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The Palms, Christchurch. Source: CBRE
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  • AMP Capital Shopping Centre Fund sells The Palms shopping mall in Christchurch to Adelaide-based DiMauro Group for NZ$88.8 million (A$85.3 million)
  • CBRE says three out of eight bidders for the asset were from Australia
  • The 34,395-square-metre facility has a main tenant WALE of 8.2 years
  • Major, national, and chain shops occupy 80 per cent of the gross lettable area and provide 78 per cent of the overall gross rental income
  • DiMauro Group owns more than $1.4 billion in property assets in Australia and New Zealand

DiMauro Group, based in Adelaide, has added to its New Zealand retail portfolio with the NZ$88.8 million (A$85.3 million) purchase of The Palms, a significant Christchurch regional shopping mall located four kilometres north-east of the CBD.

CBRE’s Simon Rooney and Brent McGregor negotiated the off-market acquisition on behalf of the AMP Capital Shopping Centre Fund.

Mr Rooney pointed out that three of the eight bidders for the asset were from Australia, including DiMauro Group, which owns more than $1.4 billion in property assets in Australia and New Zealand, including the West City Shopping Centre in Auckland and the North City Shopping Centre in Wellington.

“New Zealand continues to gain traction as a retail investment destination, with offshore investors attracted by the country’s compelling investment fundamentals, including low retail supply per capita, ongoing strong population growth, robust retail turnover growth, low acquisition costs and an attractive yield profile,” Mr Rooney said

The 34,395-square-metre facility is anchored by retailers such as Farmers department store brand, Woolworths Group-owned grocery chain Countdown, and Reading Cinemas, with a main tenant WALE of 8.2 years.

Major, national, and chain shops occupy 80 per cent of the gross lettable area and provide 78 per cent of the overall gross rental income.

“Despite border closures and restrictions, investor interest in the New Zealand market remains high, with low interest rates enabling transactions to proceed,” Mr McGregor said.

“In the case of The Palms, the asset’s expansive and well-established total trade area population of 151,461 and significant retail spending capacity of $1.87 billion, together with the centre’s strong growth profile, were key investor draw cards.”

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