An attractive return forecast for Centuria’s latest offer

A new opportunity to invest with Centuria is open to everyone in New Zealand. Offering an attractive 9% p.a. forecast pre-tax cash distribution for the financial periods ending 31 March 2027, 2028 & 2029¹, paid monthly, there’s also the potential for capital growth. Investment begins at $25,000 with a 5-year investment term.²

Centuria NZ is an established and experienced fund manager with significant property market expertise, a strong track record and thousands of investors. Part of ASX200 listed Centuria Capital Group, the Group has over $20 billion³ of Trans-Tasman assets under management including commercial, industrial, office, retail, healthcare, agricultural and self-storage properties.

Centuria NZ is offering investors the opportunity to share in the ownership of Meridian Mall, Dunedin’s main enclosed shopping centre, occupying a prime position within the city’s core retail precinct which recently benefited from the Dunedin City Council’s $50 million streetscape upgrade, significantly enhancing the area directly outside the property.

Providing 13,500sqm of gross lettable area across three levels, the property benefits from high levels of pedestrian traffic and is home to a wide range of retailers, with large format occupiers including JB Hi-Fi, Chemist Warehouse, Kathmandu and Toyworld. Other national and international tenants include Cotton On, Sunglass Hut, Michael Hill Jeweller, Merchant 1948, Peter Alexander and Strandbags.

The food and beverage offering includes well known chains such as Burger King, Coffee Club and Tank Juice, with a large food court operating from the lower level. Two onsite fitness centres complement the offering with Les Mills providing a premium state-of-the-art facility whilst CityFitness, which opened in June 2026, caters to a broader demographic delivering an accessible, value-driven option. There is also a medical centre on the top floor.

Centuria NZ chief executive Mark Francis says the investment combines an established CBD location with diversified income.

“Dunedin is one of the few cities in New Zealand where the core characteristics of the CBD have been retained, and it remains the pre-eminent shopping destination. The city’s blended retail property vacancy rate also generally sits lower than other major centres and the region has the joint-lowest unemployment rate in the country.”

“In terms of diversification, there’s over 50 tenants and no single tenant contributes more than 8.2 percent of total income, meaning low reliance on any one income stream. Around 90 percent of current base rent is subject to further fixed, CPI-linked, or stepped rental growth, which is positive for future income growth.”

Francis adds that with the combination of these property attributes and the attractive 9% p.a. forecast pre-tax cash distribution for the financial periods ending 31 March 2027, 2028 & 2029¹, potential for capital growth, and five-year investment term², all with a minimum investment of $25,000, they expect strong interest in the offering.

Bayleys Real Estate are Centuria NZ’s sole selling agents. Bayleys’ Head of Funds and Investment Products, Mike Houlker, says that the purchase price of the property is $89 million.

“This reflects a significant discount to the Property’s estimated replacement cost for insurance purposes, which excludes land costs, of approximately $193 million. This substantial differential suggests there are significant barriers to entry for any new competing comparable shopping centre in the future”

Bayleys’ Funds and Investment Products Manager Samara Phillips says the South Island economy is generally outperforming the North Island and the Meridian Mall’s location within Dunedin, the South Island’s second-largest city, with a metropolitan population of approximately 131,000, is a further benefit.

“Meridian Mall benefits from its close proximity to the University of Otago, with approximately 19,000 students and 4,000 staff, and the new Dunedin Hospital.”

“The $1.9 billion new Dunedin Hospital project, described as the largest health infrastructure investment ever undertaken in New Zealand, is approximately 500 metres from the property and is expected to contribute $429 million to Dunedin’s economy.”

Phillips adds that consumer retail spend is improving and the retail property market is seeing a boost in activity.

“Electronic card transactions for key consumer purchases have shown growth, rising from $61 billion in 2019 to $75 billion in 2025 – growth of 23%, and core retail sales volumes (which strips out the volatile fuel component) have now risen for 7 quarters in a row, after contracting through most of 2023 and 2024.”

“In recent years the New Zealand retail property market has seen a boost in activity from investors seeking shopping centre assets and this is reflected in global sentiment.”

 

Further information, including the Product Disclosure Statement and details of nationwide presentations, is available from Bayleys (0800 BAYLEYS) or by visiting centuria.co.nz/meridian.

 

1. Details of how the forecast pre-tax cash distribution is calculated and the risks associated with this investment are set out in the Product Disclosure Statement. Cash distributions are not guaranteed. Actual distribution rates may vary.

2. There is a risk that investors do not receive back some or all of their investment at the end of the investment term and returns are not guaranteed. Details of the circumstances in which investors may agree to extend the investment term, the manner in which liquidity will be offered to investors at the end of the investment term and the risks associated with this investment are set out in the Product Disclosure Statement.

3. Assets under management as at 30 June 2026. Includes assets contracted to be settled, cash and other assets.

Centuria Funds Management (NZ) Limited is the issuer of the stapled units to be issued under the offer to which this advertisement relates. A Product Disclosure Statement for the offer, which sets out the terms and conditions of the offer, is available, and can be obtained by contacting the Bayleys Real Estate agents listed in this advertisement. Nothing in this advertisement constitutes an invitation to subscribe for, or an offer of units or financial products to any person, in any country in which it would be unlawful to do so. Terms used in this advertisement have the same meaning as defined in the Product Disclosure Statement, unless the context suggests otherwise. Prospective investors are recommended to seek professional advice from a financial advice provider which takes into account their personal circumstances before making an investment decision. The selling agents are not providing personalised advice. Important information about the financial advice service provided by Bayleys Real Estate Limited is available at bayleys.co.nz/funds.