encompasses a single storey building with a loading area and generator enclosure. The property was refurbished in 2016 and has a seismic rating of 100 percent of new building standard. One NZ plans to fit the roof of the main building with solar panels, which will be owned and maintained by the tenant.

The cell tower sits on approximately 35 square metres of land at the site’s northeastern corner.

O’Styke said the location near the corner of Barbadoes and Hereford streets, two of the city centre’s main thoroughfares, provided excellent exposure and accessibility.

“This is the beating heart of the CBD, a revitalised location designed for both technological advantage and long-term urban resilience. One NZ Stadium is half the length of a rugby field away. Te Pae Christchurch Convention Centre, key shopping precincts and the main bus station are also within a short walk.

“Beyond the property’s foreseeable future as a data centre, the location and Central City Mixed Use zoning underpin long-term redevelopment possibilities for a multitude of other uses as part of this zone’s status as a focus for retail, offices and commercial services,” O’Styke said.