Retail centre sale shows high demand for investment property in Christchurch

19 November 2018

A small suburban retail centre in Sydenham, Christchurch, has been sold to a local investor for $3.09m in a deal negotiated by Savills commercial sales broker Ben Cameron.

The 757m2 centre, on a 2,105m2 site at 289 Colombo St, is leased to five separate tenants, generating $211,014 in net annual passing income. The sale price represented a yield of 6.8%.

The sale further illustrates the attractiveness of suburban retail investments in Christchurch, as buyers search for higher-returning investments amid ongoing low interest rates, says Cameron.

“There has been very high demand for suburban retail investment properties over the past couple of years and the buyer market remains very strong in this sector,” he says. “People are lining up for suburban retail investment stock and demand far exceeds the availability of properties for sale.”

The Colombo St retail centre was sold to a local investor following a deadline private treaty negotiation process which involved bids from four separate buyers – three of whom were Christchurch locals, Cameron says.

“The successful buyer lives in a neighbouring suburb and passes the site every day. This is a further strong trend we are often seeing, where properties are sold to investors who live locally.

“Many buyers favour local investment properties, where they understand the dynamics of the tenants’ businesses. They’ve visited the properties, often as customers themselves, observing how well the tenants seem to be trading. This gives them increased confidence to invest,” he says.

“Everyone loves the convenience and familiarity of their local cafés and shops, and owning a commercial property close to where you live is evidently very attractive to a lot of people.”

The retail centre is anchored by F45 Gym, which occupies the largest tenancy. Other tenants include Pizza Hut, PC Service Centre and Sushi Café. 

The fact that it was fully leased and located on a main road made it a highly desirable investment, says Cameron.

“The centre was viewed as a highly bankable buy with 100% occupancy, a good variety of tenants including international brands, and a highly prominent location with off-street parking adding the crucial convenience factor for customers.”

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Key Contacts

Ben Cameron

Ben Cameron


Savills Christchurch

+64 (0) 21 107 3540