An entire neighbourhood retail centre in Blenheim, which includes a Woolworths supermarket, medical centre, retail and food & beverage tenants, is up for sale via CBRE.
The Springlands Shopping Centre, at 105-113 and 131 Middle Renwick Road, is spread across six separate titles and offers flexible options to suit a wide range of buyers.
CBRE Christchurch managing director Tim Rookes, who is marketing the property for sale by expressions of interest with CBRE associate director Cameron Darby, said the asset is offered at a time when buyer interest in regional investment opportunities is growing.
“We are seeing a rise in investor capital looking to the regions in search of value-add opportunities and strong investment fundamentals in the current inflationary environment.
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"As a result, quality retail centres like this are increasingly in demand.”
Various scenarios are available for both long term investors and developers looking to add value, said Darby.
“The centre could be acquired as a single investment holding with income from five separate tenants, or alternatively, the individual titles could be purchased separately as smaller investments.
"There could also be potential scope for a full site redevelopment and change of use, with a few options being large format retail, residential or aged care.”
A portion of the property is undeveloped and used for car parking, offering additional potential to generate further income and capital value from the 21,552 sqm land holding, said Rookes.
“The opportunity to develop additional land on the site offers the possibility to add significant value in the future through expanding the centre’s existing retail, health and food & beverage offering.”
Purchased as a whole, the property represents a significant retail holding in a prime regional location, with a split-risk income profile and good exposure to the non-discretionary grocery and medical sectors, he said.
“This is an excellent opportunity to secure a well-diversified retail property asset, with 72% of the total income coming from tenants operating in non-discretionary sectors.
"Paired with the growing local residential catchment and location on an arterial road, this asset is likely to fit the criteria of many local and national individual investors, family trusts and syndicates.”
Anchor tenant Woolworths New Zealand has operated on the site for many years and provides 54% of the total net rental.
Woolworths New Zealand operates around 185 supermarkets in New Zealand and employs 20,000 people. Part of the ASX-listed Woolworths Group, it is the country’s largest private sector employer and offers an exceptional tenant covenant, Darby said.
“Non-discretionary retail tenants are always in favour among property investors and this is especially the case in the current economic environment, where household spending is under pressure.
"Investors evaluating this asset will take a high degree of confidence from a tenant that is owned by Woolworths Group, Australia’s largest supermarket chain, with sales in excess of AUS$64 billion for the 2023 financial year.”
Springlands Health offers a full range of medical services to the local community, including general practice, sports medicine, international student health services, vaccination and acupuncture. The company also operates a second medical centre at Havelock.
Alongside the supermarket, medical centre and Speight’s Ale House, the property is home to several complementary occupiers including Unichem Pharmacy and a cafe.
The centre occupies a high profile position with a 200-metre frontage to State Highway 6 in north-west Blenheim, a key route used by traffic heading to and from Nelson and the Tasman district.
It is located close to the Westwood Business Park, which is home to large retail occupiers including Bunnings and Kmart. Marlborough Airport is 6km west of the property.
- Supplied by CBRE
