Christchurch retail, development sites
In Christchurch both population and retail sales activity are showing continued growth, having risen above pre-quake levels. CBRE agents Tim Rookes and Brent McGregor say the positive trend supports a decision by their vendor — the fund manager, AMP Capital — to place significant commercial real estate assets on the market for sale.
On behalf of AMP Capital, they’re now selling the large-format retail complex Northwood Supa Centa and its sizeable adjoining development site, the Styx Land.
The assets are for sale by a deadline private treaty process, closing 4pm October 18, unless sold earlier.
“This creates a significant opportunity to acquire a well-established retail centre with proven performance, along with a substantial adjoining development site to future-proof the investment,” says Rookes.
“The centre has a mix of established national and international brands with solid trading track records, and the neighbouring land has excellent mixed-use potential.
“We’re expecting strong national and international interest, particularly as large format retail centres are tightly held.”
Occupying a 7.35ha site at the corner of Radcliffe Rd and Main North Rd (a main arterial route to the north of Christchurch’s CBD), the Northwood Supa Centa has benefited from high profile commuter exposure, he says.
It is anchored by some of New Zealand’s most recognised retailers, including Harvey Norman, Countdown, The Warehouse, Noel Leeming and Smiths City, as well as 24 specialty tenants within the net lettable area of 33,062sq m.
With 94 per cent occupancy, the “Centa” generates an annual net passing income of $6,826,221 plus GST, with the opportunity to add value, particularly in the fast-growing food and beverage segment.
McGregor says Northwood Supa Centa has established itself as the dominant large format retail development to the north of the city.
“A strong trading history has attracted brands of national and international quality to the centre.”
Well-known automotive brands Repco, Beaurepaires, Midas and VTNZ also draw traffic to the centre and provide a one-stop-shop automotive customer experience, says McGregor.
He notes that the neighbouring 12.9ha of prime development Styx Land provides further opportunities to add value.
“The mix of Commercial Core and Residential New Neighbourhood zones means the potential exists for further retail development or even a reversion to residential and/or retirement village use, as the zoning provides for a wide range of residential home types and section sizes,” says McGregor.
Rookes says the first thing about the property that grabs attention is the 500m of road frontage and corner aspect on to Main North Rd, plus the presence of the adjacent dominant retail Supa Centa.
“People already know it as a destination.
“Potential development of complementary uses, including residential and retirement housing, creates opportunity to add-value to the existing retail offering,” he says.
“The Styx Land could accommodate any existing majors at Northwood Supa Centa — should they wish to expand — thus securing them in the immediate location.
“Additional retail space could be added in a manner that supports the existing retailers, creating greater critical mass for Northwood as a shopping destination. Interested parties could acquire the land as a standalone development opportunity, particularly given the mix of zoning, plus its excellent profile.
“It’s exciting to be able to market a site of this calibre.”
McGregor sees the centre as set to benefit from strong population growth, particularly in the allimportant nearby primary school catchment.
“Christchurch’s population has risen above pre-quake levels for the first time as the recovery gathers steam.
“Latest Statistics NZ estimates show that although construction activity is considered to have passed its peak and is no longer driving growth, it is being replaced instead by the underlying economy,” says McGregor.
“Retail sales activity in Canterbury has steadily grown since 2012, with the most recent growth levels outpacing New Zealand overall.”