With consumer spending improving, Centuria NZ’s latest offer presents an attractive opportunity for investors to share in the ownership of Dunedin’s main enclosed shopping centre, Meridian Mall, a substantial CBD asset with diversified income within a low-vacancy retail location.
Centuria NZ Meridian Property Investment has been established to acquire the property, together with the unit title to the associated carpark building. The offer is open to everyone in New Zealand with a minimum investment of $25,000.
Investors are forecast to receive a 9 percent per annum pre-tax cash distribution for the financial periods ending 31 March 2027, 2028, and 2029 paid monthly, together with the potential for capital growth, with the five-year investment term providing a defined investment horizon.
Meridian Mall provides 13,500sqm of gross lettable area across three levels and benefits from high levels of pedestrian traffic.
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The property is home to a wide range of retailers, with large format occupiers including JB Hi-Fi, Chemist Warehouse, Kathmandu and Toyworld.
Other national and international tenants include Cotton On, Sunglass Hut, Michael Hill Jeweller, Merchant 1948, Peter Alexander and Strandbags.
The food and beverage offering includes well known chains such as Burger King, Coffee Club and Tank Juice, with a large food court operating from the lower level.
Two onsite fitness centres complement the offering with Les Mills providing a premium state-of-the-art facility whilst CityFitness, which opened in June 2026, caters to a broader demographic delivering an accessible, value-driven option.
There is also a medical centre on the top floor.
The property occupies a prime position within the city’s core retail precinct which recently benefited from the Dunedin City Council’s $50 million streetscape upgrade, significantly enhancing the area directly outside the property.
Centuria Funds Management (NZ) Limited is the issuer and an established and experienced fund manager with significant property market expertise, a strong track record and thousands of investors.
Part of ASX200 listed Centuria Capital Group, the Group has over $20 billion of Trans-Tasman assets under management as at 30 June 2026 including commercial, industrial, office, retail, healthcare, agricultural and self-storage properties.
Centuria NZ chief executive Mark Francis says the investment combines an established CBD location with diversified income.
“Dunedin is one of the few cities in New Zealand where the core characteristics of the CBD have been retained, and it remains the pre-eminent shopping destination.
"The city’s blended retail property vacancy rate also generally sits lower than other major centres and the region has the joint-lowest unemployment rate in the country.”
“In terms of diversification, there’s over 50 tenants and no single tenant contributes more than 8.2 percent of total income, meaning low reliance on any one income stream.
"Around 90 percent of current base rent is subject to further fixed, CPI-linked, or stepped rental growth, which is positive for future income growth.”
Francis adds that with the combination of these property attributes and the attractive forecast return , potential for capital growth, and defined investment term, all with a minimum investment of $25,000, they expect strong interest in the offering.
Bayleys Real Estate are Centuria NZ’s sole selling agents. Bayleys Head of Funds and Investment Products, Mike Houlker, says that the purchase price of the property is $89 million.
“This reflects a significant discount to the property’s estimated replacement cost for insurance purposes, which excludes land costs, of approximately $193 million.
"This substantial differential suggests there are significant barriers to entry for any new competing comparable shopping centre in the future.”
Bayleys Funds and Investment Products Manager Samara Phillips says the South Island economy is generally outperforming the North Island and the Meridian Mall’s location within Dunedin, the South Island’s second-largest city, with a metropolitan population of approximately 131,000, is a further advantage.
“Meridian Mall benefits from its proximity to the University of Otago, with approximately 19,000 students and 4,000 staff, in addition to the new Dunedin Hospital.”
“The $1.9 billion new Dunedin Hospital project, described as the largest health infrastructure investment ever undertaken in New Zealand, is approximately 500 metres from the property and is expected to contribute $429 million to Dunedin’s economy.”
Phillips adds that consumer retail spend is improving and the retail property market is seeing a boost in activity.
“Electronic card transactions for key consumer purchases have shown growth, rising from $61 billion in 2019 to $75 billion in 2025 – growth of 23 percent, and core retail sales volumes (which strips out the volatile fuel component) have now risen for seven quarters in a row, after contracting through most of 2023 and 2024.”
“In recent years the New Zealand retail property market has seen a boost in activity from investors seeking shopping centre assets and this is reflected in global sentiment.”
- Supplied by Bayleys and Centuria NZ
