$350m-plus hoped for as malls go on the market

Three prominent retail properties are on the market in a deal which could exceed $350 million.

Dress Smart discount factory outlet malls in Auckland and Christchurch and Dunedin’s prominent Meridian Mall are being sold by Lendlease Real Estate Partners New Zealand.

The portfolio includes outlet centres Dress Smart Onehunga, Auckland, and Dress Smart Hornby, Christchurch, together with Meridian Mall, in the centre of Dunedin’s CBD.

Colliers International and CBRE are managing the sales campaign.

In 2011, the Lendlease Real Estate Partners New Zealand Fund bought the shopping centres and a mall in Wellington — previously owned by ING Retail Property Fund — for a reported $197m.

Lendlease fund manager Matt Bowyer said: “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.

“We expect the portfolio will be strongly sought after by domestic and international parties given the assets’ strong fundamentals and long-term financial performance.”

Colliers’ John Goddard said the strength of the Dress Smart brand had resulted in the Onehunga centre being an outstanding performer.

“The portfolio provides immediate scale with an overall gross lettable area of 36,362.4sq m. The total portfolio is expected to attract interest in excess of $350m,” Goddard said. “This is a unique opportunity to dominate the outlet market in New Zealand while investing in the best shopping centre in the lower half of the South Island.”