CBRE has been appointed by Kiwi Property to sell The Plaza Shopping Centre in Palmerston North. The high-performing asset will provide investors with an exceptional opportunity to acquire the Manawatu’s leading retail investment.
Strategically located at 84 The Square, Palmerston North, The Plaza commands a total trade area of approximately 166,000 people. Located in the heart of the city, The Plaza represents 80% of the enclosed mall space in the region. No other nearby centre offers the scale and range of major retailers, specialty stores and dining options.
CBRE’s Brent McGregor and Simon Rooney have been appointed to market the property for sale on behalf of Kiwi Property, via an Expressions of Interest campaign, closing on Thursday 26 November 2020.
McGregor said, “The Plaza is an opportunity to acquire one of New Zealand’s leading regional shopping centres. The asset offers a large total trade area with the closest competing regional shopping centre 91km away.
“The Plaza offers strong trading and tenant fundamentals with Farmers, Kmart and Countdown all holding anchor tenancies.”
Rooney said: “New Zealand continues to gain traction as a global retail investment destination, with foreign investors attracted to the compelling investment fundamentals, inclusive of low retail supply per capita, a strict planning regime, ongoing strong population growth, robust retail turnover growth and an attractive yield profile.”
National retailers account for 97% of total gross lettable area (GLA) and 89% of income, with the major anchors comprising 59% of GLA. Almost fully occupied, The Plaza returns an estimated net income (fully leased) of $16.7 million.
Built in 1986, The Plaza was extended in 1991 and underwent a $93 million redevelopment in 2010. This increased the GLA by nearly 60%, adding 42 new specialty stores. There is on-grade and multi-level car parking with capacity for 1,251 vehicles.
McGregor said that the resilience of Manawatu coupled with its diverse and self-sufficient economy will be attractive to potential purchasers.
“With over $4.75 billion of local infrastructure investment planned in the immediate future, The Plaza is poised to benefit from the investment in the region. Astute investors should contact CBRE for more information about this opportunity,” he added.