The opportunity to acquire a highly popular, newly-built mixed-use development within an established commercial precinct in southwest Christchurch is on offer with the sale of The Landing.
The 12,808 sqm property, on two titles, is the central retail and community hub for the premium Wigram Skies residential community developed by Ngāi Tahu Property. It is 100% tenanted by over 20 occupiers and services an affluent local catchment.
Spread over two building complexes at 59 The Runway and 135 Corsair Drive, the property is being marketed by Tim Rookes and Cameron Darby of CBRE and is for sale by deadline private treaty closing on August 19 at 4pm.
The first occupiers of The Landing commenced trading in 2015 and the centre, developed by Ngāi Tahu Property and built by Armitage Williams to 100 per cent of new building standard, has since gone from strength to strength, says Rookes.
Start your property search
“This is an excellent opportunity to acquire an established, fully tenanted retail development in a market where quality real estate investments are in short supply,” he says.
“The Landing is occupied by a lengthy roll-call of well-known local and national names and also benefits from strong neighbouring anchor tenants, which together continue to draw locals as well as people from across Christchurch to its boutiques, services and food outlets.”
Unlike the retail sector as a whole, The Landing has proved to be somewhat counter-cyclical following the Covid downturn and the development is now fully occupied, Darby says.
“The occupiers in The Landing benefit from a large, affluent local customer catchment which has shown strong loyalty to the shops and services within this thriving community hub. It’s a really positive post-Covid story where the ‘support local’ movement has been strongly demonstrated and people are flocking to their local commercial centre.”
In an environment where investment product is limited, investors seeking diversification are snapping up the few high-quality, newly-built, well-located and fully-tenanted retail offerings that come to the market, says Rookes.
“This will be considered a quality retail investment at a time when comparable offerings are scarce. With investors coming up against a shortage of attractive retail stock, this property is expected to attract national interest.”
The property is spread over two buildings totalling 3130 sqm of net lettable area on opposite sides of The Runway, a central promenade lined with boutique retail and eateries within The Landing. The centre is serviced by over 400 on-grade car parks owned on a collective basis with other Landing tenants.
Over 20 retail, hospitality and office tenants with a weighted average lease term of around 4.5 years generate net passing income of nearly $1.2 million a year.
The tenant list includes well-known names such as Subway, Joe’s Garage, The Good Home Gastro Pub, Mexicali, Muffin Break, Unichem, law firm Saunders & Co and Fush, the fish & chip restaurant which gained national attention after offering free te reo Māori lessons in 2018.
Other tenants include a Box Fitness studio, Indian restaurant, sushi outlet, clothing boutique, childrens’ gift boutique, an insurance broker, hair salon and Joe’s Garage, which along with The Good Home, open onto a landscaped ‘town square’.
All the shops and food outlets have excellent exposure to The Runway, with the office tenants located upstairs.
The tenants at 59 The Runway and 135 Corsair Drive benefit from several larger complementary neighbouring occupiers which provide a significant drawcard to the wider precinct’s “destination” status, Darby says.
“The occupiers along The Runway benefit from significant anchor tenants within the wider Landing development which include a New World supermarket, Wigram Vet, Kindercare Early Learning Centre, Wigram Health and the just-opened Silky Otter Cinema, which also opens onto the town square.
“These occupiers help generate additional business for all the tenants in the development by drawing people to the area, and help secure the strong, long-term investment fundamentals of The Landing as a whole.”
The popularity of the development and the momentum it has generated have been such that the final stage has already sold and is under construction with nearly 100 per cent pre-commitment, says Rookes.
“The Landing has established itself as the destination of choice for the wealthy Wigram Skies catchment and beyond, providing a genuine hub for the community.”
The property also offers investors the peace of mind of post-earthquake construction, as well as the flexibility of the two buildings, on separate titles, being able to be treated as independent investments in the future, he adds.
Ngāi Tahu Property’s Wigram Skies development is regarded as one of the most significant residential developments in Christchurch.
In 1997 Ngāi Tahu Property purchased the former Wigram Aerodrome site with the long-term view of subdividing the land and creating a sustainable, master planned community. The development has since benefited from the post-earthquake population shift to higher-quality land in the west of the city.
Wigram Skies is now fully sold out and home to thousands of residents who enjoy local amenities within the development including parks and reserves, a school, and the retail centre of The Landing. The history of the Royal New Zealand Air Force remains an integral part of the community and is remembered in the Air Force Museum, historic airbase buildings and street names.
Demographic statistics from CBRE Valuation indicate The Landing’s customer catchment includes a higher proportion of full-time employment relative to national averages, as well as a higher median personal and household income compared with national averages. Household ownership levels are also above national averages, while population growth forecasts are higher than both national and regional averages.
- Article supplied by CBRE
