With evidence that institutional, syndication and global capital is edging back into circulation for commercial and industrial property, Bayleys Canterbury has made a strategic new appointment to further bolster its capital markets and corporate leasing team.

Seasoned commercial agent Jesse Paenga has joined Bayleys in its Christchurch office and will work closely with William Wallace, Bayleys’ general manager commercial South Island, and Bayleys’ national capital markets and corporate leasing teams, headquartered in Auckland.

Paenga’s track record includes brokering Christchurch's largest-ever office transaction valued at $77 million, negotiating leases for major CBD occupiers including Hoyts and H&M, and facilitating commercial sales in the city exceeding $300 million in total value.

Wallace said securing Paenga’s skillsets, drive and business acumen for its capital markets and corporate leasing team will benefit clients and give additional international profile to Canterbury and other South Island centres by further leveraging relationships with Bayleys’ global real estate partner, Knight Frank.

“Jesse brings a wealth of industry intelligence fine-tuned over the last decade at a time when Canterbury has effectively reinvented itself as a world-class business-driven city,” said Wallace.

“His strong transactional reputation and capacity to build solid and trusted working relationships with a broad client base will be an incredible asset to our team here in Christchurch, to our South Island network and the wider Bayleys national team.”

With signs that the commercial and industrial property market is undergoing a gear change in readiness for the next real estate cycle, Wallace said Paenga’s appointment shores up the South Island’s capital markets and corporate leasing offering.

“Client relationships are at the core of all real estate dealings and Bayleys’ capital markets’ connections run deep and wide into a global pool of active capital and to the heart of corporate decision-making.

“Christchurch is a brand new city and is light years ahead of other main centres because of its deliberately planned infrastructure, quality commercial precincts, seismic integrity and world-class design.

“Corporate entities are being attracted here because of the cost benefits, the ease of doing business. the lifestyle comparative affordability of housing that Canterbury can offer to entice and retain staff, and the growth opportunities that are clearly waiting to be tapped.”

Wallace said Canterbury and Otago will be the invigorated capital markets team’s immediate focus, with Southland very much on the opportunity radar, too.

“Arguably, these areas are undervalued – particularly in global terms. Factor in the major ports of Lyttleton, Timaru and Dunedin, the infrastructural improvements either completed, underway or forward-planned, and the relative affordability and there’s scope for monumental growth

“Demand for industrial property is already escalating in Dunedin and Christchurch, land is tight but hotly-contested in Queenstown, and the likes of Mosgiel and Cromwell are well-poised for growth given their peripheral location to major catchments.”

Bayleys’ premium position in the nationwide commercial and industrial market, and its strong global links with one of the world’s leading real estate consultancy firms, Knight Frank, was appealing to Paenga who is passionate about the industry and Christchurch’s position in the country’s property landscape.

“Post-rebuild, Christchurch is now the most modern and seismically-resilient CBD in Australasia.

“With the anchor projects mostly completed, the covered stadium well underway, and the CBD’s hospitality precincts humming, the city has become very attractive for locals and tourists and is a magnet for investment.

“World-class office space that is competitively priced against other major centres and high-quality and affordable housing underpins further growth for Christchurch.

“Investors, developers and occupiers are drawn to the city and as construction costs stabilise and the cost of capital settles at a more-acceptable level, its well-positioned for when the market resets.”

Paenga said opportunistic and well-capitalised investors have been able to take advantage of a smaller buyer pool while the cost of debt has been high and the lending environment tougher, but said that window could start to close as 2024 advances.

“There is also the opportunity for investors to acquire key land parcels and position themselves for when new development fundamentals realign, and construction kicks off again.

“Additionally, there’s the chance for owners of quality regional property to take advantage of private investors, syndicates and funds looking to the regions for better returns while the cost of debt remains elevated.”