Dress Smart up for sale

Dress Smart Hornby is one of three malls for sale.
Dress Smart Hornby is one of three malls for sale.
Three prominent retail properties across New Zealand, including Hornby's Dress Smart, are up for sale in a deal which could exceed $350 million.

Dress Smart discount retail factory outlet malls in Auckland and Christchurch and Dunedin's prominent Meridian Mall on George St in the CBD are for sale.

Lendlease Real Estate Partners New Zealand is pitching the property assets of its portfolio in those three cities.

The portfolio includes outlet centres Dress Smart Onehunga, Auckland, and Dress Smart Hornby, Christchurch, together with Meridian Mall, a retail asset 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 four shopping centres for a reported $197 million.

ING Retail Property Fund had previously owned the assets.

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."