Bayleys makes $100m in retail sales
Retail
Bayleys has sold five retail properties to a mix of New Zealand and Singaporean investors at a total value of almost $100 million.
Two of the sales, totalling
$66.45m and settled during the coronavirus lockdown, were Auckland shopping centres anchored by Countdown supermarkets.
Ryan Johnson, Bayleys national director for commercial, said while some parts of the retail property market have taken a hit from the impact of Covid-19, others with occupants such as grocery businesses, supermarket-anchored shopping centres and pharmacies continue to attract a good level of interest.
‘‘Buyers are distinguishing between discretionary and nondiscretionary retail business tenancies,’’ Johnson said.
The Kelston Mall, sold on behalf of PMG Funds for $43.4m, was bought by a private investor from Singapore.
The 7741-square-metre centre in Glen Eden has 98 per cent occupancy, with 23 tenants.
‘‘Kelston Mall has a good mix with other major tenants in addition to Countdown including a pharmacy and medical centre, a childcare centre and Mobil service station,’’ Johnson said. ‘‘It also has a McDonald’s.’’
The other neighbourhood shopping mall transaction involved the Meadowlands Shopping Plaza in Howick, which sold to a private
New Zealand investor for
$23.05m.
The 1.9ha site has 5215sqm of retail space and 303 car parks, and was built in 1993 and had a major renovation in 2011.
It has a 96.85 per cent occupancy
and a lease to anchor tenant Countdown running until 2026.
Bayleys Auckland broker Cameron Melhuish said the supermarket is among a number of founding tenants still in occupation.
He said an added attraction was the under-utilised site’s local centre zoning, which provides future development options, allowing for buildings up to four storeys with residential on upper floors.
Also selling to a Singapore based investor for $13.2m were two retail offerings in the Auckland CBD’s Wynyard Quarter developed and owned by Willis Bond & Co.
Both were multi-tenanted, unit titled commercial premises on the ground floor of new luxury apartment buildings in the mixed use waterfront precinct.
‘‘The buyer was an existing contact on Bayleys’ South East Asian client database attracted by the quality of development in the Wynyard Quarter and who foresees it becoming an increasingly sought after location as the CBD continues to expand along the western waterfront area,’’ Johnson said.
Another Countdown anchored property in Tauranga sold for $20m to Silverfin Capital.
Located in the Fraser Cove shopping centre, the 5977sqm retail premises are predominantly occupied by the Countdown supermarket, on a lease until 2028, with other smaller tenancies.