A local property investor has bought the Prebbleton Village shopping centre in Selwyn District for $13.8 million – the largest suburban convenience retail centre sale in the Christchurch area since the market peak in 2021.
Prebbleton is 11km south of Christchurch CBD. The Springs Road complex was built by local developers Mon Group in 2022 and comprises 15 tenancies across three buildings.
Courtney Doig, Director of Investment Sales at Colliers Christchurch, says there was widespread interest in the thriving shopping centre.
“While most of the enquiry came from local parties, there was also a noticeable uptick from North Island investors. We’re encouraged by the renewed interest in retail assets, particularly given the sector’s challenges in recent years,” Doig says.
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“The 6.4 per cent yield achieved reflects a noticeable improvement, nearly a full basis point sharper than where the market was 18 months ago for similar assets in comparable locations.”
Doig says the village was bought as one freehold offering, although the vendors had drawn up a subdivision plan so the buildings could be sold individually.
“The purchase of the entire complex shows real confidence in the market and in Selwyn District, which is continuing to boom.”
Prebbleton’s population has grown every year since 2000, averaging 3.4 per cent per annum over the five years to 2024 compared with 1.4 per cent per annum across New Zealand. Since 1996, growth in Prebbleton reached a high of 21.9 per cent in 2002 and a low of 1 per cent in 1999.
The area has undergone huge population growth in the past decade with multiple new residential subdivisions and more in the pipeline. Proposed development plans mean Prebbleton could almost double in size.
Doig says Mon Group is about to begin a similar development in Rolleston offering a diverse mix of service and community retail.
- Supplied by Colliers
