Large Christchurch retail centre up for sale

Photo: Bayleys.co.nz
Photo: Bayleys.co.nz
Christchurch's Dress Smart Hornby centre is on the market with a deadline of August 14 unless sold prior.

The 7125sq m centre at 411 Main South Rd (State Highway 1) houses a mix of 45 national and international brands, including Calvin Klein, Tommy Hilfiger, Adidas, Puma, Icebreaker, Mons Royale, Hallensteins, Bendon and Bonds.

Ryan Johnson, William Wallace, and Jesse Paenga from Bayleys are handling the sale.

The property, which has 327 car parks, has undergone several refurbishments over the years.

The upgrade work currently under way includes seismic strengthening, stage one of a roof sheet replacement, and waterproofing of the car park membranes.

As of December last year, the centre had recorded annual sales of $56.3 million. It has a vacancy rate of 2.9%.

The management of the centre is currently outsourced, but the property will be sold free of any existing management agreements.

Dress Smart Hornby. Photo: Bayleys
Dress Smart Hornby. Photo: Bayleys
Bayleys national director commercial Ryan Johnson said Dress Smart Hornby is a proven asset with the potential for growth.

"Globally, the outlet sector is in growth mode, underscored by consumer demand for well-priced branded goods, and reflected in New Zealand with a further three dedicated outlet centres across the North Island,” Johnson said.

"As the retail property sector has re-rated faster than other segments of the commercial market, retail assets offer good value for investors.

"With the cost of debt now sitting at circa-five percent, retail property with scale is looking very attractive to well-resourced investment partnerships and syndicators seeking robust returns and long-term capital growth.

"Thanks to a diversified and well-curated tenant mix, the centre’s financial performance has held up through fluctuating market cycles when other parts of the retail landscape have faltered."

Said William Wallace, Bayleys general manager South Island commercial and industrial: "Christchurch’s economy has outperformed many other parts of the country, and investors are recognising the long-run fundamentals of commercial property within New Zealand’s most modern urban centre.

"The city's affordability, lifestyle appeal and economic resilience are attracting families and professionals, and Dress Smart’s trade area population is expected to increase by more than 120,000 people by 2046.

"The region is seeing major urban expansion and infrastructure investment, so this proven retail asset is uniquely positioned to provide long-term value to investors looking for exposure to a stable and increasing retail sector," Wallace said.