On the market for the first time in 28 years, Karori Mall is fully occupied and anchored by Countdown and New World supermarkets. Other tenancies include Bank of New Zealand, Westpac Bank, Flight Centre and Unichem Pharmacy.
Matthew St Amand, Managing Director of CBRE Wellington, says Karori Mall represents an exciting investment opportunity.
“There is currently no other competing land within the Karori catchment suitably zoned to accommodate another retail centre of this scale. This provides the incumbent tenants a captive market - the likely reason why both supermarkets have been in occupation for over 40 years.”
Bill Leckie, Senior Director at CBRE Wellington, agrees saying that the diversified income stream and strong convenant from the two anchor tenants further adds to this property’s appeal.
“Karori Mall is 100% occupied and offers potential investors a stable and diversified income stream with forecasted future rental growth.”
The complex comprises a medium-sized suburban shopping mall with two supermarkets, 17 specialty shops and four office tenancies. It has a gross floor area of approximately 5,715sqm, providing a net lettable area of 4,974.5sqm
There are numerous pedestrian entry points into the mall together with direct access into some of the tenancies from road frontages. There is a combination of uncovered and basement car parking, offering approximately 91 on-site car parks. This, together with good street parking, provides ample parking for mall customers.
Seismic upgrade works have been completed recently with the mall now meeting 100% of New Building Standard.
Rick Stace, Associate Director at CBRE Wellington says there are significant add-value opportunities associated with the property.
“Further refurbishment and development of the mall will provide continued income growth. There is also the possibility of potential future redevelopment of the property to a single dominant supermarket operator.”
The OCR at an historic low coupled with access to affordable capital is generating more interest from investors in the New Zealand market. This has been particularly evident in Wellington over the past 12-18 months with an increase in liquidity and buyer interest.
St Amand says, “We encourage motivated purchasers to get in touch without delay – this property will attract a high level of interest from both domestic and overseas investors, so contact the agents now.”
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