An exceptional opportunity to acquire a diversified, income-generating investment in the heart of Christchurch’s South Frame laneway precinct is now available, offering passive income with tangible upside, Bayleys brokers say.

The Yard, a refurbished character building at 173 St Asaph Street, is being marketed for sale by Jesse Paenga and William Wallace, of Bayleys Christchurch, presenting investors with a coveted foothold in one of the city’s fastest-evolving commercial zones.

The property is offered to the market by deadline, closing at 4:00 pm on Thursday, 22nd May 2025 (unless sold prior).

Comprising approximately 1,165sqm of lettable area on a 768sqm (more or less) freehold site, the property returns $455,942 plus GST and outgoings per annum, with built-in rental growth mechanisms.

A vendor underwrite over two vacant tenancies ensures uninterrupted income for the next three years, adding to the property’s secure investment profile.

Bayleys South Island Capital Markets director Jesse Paenga says The Yard’s features align perfectly with the current investor preference for assets providing stable cash-flow, mixed-use flexibility, and long-term value in central locations undergoing structural uplift.

“Christchurch’s central city has evolved rapidly over the last five years, with the South Frame precinct seeing strong commercial tenant demand thanks to its growing density, eclectic building stock, and walkable amenity.

“The Yard typifies this momentum. It blends industrial heritage and modern functionality, having been extensively refurbished and seismically strengthened to 100 percent of New Building Standard (NBS) in 2018. This kind of character offering, with strong bones and flexible lease structures, is increasingly difficult to replicate.”

The property is occupied by five tenants from the architectural, design, and hospitality sectors, with two vacant tenancies of 73 and 159sqm (more or less) underwritten by the vendor at market rates of $25,000 and $60,000, respectively.

Bayleys South Island commercial and industrial general manager William Wallace says this provides buyers with cash-flow certainty while retaining value-add potential.

“Tenants include Kiwi design agency Isthmus Group, local firm Three Sixty Architecture, gelato store Rollickin and quantity surveyor BBD, with leases structured to include annual CPI reviews, fixed growth provisions, and rights of renewal extending as far as 2037.

“This tenancy schedule gives investors a rare combination of income security and flexibility, with staggered expiries and proven tenant demand. “The Yard is low on risk and high on upside – in a location where the city’s energy is building.”

Positioned within the Central City Mixed Use zone, the property benefits from proximity to the creative SALT District, Christchurch Bus Interchange, and a range of food, retail and lifestyle amenities.

Wallace also notes the impact of the property’s current owners, South Island Office, who have played a significant role in preserving and revitalising Christchurch’s architectural heritage since the earthquakes in 2011.

“The sellers have a proud track record of breathing new life into historic and character buildings, including the Public Trust Building, The Welder, and the Café Roma Building, which was refurbished and subsequently sold in 2021.

“Their work has helped preserve the city’s history whilst diversifying the architectural landscape, contributing meaningfully to the CBD’s post-earthquake regeneration.”