Higher yields provided by regional commercial property investments means the sale of the centrepiece of Timaru’s downtown retail precinct, the Farmers building, is likely to attract interest from around the country.
The property at 252-264 Stafford Street, Timaru, has a longstanding tenancy with Farmers in place.
It is being jointly marketed by Colliers Christchurch Investment Sales Brokers Mark Macauley and Ben Cameron.
“This is an attractive proposition for investors seeking secure returns in a regional centre because of the combination of a newly committed Farmers lease, 100 per cent occupancy, and excellent structural engineering performance,” Macauley says.
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“Listed and unlisted funds and syndicates are visibly active in the Canterbury market presently.
“Falling deposit rates are pushing investors to seek higher returns, while sticky inflation is sharpening the focus on preserving purchasing power.”
The type of buyer attracted to this property might well be a syndicate of high-net-worth individuals, Cameron says.
The building is being sold by such a group who have owned it for decades and now wish to realise the investment.
A recent comparison showcasing the demand for southern Canterbury assets would be the blue-chip, high-profile corner site in central Ashburton marketed by Macauley and Cameron, which has three nationally recognised tenants – McDonald’s, Harvey Norman, and a Z Energy service station.
That property attracted national interest from seven parties and is in the final stages of negotiation for sale.
The Farmers main street address in Timaru benefits from strong pedestrian flow and visibility.
It is a substantial commercial property – comprising 5,466sq m of floor area across a 2,747sq m freehold site – with proven seismic resilience and excellent accessibility provided by the 150 spaces in the linked municipal car park in Sophia Street.
A distinctive feature is the prominent character facade dating to 1902. The building has undergone continuous enhancement with major structural upgrades in the 1920s, 1940s, 1950s, 1960s, and 1990s progressively strengthening the property and expanding its commercial capacity.
“Farmers has been a fixture in Timaru for generations,” Cameron says.
“Its commitment to a fresh five-year tenancy term demonstrates confidence in both the property and the city’s retail environment.
“The character facade, central location, and functional connection to public parking create a compelling package for both the current tenant and future ownership.”
Farmers is part of the James Pascoe Group – one of New Zealand’s largest privately owned retail groups operating more than 650 stores across New Zealand and Australia with over 11,000 employees. The group’s portfolio includes Farmers, Pascoes The Jewellers, Stevens, and Whitcoulls.
Timaru serves as the principal commercial centre for South Canterbury, with a district population of approximately 49,500 people.
Population growth for the district was more than 4 per cent in the year to June 2024, four times the national average.
The city benefits from its strategic position on State Highway 1, midway between Christchurch and Dunedin, and from the Port of Timaru’s logistical advantages for regional export activities.
The Farmers building is offered for sale by deadline private treaty with offers closing at 4pm on Wednesday 26 November, unless sold prior.
- Supplied by Colliers
