The West Melton Shopping Centre in Canterbury is for sale through Colliers Christchurch, offering investors a fully occupied, modern retail complex that is the only development of its kind serving the wider surrounding residential catchment.
This post-earthquake build was constructed in 2016 by its current owners and is fully occupied, currently featuring 12 mixed occupiers across 13 tenancies.
The centre sits on 8,330sq m of Business 1-zoned land at 736 Weedons Ross Road, with a building area of approximately 2,602sq m, 129 on-site car parks, and a net rental income of $854,539 per annum.
The anchor tenant is a Four Square supermarket, which is understood to be seeking to expand its presence.
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The balance of tenancies comprises a strong health service skew: a medical centre, pharmacy, and physiotherapy practice, alongside hospitality and general retail, including a veterinary practice.
The centre provides a wide offering that caters for the needs of the catchment.
"Developed by the current owners, this is the only retail development servicing the immediate West Melton residential area," says Marius Ogg, Investment Sales Broker at Colliers Christchurch.
"Commercial land available for future development in the area is very limited. West Melton is an extremely high-growth location with multiple new residential subdivisions and more housing proposed."
The town's population rose 4.9 per cent in the year to June 2024, driven by sustained residential development and the strength of the surrounding rural economy. West Melton sits at the heart of the Selwyn District, confirmed by Stats NZ as the country's fastest-growing district.
Courtney Doig, Director of Investment Sales at Colliers Christchurch, who is marketing the centre with Ogg, describes the complex as a high-profile, attractive post-earthquake build .
"The centre is definitely not traditional strip retail. There's an almost perfect mix of service-related occupiers including what's effectively a medical hub."
Most leases are reviewed to CPI or the greater of market or CPI, providing inflation protection and potential rental growth as the catchment continues to expand.
"This is likely to be of particular interest to someone in the area, possibly rural money seeking an off-farm investment in this high-growth locality," Doig says.
"The income is well-structured, the building requires no immediate capital expenditure, and the tenant mix is as strong as you'll find in a centre of this size.
"The underlying investment fundamentals are sound.
"Fully occupied assets of this quality and scale are scarce in the Selwyn District. The combination of a modern building, inflation-linked income spread across 13 tenancies, and constrained future supply in the immediate area makes for a proposition that is compelling."
The property is offered for sale by deadline private treaty closing at 4pm on Thursday 14 May, unless sold prior.
- Supplied by Colliers
