Big regional centre is almost fully occupied and agents are marketing it. Photo / Colliers
Big regional centre is almost fully occupied and agents are marketing it. Photo / Colliers
A large ASX-listed business wants to sell an Auckland mall it bought six years ago and which it holds in a $58 million fund.
Elanor Investors Group manages A$2.9b-plus ($3.2b) of real estate funds in NZ and Australia, specialising in the office, healthcare, retail, hotel, tourism and leisure sectors.
Lastdecade, it paid A$47.7m ($51.7m) for Papatoetoe’s Hunters Plaza shopping centre.
An Elanor spokesman said the centre was acquired in 2017 in a fund, with an investment term of around five years.
“During that time, we have delivered on our investment strategy, with:
Annual sales increasing by 60 per cent, driven by strong sales performance of the centre’s major tenants, Kmart and Countdown;
Renewing the Kmart lease to 2030;
Recovering strongly from Covid-19 pandemic trading restrictions;
Improving the centre’s tenancy mix, introducing mini-major retailers including City Fitness - to be further expanded - Chemist Warehouse, Postie Plus and Nagindas;
Maintaining 99 per cent occupancy at the centre.”
Since 2018, the mall’s annual retail turnover has increased from $57.5m to $92m, the spokesman said.
In April, Elanor announced it had struck a A$41.8m deal to buy rival funds manager Challenger, itself with A$3.4b under management. That deal is due to be finalised by June 30 but the spokesman said this had no relationship to the decision to sell Hunters Plaza.
The Australians held the single-level mall in the Hunters Plaza Syndicate with a $58m valuation, 98 per cent occupied with a weighted average lease term of 3.9 years.
Colliers’ Richard Kirke and Blair Peterken are leading the campaign to sell it.
“Hunters Plaza is a modern, single-level sub-regional shopping centre 9.5km from the Auckland International Airport and 19km from the Auckland CBD,” Elanor says.
The mall is on 2.8ha, built in 1991 and “comprehensively refurbished” in 2015.
It is anchored by a Countdown and Kmart. The anchors are supported by 3 mini-majors and 49 specialities.
Last year, the Herald reported on a robbery at Christies Watches and Jewellery, Hunter’s Plaza.
Photos of the robbery show display cases smashed open and glass littering the shop floor.
Michael Hill Jeweller stores have also been targeted lately.
The Papatoetoe mall is at 217 Great South Rd and marketing says: “The current owners have made significant improvements to the centre throughout the ownership period”.
It draws customers from a large, widespread residential catchment including Papatoetoe, Ōtāhuhu, Māngere, Ōtara and East Tamaki, which are within a 3km radius. Compared to similar sub-regional centres throughout New Zealand and Australia, Hunters Plaza had been in demand during recent challenges,Colliers said.
The mall has almost half a hectare at the rear: a flat, regular-shaped development site of 4453sq m, now used as 137 surplus car parks.
“This is set to be subdivided on to its own title to create a prime independent development opportunity. Located on Sutton Cres, and benefiting from some 180m of road frontage, the site will have its own unique identity while still benefiting from its proximity to the popular shopping centre and sports grounds. The opportunity exists to purchase this land independently of the centre or collectively,” marketing says.
Anne Gibson has been the Herald’s property editor for 23 years, having won many awards, and covered property extensively here and overseas.
