A high-performing large-format retail investment in South Canterbury’s regional support centre, anchored by a long lease to one of New Zealand’s most recognisable local brands, is a strategic investment in a proven and enduring market segment, brokers say.
Bayleys Canterbury commercial, industrial and development sales and leasing broker, Jeremy Speight is marketing the property for sale by deadline, closing at 4:00 pm on Thursday, 17th April 2025 (unless sold prior), alongside colleague Jesse Paenga and Ben Cameron of JLL Christchurch.
Speight says that being positioned in the commercial heart of Timaru, the freehold landholding of 1.62ha (more or less) at 11 Victoria Street presents a rare and compelling opportunity to acquire a premium ‘big box’ retail investment in one of New Zealand’s thriving regional centres.
“This offering exemplifies the key attributes of the large-format retail sector, which has demonstrated resilience throughout dynamic market conditions while delivering stable returns and long-term opportunities for investors.
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The property generates a net annual income of $909,544 plus outgoings and GST from two tenancies, reflecting a Weighted Average Lease Term (WALT) of 7.6 years.
The Warehouse – one of New Zealand’s most established and recognisable retail brands – occupies the bulk of the property with nearly eight years remaining on an initial 10-year lease term. The lease provides for three renewal rights of five years each.
A popular café occupies a smaller tenancy of 180sqm (more or less) with a three-year lease and three renewal rights of three years each.
Bayleys South Island and capital markets director Jesse Paenga says that the Warehouse has been a cornerstone to New Zealand’s retail landscape for decades, with a vast national footprint and a track record of adapting to changing consumer needs.
“The asset’s scale is equally impressive, with a total floor area of 6,656sqm (more or less) on a substantial parcel of land, held in 11 titles. This scope alone provides options for future development potential.”
Accessible via State Highway 1 and surrounded by national retailers, including Woolworths, Farmlands, and Repco, the property is located 400m from the CBD – now a key economic hub for South Canterbury. Fuelled by a strong primary sector, a diverse business landscape, and a growing population, the area offers a solid foundation for growth.
JLL Christchurch head of agency Ben Cameron says that large-format retail has proven popular with New Zealand-based investors, given that assets are underpinned by strong national brands and long lease structures, often positioned in strategic locations chosen to support evolving consumer habits.
“The sector has demonstrated sustained performance throughout various economic cycles, with well-located sites, evidenced by the subject property, maintaining strong occupancy and investor appeal.
“A powerhouse mix of everyday essential goods, destination retail and online integration has cemented this asset’s resilience – underscoring the way that large-format retail has become an enduring and desirable market segment for investors chasing secure, long-term gains.
“This is regional retail at its best – rock-solid tenancy, built-in growth potential, and a prime spot in a rising market. A standout opportunity for investors with an eye on the future.”
- Supplied by Bayleys
