An Australian property giant is testing buyer appetite for retail post-Covid with the sell-off of two high profile shopping centres in New Zealand.
Dress Smart Onehunga, in Auckland, and Dress Smart Hornby, in Christchurch, are expected to fetch more than $300 million, according the agents charged with selling them.
Both retail outlets are famous for their low prices and are being sold Lendlease Real Estate Partners New Zealand, a subsidiary of Australian property firm Lendlease.
It is the second time the company has tried to offload the two retail centres. The Dress Smart portfolio first hit the market in late 2019, just before the Covid pandemic put the world into lockdown.
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Colliers agents Lachlan MacGillivray and Richard Kirke are marketing the centres for sale with CBRE broker Simon Rooney.
The portfolio is being sold by way of expressions of interest, closing March 24.
“Dress Smart Onehunga and Dress Smart Hornby are outlet centres trading under the ‘Dress-Smart’ banner – a well-known brand that has been part of New Zealand’s retail landscape for 24 years,” MacGillivray said. “Together, they offer a once-in-a-generation opportunity to immediately dominate the outlet market in New Zealand.”
Dress Smart in Hornby, Christchurch. Photo / Supplied
CBRE’s Rooney said they expected significant buyer interest from New Zealand and overseas.
“Both centres offer robust performance characteristics and have demonstrated trading resilience during downturns, more so than other retail sub-sectors, due to their discount-based offering.”
He added: "From a tenancy perspective, New Zealand is an increasingly sought after market with international and national retailers looking to expand their store footprints with a more targeted approach.”
Scott Mosely, managing director of Lendlease Investment Management, said: “Both centres have been strong performers for the fund with high quality income growth."
Lendlease bought the Dress Smart portfolio in 2010 for $185 million. The portfolio at the time also included the Dress Smart outlet in Tawa and Meridian Mall in Dunedin.
Dress Smart Onehunga opened in 1995 and is the largest outlet centre in New Zealand. It is home to 99 tenants, including Adidas, Puma, Nike, Converse, Coach, Tommy Hilfiger and Calvin Klein.
Dress Smart Hornby in Christchurch is the South Island’s only dedicated outlet centre.
