Glenfield Mall in Auckland has been sold to a syndicate of Australian investors for $120 million, marking the biggest shopping centre sale in Auckland for more than 10 years.
The 30,558sqm property is the investor syndicate’s first purchase in New Zealand. Located 8km north of Auckland’s CBD, Glenfield is anchored by Woolworths, The Warehouse, Farmers and Briscoes, with 12 ‘mini-majors’ including Chemist Warehouse and Cotton On. It also features more than 80 speciality retailers.
JLL conducted the expressions of interest campaign on behalf of the vendor, which revealed that more than half of the bids received came from offshore investors.
“New Zealand’s retail fundamentals are among the strongest we’re tracking globally,” Nick Willis, executive director at JLL Australia and New Zealand, said.
“Population and GDP growth through to 2035 are forecast to sit at the stronger end of the developed world, and a new net migration growth cycle is now emerging, yet it remains one of the most under-supplied retail markets we track anywhere.”
JLL’s head of retail, Sam Hatcher, called the comparable scarcity of New Zealand’s shopping centre market a draw for investors.
“This was only the third time since 2010 that a 100 per cent controlling interest in an Auckland regional shopping centre has changed hands,” Hatcher added. “New Zealand carries just 0.6 square metres of retail floorspace per capita compared to 1.0 in Australia and 2.2 in the US – that structural undersupply, combined with specialty rents sitting materially below benchmark and a tenant base delivering strong productivity, creates a clear runway for income growth.”
“Auckland alone accounts for around two-thirds of the retail floorspace across New Zealand’s three main centres. Buyers understand that if you want scale in this market, you have to acquire it – you cannot build it.”
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