Lendlease funds in $300m retail offload in NZ
The sale will be one of the largest tests of the DFO market as pandemic lifts and borders re-open.
Lendlease is capitalising on strong demand for outlet centres with the offer of two of New Zealand’s top assets – Onehunga in Auckland and Dress Smart Hornby in Christchurch – which are expected to sell for more than $300m.
The centres, offered by Lendlease’s funds unit, were almost sold before the pandemic struck.
Their resilient trading is expected to again lure buyers.
NZ funds manager Oyster, which was in pole position to buy the portfolio of factory outlet centres, is again expected to be in the hunt, along with the listed Vicinity Centres.
CBRE’s Simon Rooney and Colliers’ Lachlan MacGillivray and Richard Kirke are handling the Dress Smart assets, which will also draw Australian interest.
The private Adelaide-based DiMauro Group has been one of the keenest for NZ, and last November snapped up a major Christchurch regional shopping mall, The Palms, for $85m. The 34,400sq m shopping centre was sold by the AMP Capital Shopping Centre Fund. Vicinity remains keen to expand in the outlet sector and last year struck a deal to buy a 50 per cent stake in Gold Coast’s Harbour Town outlet shopping centre for $358m.
“We expect significant interest domestically, from the Australian investment community and from a broad cross-section of offshore investors, underpinned by the globally attractive initial yield, low acquisition costs and high-quality income and capital growth profile, coupled with the fact that the properties are situated in the key Auckland and Christchurch markets,” Mr Rooney said.
Lendlease investment management, managing director Scott Mosely said both centres had been strong performers with high quality income growth, adding that both centres offered future growth opportunities.
Dress Smart Onehunga is the largest outlet centre in NZ, comprising a 13,293sq m complex on a site spanning 22,939sq m.
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