Property firm selling out of New Zealand retail portfolio
Lendlease Real Estate is looking to sell its New Zealand retail portfolio, expecting $350 million for the combined offer.
The portfolio is being offered as a one-line purchase, and includes outlet centres Dress Smart Onehunga, Auckland and Dress Smart Horby, Christchurch, as well as Meridian Mall, Dunedin.
“These properties have performed well for our investors, but the fund was created to run for a fixed term and that has triggered the sale process,” said Lendlease fund manager Matt Bowyer.
Colliers International and CBRE are managing international expressions of interest for the portfolio.
“We expect the portfolio will be strongly sought after by domestic and international parties given the assets’ strong fundamentals, long-term financial performance and strategic locations in each city,” Colliers head of retail investment services Lachlan MacGillivray said.
“Outlet centres have successfully closed the gap between full price retail and highly disruptive internet sales as they provide a level of investment diversification from traditional shopping centres.”
CBRE head of retail investments Simon Rooney, each centre in the portfolio will benefit from low acquisition cost and the growth opportunities afforded by each city’s demographics.
“While Christchurch and Auckland are well known investment destinations, the Dunedin asset will also be highly-sought after due to the initial yield, CBD location and the council’s significant infrastructure investment in healthcare and education,” Rooney said.
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