Christchurch shopping centre, The Palms, has been bought by Adelaide-based Di Mauro Group, joining the company’s existing portfolio of shopping malls on both sides of the Tasman.
The acquisition was valued at $88.8 million. Opening in 1997, The Palms is situated 4.5km northeast of the Christchurch CBD, housing a department store, discount department store, a supermarket, a cinema complex, three outdoor bars/restaurants, a gym, more than 98 speciality stores and a seated food court.
“New Zealand continues to gain traction as a retail investment destination, with offshore investors attracted by the country’s compelling investment fundamentals, including low retail supply per capita, ongoing strong population growth, robust retail turnover growth, low acquisition costs and an attractive yield profile,” said Simon Rooney, head of retail capital markets at JLL.
Di Mauro Group owns more than AU$1.4 billion in property assets across Australia and New Zealand, including the West City Shopping Centre in Auckland and the North City Shopping Centre in Wellington.
“Despite border closures and restrictions, investor interest in the New Zealand market remains high, with low interest rates enabling transactions to proceed,” Rooney added.
“In the case of The Palms, the asset’s expansive and well-established total trade area population of 151,461 and significant retail spending capacity of $1.87 billion, together with the centre’s strong growth profile, were key investor draw cards.”
