The mall has 27,000sq m of gross lettable area. Photo / Supplied
The mall has 27,000sq m of gross lettable area. Photo / Supplied
Why would a $40 million Christchurch investment property be listed on the market again when it had only just sold?
And who were the buyers and what were their motivations for such unusual activity?
Those were the questions being asked in investment circles when Christchurch's Eastgate shopping centre hit themarket after only being sold at the end of last month.
Auckland investors Ben Cook and Kurt Gibbons' Manhattan Capital bought the property in a deal which settled on August 29. They are now selling again.
Kurt Gibbons, who owns the Christchurch property with Ben Cook. Photo / Michael Craig
Vendor NZX-listed Asset Plus announced late last month that terms of an 18-month contract had been completed, but never in several NZX announcements about the transaction said who bought it.
CBRE agents Tim Rookes and Cameron Darby have now listed the mall for sale in the international expressions of interest campaign closing October 12. The property is for sale in six individual titles or one.
The centre is 3km from Christchurch's CBD. Photo / Supplied
Mark Francis of Asset Plus said he could discuss no aspects of the deal, especially who bought it.
"I can't tell you who the buyers are. I don't know what they are going to do with it. They bought it 18 months ago with a long settlement. That's all I can tell you. There are all sorts of motivations on why an asset would be sold," Francis said.
But Gibbons said he and Cook had been working on the property for nearly two years and had repositioned it so it was ready for sale directly after settlement.
"We have subdivided it and also leased out more space to Countdown. We're now just looking at our options," Gibbons said.
He and Cook jointly developed the new $50m Herne Bay Metro which opened mid-winter.
The supermarket was granted a liquor licence despite opposition. The 4000sq m store has 56 basement car parks, in the suburb with New Zealand's highest house prices.
The CBRE agents said Christchurch's Eastgate had large-format retail anchor tenants Countdown and The Warehouse, both on freehold titles.
Ben Cook owns the Christchurch property with Kurt Gibbons. Photo / Supplied
Freestanding KFC and Taco Bells were on other titles. A shopping mall component, with several essential services and speciality retailers, was on yet another title.
"The centre is well designed, with the two retail majors sitting alongside the mall component and benefiting from convenient car parking and dedicated access.
"This means the asset can be considered predominantly a large format offering, with the additional benefit of a speciality retail component and freestanding fast food outlets," the CBRE agents said.
Eastgate had gross lettable floor area of 27,500sq m but stood on a 6.76ha site. That offered big development opportunities.
It was 93 per cent occupied by area and 3km from the city's central area.
"Recent subdivision provides six freehold titles," advertising said. "Opportunity to add value via fresh centre management."
Strong cashflow security came from ASX and NZX-listed tenants Woolworths, Warehouse Group and Restaurant Brands providing 67 per cent of estimated total net passing income, CBRE said.
More than 6ha of land - much of it as flat car parking areas. Photo / Supplied
These tenants occupied 57 per cent of total gross lettable area and had their own dedicated access independently from the shopping centre, CBRE added.
Buildings occupied an under-utilised site on six individual freehold titles. That would give investors flexibility.
The centre's address was listed as 20 Buckleys Rd, Linwood.
