Lendlease is looking to offload its New Zealand retail portfolio, owned through its Real Estate Partners New Zealand fund, in a deal it expects to be worth more than $326 million.
The fund secured the portfolio in October 2011, along with a fourth Wellington-based asset, for $197 million. The portfolio forms part of the $1.4 billion consortium takeover of the ING Retail Property Fund in 2009.
The portfolio of three includes assets across both the North and South Island.
The three asset portfolio includes outlet centre Dress Smart in Auckland suburb Onehunga, another Dress Smart in Christchurch suburb Hornby, and retail asset Meridian Mall in Dunedin.
Lendlease fund manager Matt Bowyer said the fund, initiated to run for a fixed-term, had now triggered the sale process for the assets, offered in one line.
Colliers International and CBRE are appointed to manage the international expressions of interest campaign for the centres described as top performers in their respective catchments.
“The portfolio offers strong income streams with future growth opportunities and expansion potential,” Colliers Lachlan MacGillivray said.
CBRE’s Simon Rooney said that the low acquisition costs and a global attractive yield was expected to generate offshore interest.
“While Christchurch and Auckland are well known investment destinations, the Dunedin asset will also be highly-sought after due to the initial yield, CBD location and the council’s significant infrastructure investment in healthcare and education.”
MacGillivray said New Zealand had been attracting greater enquiry from international retailers.
“Around the world, the outlet centre market is relatively small in terms of the number of centres and the number of investors and operators participating.
“Outlet centres have successfully closed the gap between full price retail and highly disruptive internet sales as they provide a level of investment diversification from traditional shopping centres,” MacGillivray said.