Karori Mall, located at 236-256 Karori Road, Wellington has been sold by Matthew St Amand, Bill Leckie and Rick Stace of CBRE, after receiving over $200 million worth of offers. This was the first time Karori Mall had been on the market in 28 years.
The fully occupied mall anchored by Countdown and New World supermarkets was marketed on behalf of Nigriv Investments Limited, and is understood to have sold for circa $22 million.
Matthew St Amand, Managing Director of CBRE Wellington, says, ”This was an excellent result. The purchase price represented an extremely low yield for a Wellington suburban retail asset.”
The complex comprises a medium-sized suburban shopping mall with the 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.
Bill Leckie, Senior Director at CBRE Wellington, notes, “As we initially anticipated, the diversified income stream and strong covenant from the two anchor tenants added to this property’s appeal for the new owner.”
Rick Stace, Associate Director at CBRE Wellington adds mention of the mall’s high profile and unique location. “The affluent suburb of Karori is Wellington’s largest and most established with a population of over 15,000 people. The suburb’s commercial hub is centred around Karori Mall.”
There is currently no other competing land within the Karori catchment suitably zoned to accommodate another retail centre of this scale which means Karori Mall provides the incumbent tenants a captive market. This is the likely reason why both supermarkets have been in occupation for over 40 years.
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