Provincial New Zealand has growing appeal for commercial property investors looking for opportunities elsewhere in the face of fierce competition in main cities such as Auckland.
With this in mind, Charlie Oscroft, director of investment sales and syndications for Colliers International, expects keen interest in four tenanted retail investments in Timaru’s prominent new development, The Landings. The Landings is to be auctioned on July 20 at 10am.
Located on State Highway 1, 200m from the city centre, the buildings are being offered for sale individually by owners Timaru Retail Project Ltd which developed the $10 million complex.
The four tenancies have 6-10 year leases to national retailers Hell Pizza (87sq m), Burger Fuel (119 sq m), Pita Pit (86 sq m) and Columbus Coffee (199 sq m). Rental values per annum range from $36,900 to $79,600. The complex has more than 59 car parks. Completed in February, The Landings comprises a total of seven retail and two office spaces. Other tenants include Timpany Walton Lawyers, and Hunting & Fishing New Zealand.
“Auckland is a highly competitive market and our experience is that investors are starting to look elsewhere in the country for good quality opportunities such as this. Some of these areas have been overlooked in the past but they are certainly attracting attention now.
"For example, several Auckland bidders recently vied to buy KFC in Oamaru at auction. The successful bidder was from Auckland and there was significant unsatisfied demand.”
Cheryl Macaulay, a director of Timaru Retail Project Ltd, said the newly-opened complex was already benefitting from its high profile location where 15,000 cars pass daily.
“The tenants are really enjoying the location. In its opening week Pita Pit had the best first week of any Pita Pit store in New Zealand.”
Investment specialist Courtney Doig, who is marketing The Landings in conjunction with Oscroft, expected strong local interest in the properties and said they would have wide ranging appeal.
“The calibre and length of the tenancies make the properties ideal bottom drawer investments to add to a portfolio or entry level quantum for first time investors. Timaru is regarded as a thriving region with continued population growth. These tenants are all new to Timaru, indicating the confidence of retailers in the area.”