Whillans Realty Group’s Jeremy Sim, Investment Sales and Bruce Whillans, Managing Director, have been appointed to sell the landmark Colombo Shopping Centre in Christchurch, New Zealand by tender closing 2nd June at 4pm (NZST).

Mr Jeremy Sim said the property will generate significant interest from buyers both locally and offshore and is being offered for sale as a solid investment with additional potential to value-add.

He said investors are diverting capital back into shopping centres, attracted by the superior comparative returns these centres offer relative to other commercial asset classes.

Mr Sim said the property has exceptional retail fundamentals and compared to many offshore markets, New Zealand itself offered excellent tax efficiency with no stamp duty, land tax or capital gains tax charged to landholders.

“Anchored by Smiths City who has a 12-year tenancy and occupies 22% of the building, the Colombo Shopping Centre is currently 97 per cent occupied and has a weighted average lease expiry of 3.8 years.

“The property generates approximately NZD $2.25 million in net passing income with the potential to return NZD $2.44 million on a fully leased basis.

“The majority of speciality retailers have two-yearly rent reviews based on the greater of market or CPI, providing built-in rental growth,” he added.

Completed in 1984, the property has been managed by the owner since 2010. It has benefitted from an ongoing refurbishment program and holds a B-Grade seismic rating.

According to Mr Sim, the property is situated on a large 1.65 hectare freehold site and has multiple egress points with 278 on-grade car parking spaces. The centre itself has a floor area of 8,063 square metres with specialty tenants including BNZ Bank, Frontrunner Shoes, NZ Post and Art Cinemas.

“The centre is located on a key arterial thoroughfare that connects Christchurch CBD with some of the city’s most affluent residential neighbourhoods with about 16,000 cars passing the property on a daily basis.

The property holds a prominent position on Colombo Street. It is located 60 metres from the intersection of Colombo Street and State Highway 76. The centre is surrounded by a mix of commercial, industrial and retail buildings.

The immediate area is also undergoing residential intensification. In 2018, Fletcher Living developed 76 townhouses directly opposite the centre at 250 Colombo Street. And in 2015, an 80 bed aged care facility opened at Nazareth House 250 metres south west of the centre.

Mr Sim said longer-term, the opportunity exists to extend the centre, develop multi-level car parking or introduce a mix of residential housing on the site.

“The vendor has also prepared indicative concept plans that show how the centre could potentially accommodate a mix of one, two and three bedroom apartments,” he said.

To request a copy of the Information Memorandum please contact one of the marketing agents from Whillans Realty Group’s Jeremy Sim and Bruce Whillans via the contact details below. 

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