North Canterbury Town Centre’s Community Commercial Hub Placed On The Market For Sale

A substantial portion of the commercial hub servicing one of New Zealand most recently established and fast-growing satellite townships has been placed on the market for sale.

The two properties are located in Pegasus Town Centre - some 25-minutes’ drive north of Christchurch - and include the suburb’s foremost hospitality destination overlooking Lake Pegasus.

Immediately adjacent to State Highway One, the master-planned township of Pegasus began emerging from rural farmland in 2006, with the first section titles issued in 2008. By 2010, the bulk of the community facilities were completed - including the genesis of what is now the core commercial centre.

Since then, an 18-hole golf course and primary school have been added to community infrastructure. The town is now made up of 1,800 residential homes sustaining a population of approximately 6,000 people – with additional residential dwellings planned and under construction.

Pegasus Town commercial centre lies at the heart of the township and services the immediate and wider residential catchments of Waikuku Beach, Kaiapoi, Rangiora, Woodend and Ohoka - whose populations are expected to grow significantly with continued migration out of Christchurch into the North Canterbury region.

The properties for sale encompass two addresses – 62 Pegasus Main Street and 8 Tahuna Street – sitting on a combined landholding of 4,169-square metres. Both modern structures have access to substantial car parking spaces.

Constructed in 2018, the purpose-built single-level 363-square metre boat shed style building at 62 Pegasus Main Street - housing The Good Home Gastro Pub has views over Lake Pegasus. Sitting on some 1,219-square metres of land, the location also has a quarter-share in car parking space for approximately 86 vehicles.

Meanwhile, the attractive two-level 1,412-square metre commercial building at 8 Tahuna Street was constructed around 2010 and contains anchor tenants Waimakariri District Council and Ray White. Sitting on some 2,950-square metres of land, the ground floor includes five retail units, while the first floor has six office spaces – with all tenants having shared access to amenities and around40 car parks.

The Tahuna Street and Pegasus Main Street land and buildings are now being jointly marketed for sale by deadline private treaty through Bayleys, with offers closing on December 9, 2021, unless sold prior. Director of Investment Sales Layne Harwood and broker Alex White said the two properties offered a diverse tenancy mix of retail, commercial, service and hospitality uses.

“Positioned in the heart of the Pegasus residential precinct, Pegasus Town Centre is an outstanding amenity that supports both the local community and visitors. This offering comprises two of the three commercial buildings within the town centre,” said Harwood.

“Being relatively new, both buildings are well maintained. Within the Tahuna Street property, there are some vacancies providing the opportunity to develop the investment profile and lease the building to full capacity,” he added. They can be purchased in one line or separately.

Generating a combined net passing income of $413,052 + GST per annum, the tenancies within the properties include:

• Local body Waimakariri District Council on two leases running through to 2025 with a further three-year right of renewal
• Gastro’ pub The Good Home on a lease running through to 2030 with a further

six-year right of renewal

• Telco’ operator Spark NZ on a lease running through to 2025 with a further

three-year right of renewal for its cell phone tower

• Food and beverage operator Flat White Café on a month-to-month lease
• Real Estate agency Ray White on a lease running through to 2024

and

• Three commercial occupants on rolling tenancies

As part of the rental income, the property’s owner is providing an unwrite of rental income for the three currently vacant units through to 2023 – allowing for new tenancies to be placed during the intervening period.

White said there was also the potential for investors and developers to purchase two bare land sites in the central Pegasus precinct. The first site at 58 Pegasus Main Street is an 847-square metre plot zoned business 1 under the Waimakariri District Council Plan, while the location at 64 Pegasus Main Street is a 1,030-square metre site zoned residential 6A under the council plan.

At the end of 2020 Pegasus benefited significantly from the opening of the $290 million Christchurch Northern Corridor roading infrastructure project which delivers quicker access to the North Canterbury region from Christchurch and has opened up the area for further residential development considerably

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