Shopping centre in rapidly growing town enters market

Shopping centre in rapidly growing town enters market

A ‘last stop’ shopping centre with the only supermarket along a 160km stretch of State Highway 1 in one of the South Island’s fastest-growing towns has entered the market.

The 27,000sqm Brackenfields Shopping Centre in Amberley includes a 3,564sqm Countdown supermarket, which saw 23% revenue growth over the past four years.

According to Stats NZ data, the population of Amberley in North Canterbury’s Hurunui District increased by 58% over 12 years and last year issued a record number of consents for new houses.[1]

A further surge in growth is expected in the coming months as eight new residential subdivisions and a $200m retirement village are completed – offering housing for hundreds of residents.

Commercial real estate investment firm Erskine Owen has launched a new property syndicate to purchase the $15 million retail development in November of this year.

Over the past eight years, Erskine Owen has facilitated investments in $150m of residential, commercial and industrial properties, including the $29.1m Heinz Watties distribution centre in Hawke’s Bay.

The Brackenfields Property Syndicate will mark the company’s first entry into the retail market.

Simon Paris, Erskine Owen’s GM of Investor Relations, says supermarket-anchored developments of this nature do not enter the market often and they anticipate strong wholesale investor interest.

He says the commercial retail hub generates approximately $1,377,311 net income per annum across 16 tenancies.

“Pressure on Christchurch’s housing stock is contributing to significant growth in townships like Amberley – which has seen a 118% increase in property values over the past decade.

“The eight subdivisions which have been consented for the area each offer housing for up to 700 residents. Based on this, the population of this centre is set to grow significantly in the short term.

“The influx of new residents is also expected to boost traffic to the shopping centre with the nearest competing supermarkets in Kaikoura, 135km to the north and Woodend, 25km to the south – creating a significant geographic advantage for the Brackenfields retail hub,” he says.

Paris says Countdown Amberley is one of the fastest growing in the country and has five years remaining on the current lease term with a final lease expiry in 2049.

He says the three-building shopping precinct was built in 2014 to 100% of NBS and has a lettable area of 5,790sqm.

“Brackenfields is a neighbourhood shopping centre which sees 11,000 vehicle movements per day – primarily upper South Island traffic on State Highway 1.

“The site also has an undeveloped, 1,000sqm adjacent area which presents further opportunities for retail expansion of the hub.

“In addition to the supermarket, the centre is supported by 15 speciality tenancies including a pharmacy, bakery and cafe, fish & chip shop and an ATM,” he says.

Paris says the Brackenfields Property Syndicate offers wholesale investors with a minimum investment of $100,000 a projected 8% cash return – and is now open for subscription.

[1] Stats NZ – 30% growth between 2006 – 2018 Census.

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