Wellington, 13 October 2014 – A well-established, fully-leased retail development in the heart of the Porirua Mega Centre has come up for sale for the first time in a decade.
Marketed on behalf of Argosy Property Limited by John Bedford and John McKenzie of CBRE, alongside Paul and Carl Hastings of Paul Hastings and Company Limited, the property at 2-10 Semple Street is for sale by Deadline Private Treaty, closing at 4pm on Wednesday 5 November unless sold prior. The sales process forms part of Argosy’s strategy to reduce retail exposure.
Developed in the early 2000s, the Porirua Mega Centre occupies 11,253 sqm of land and provides Gross Lettable Area of 6,539.8 sqm of retail space plus 107 car parking spaces.
John McKenzie says: “Holdings of this size are very seldom available in the area, particularly in this very active Mega Centre. This is the first time the property has been available, so it offers a great opportunity for private investors or family trusts to make the most of its considerable long-term potential. For this reason we have not been surprised by the attention it has already provoked.
“Porirua’s population is growing and the commercial property market in the Wellington region is picking up, so there are strong opportunities here to increase the rentals over time through CPI growth. In addition, the centre offers scope to add real value through creating strata titles, which would de-risk the opportunity and provide future options for owner occupiers, thus creating a potential exit strategy.”
Carl Hastings says that the property is ideally located at the entrance to the Porirua Mega Centre. “This means it has excellent profile not only through its dual street access but also because of this prominent position at the Western gateway into the Mega Centre.”
Fully-leased, the medium-to-large format retail centre’s seven tenancies contribute passing income of $1,273,722.68 per annum. The strong covenant mix comprises well-known brands that include Rebel Sport, NZ Post, Godfreys and Denny’s.
“This strong mix of brands is trading well here,” says Hastings. “It is a recognised destination for shoppers all over the region. I would also say that the centre is considerably under-let, offering good prospect of long term future rental growth.”
He adds that Porirua, soon to have been a city for 50 years, has been a big winner in recent years as residential development has been focused towards the north west of Wellington under Porirua City Council's northern growth area project.
“Last year's census revealed Porirua was now New Zealand's 10th biggest city. This could change in the not-too-distant future as major new developments are springing up in multiple locations around Porirua, including Whitby, Paremata, Aotea, Churton Park and Lincolnshire Park. At this time of a big residential development push, existing retail centres such as the Porirua Mega Centre have a lot to gain. This is particularly of note given that the private rural land between Plimmerton and Pukerua Bay could be the site of further huge urban growth over the next 30 years."
About CBRE
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
