An institutional-grade industrial investment anchored by a recognisable national tenant is being brought to market in one of Christchurch’s most resilient commercial precincts.

Bayleys Capital Markets South Island director Jesse Paenga is marketing the 8,750sqm (more or less) freehold property at 196 Roydvale Avenue for sale by deadline, closing at 4:00 pm on Friday, 4th July 2025 (unless sold prior), alongside colleagues William Wallace and Mike Houlker.

The asset comprises a substantial 1,990sqm facility and 150 car parks, prominently positioned on the corner of Roydvale Avenue and Lake Bryndwr Lane.

Paenga says that being fully occupied by leading health and wellness operator, CityFitness, the property presents an outstanding opportunity to acquire a securely leased, income-generating investment with long-term upside.

“A new 12 year lease term to CityFitness, which commenced at the start of May, underpins this offering, returning $663,173 net pa plus GST and outgoings.

“The lease features CPI-linked annual rental growth, plus market reviews every six years, with two further renewal rights taking final expiry out to 2049.”

Paenga says the strength of the tenant covenant, combined with the property’s strategic location and flexible zoning, puts it squarely in the sights of passive investors and those who want to add value in time.

“CityFitness is an internationally owned, nationally recognised operator with more than 40 locations across New Zealand. The tenant’s long-term commitment to this location reflects strong underlying demand in the health and wellness sector, which continues to show resilience.”

The building was purpose-built as a fitness centre under a dedicated resource consent, offering a compliant and operationally efficient space with high visibility and accessibility. It is the largest facility of its kind in the Burnside area, servicing a wide suburban catchment.

Bayleys South Island Commercial general manager William Wallace says that low site coverage enhances development flexibility and provides opportunity for future repositioning, while the site’s Industrial General zoning allows for various commercial or light industrial uses.

“This makes it well-suited to future adaptation in line with evolving tenant demand or market logistics.”

Wallace adds that Burnside is a highly sought-after location for commercial and industrial activities, given its proximity to key transport infrastructure, including Christchurch International Airport, State Highway 1, and key logistics routes.

“Burnside is a mature, mixed-use precinct that continues to attract a diverse range of occupiers from trade and logistics to large-scale service operators. The location’s connectivity and supportive zoning provide a strong foundation for long-term value retention.”

The brokers say Christchurch has emerged as a standout performer among New Zealand’s major metropolitan centres, bolstered by competitive yields, favourable land pricing, and renewed investor confidence.

“Institutional and private investors are increasingly drawn to attractive market fundamentals in Christchurch – new infrastructure, a growing population base, and a well-balanced economy.

“The subject property is ideally aligned with those trends; it offers income certainty, a strong tenant profile, and future flexibility in a high-demand location. It is a future-focused investment that aligns perfectly with the growing demand for asset certainty and strategic positioning.”