Buyers can add to flagship site’s century-long legacy
The prime central Christchurch site that gave birth to a top New Zealand retail chain over a century ago, and is still home to one of its leading stores, has gone up for sale.
The more than 1.3ha Colombo St property was the location of the flagship store for Smiths City when the chain was founded by Henry Cooper Smith in 1918.
Still headquartered on the Christchurch site, it has grown into a household name as one of the country’s leading retailers, supplying home appliances, furniture, electronics and other household items from 20 stores nationwide.
Smiths City has also branched into insurance and finance products such as personal loans and credit cards.
Previously listed on the New Zealand Stock Exchange, it was acquired by private equity firm Polar Capital during the height of Covid-19 and has undergone significant rebranding and restructure to position it for future success.
The site housing Smiths City’s Colombo St store will provide a new owner with an annual net rental income of $1.6 million plus all outgoings and GST on a new 10-year lease, with two further six-year rights of renewal.
The lease agreement will lock in fixed annual rent increases of 2 per cent with a mid-term market rent review at year five.
Thanks to flexible, developmentintensive zoning, the large landholding for sale also offers significant future expansion and redevelopment possibilities and an array of potential future uses including a blend of residential and commercial.
The freehold land and buildings at 550 Colombo St are being offered for sale through Bayleys Canterbury. They will be sold by deadline private treaty closing on Thursday March 14, unless sold earlier.
Bayleys salesperson Ryan Kerr said the site contained five contiguous building structures with a combined net lettable area of close to 7000sq m.
These sit on more than 13,300sq m of freehold land across six titles, with 156 onsite carparks.
“Constructed between 1979 and 2014, the buildings have undergone multiple extensions and alterations since and are well-suited for a large-format retail tenant. There is also flexibility to further extend the premises or to reconfigure the buildings into smaller tenancies if required.
“The property has an IEP seismic rating of 100 per cent NBS.
“It enjoys prominent inner-city profile with extensive dual frontage to Colombo and Dundas streets, along with driveway access via Welles St,” Kerr said.
The site forms part of the Commercial Central City Mixed Use Zone under Christchurch’s district plan.
This provides for development for an array of possible activities, or combinations of activities – from the existing retail through to offices and commercial services, residential and visitor accommodation, healthcare and education facilities – up to a potential height of 21m.
The property sits within a 10-minute walk of the Christchurch Bus Interchange and Cathedral Square.
Bayleys’ South Island commercial and industrial general manager William Wallace said buyers stood to benefit greatly from this premium central-city location which placed the property in the heart of Christchurch’s ongoing urban renewal and repositioning as a world-class city.
“Positioned on a major urban arterial route, 550 Colombo St is conveniently located relative to the CBD and within a vibrant urban area with an abundance of projects and infrastructure initiatives under way.
“As a gateway destination to the South Island, Christchurch is a place of transformation where change and innovation have been embraced, creating a strong economy and vibrant place to live.
“The $40 billion post-earthquake rebuild continues at pace to deliver an attractive, modern, resilient and futureproofed city.
“The key Anchor Projects and Precincts have played a crucial role in this transformation, with world-class facilities such as Te Pae Christchurch Convention Centre, Metro Sports Facility, Tu¯ranga (Central Library) and the progressive redevelopment of Cathedral Square and the Canterbury Multi-use Arena drawing visitors from around the world,” Wallace said.