In Queenstown’s biggest retail transaction in more than a decade, Frankton’s Remarkables Park Shopping Centre has sold for $55 million-plus.
The new owners are undisclosed South Island-based private investors who’ve bought the seven-building centre from Diversified NZ Property Trust.
That company, which engaged Stride Property to manage the centre, in turn bought the 3.7-hectare property from its initial developer, Porter Group, in 2008.
Built in stages between 2001 and 2013, the centre has about 50 tenancies spread over 13,700 square metres of lettable space and across retail, office, food and beverage and education-and arts-related uses.
Not included in the sale are the separately-owned New World, Torpedo7 and Harvey Norman buildings.
The sale was brokered by local Colliers director Mark Simpson, his colleague Mary-Jo Hudson and Peter Herdson from Colliers’ capital markets team.
Simpson says a transaction at this level ‘‘bolsters the outlook for the Southern Lakes district at a time when the rest of the country is seeing a slowdown in commercial sales activity and softening in yields’’.
‘‘The sale is a significant show of confidence in the region both from an economic standpoint, but also for commercial property investment.’’
Simpson says the new buyers are passionate about Queenstown’s growth story and will continue to invest in the development of the centre.
Centre manager Nick Lambert, speaking for the new owners, says they see ‘‘the opportunity to add some value along the way by continuing to refine the offering and revitalise the centre mix and dynamic to complement the existing retail offerings in Frankton and downtown Queenstown’’.
Simpson notes Remarkables Park is effectively one of just two main Frankton shopping centres as Five Mile and Queenstown Central, on the other side of the airport runway, though separately owned, are one centre as far as consumers are concerned.
When these latter two were developed, he admits there was some attrition at Remarkables Park.
However, in recent times, it’s found its niche, he says, including more activity-based retail like the flagship Hunting & Fishing store, Torpedo7 and Evo Cycles.
It’s also been bolstered by the Te Atamira arts and cultural centre, which opened 11 months ago and comprises 22 purpose-built spaces for the performing and visual arts, in particular.
Simpson also notes the centre’s well regarded for its generous carparking and extensive landscaping, while the Hawthorne Drive extension around the airport improved its accessibility.
In addition, he says the centre’s ‘‘actually in the middle of arguably one of the largest mixed-use development blocks that’s still largely undeveloped in the area’’.
‘‘It can cater for residential, high-density with good heights, further commercial, recreational and educational uses.’’
Simpson says the sales process was by invitation-only private treaty.
