Westgate shopping centre for sale
The Westgate Lifestyle Shopping Centre in the heart of north-west Auckland, one of New Zealand’s fastest growing residential areas, is up for sale. Currently owned by New Zealand’s largest diversified property company, Kiwi Property Group, and located directly opposite the country’s first Costco store, the large format retail centre provides about
25,754sqm of lettable area on a prime
5.1ha site, with 622 parking spaces. The Westgate Lifestyle Shopping Centre is being marketed exclusively through joint agents Bruce Whillans, managing director of Whillans Realty Group, and Richard Kirke, international sales director of capital markets at Colliers, with expressions of interest closing on November 17.
Home to 28 stores, including some of Australasia’s best-known brands, Westgate Lifestyle is anchored by five major retailers, including Harvey Norman, Freedom Furniture, Hunter Furniture, Briscoes, and Rebel Sport. The tenancy mix includes Warehouse Stationery, Bed Bath & Beyond, Bedpost, Flex Fitness, Godfreys, Kitchen Things, Lighting Direct and Nood, and produces a net annual rental income of about $6 million.
Whillans says: “Westgate Lifestyle Shopping Centre is currently fully occupied, and the majority of the rental stream incorporates fixed or CPI rental reviews, giving it guaranteed rental growth. Alongside industrial, large format retail has been one of the most resilient asset classes through the Covid-19 pandemic.
“Rental growth in the sector has been supported by extremely low vacancy, currently sitting at less than 1 per cent, with high occupier demand and rapidly rising construction costs limiting new supply.”
Kirke adds: “In addition to its attractive income profile and exposure to some of Australasia’s most well-known retail brands, the centre is underpinned by its significant land value. The recent opening of Costco is a major vote of confidence for Westgate ... as Costco is a drawcard destination, driving traffic and retail spend in the rest of the Westgate retail precinct.”