The Dominant retail destination in
Dunedin's CBD

❮ ❯

Meridian Mall stands as the premier shopping destination in the Otago region, serving as the cornerstone of retail offerings in Dunedin’s Central Business District.

Anchored by well established retailers such as JB HiFi, Chemist Warehouse, Kathmandu and Smith City, Meridian Mall continues to evolve. Les Mills is set to open its doors on the lower ground floor on a 20-year lease at the end of October, contributing to a diverse line-up of 52 tenants in total, including a thriving food court.

One of its standout features is the ample parking capacity, boasting the largest parking facility within the Dunedin CBD, accommodating up to 558 vehicles. The comprehensive blend of retail, commercial, and parking amenities positions Meridian Mall as a vital hub in the heart of Dunedin, catering to both locals and visitors alike. Reinstatement estimates for the Mall including the adjacent car park, exceed $220 million.

As the second-largest city in New Zealand’s South Island, Dunedin enjoys a robust and diverse economy, poised for significant growth with a forthcoming construction boom. Notably, this includes the construction of New Zealand’s largest-ever hospital, conveniently situated on the doorsteps of Meridian Mall. The Mall enjoys a strategic location, surrounded by prominent employment and industry hubs, most notably the University of Otago, one of New Zealand’s largest universities, and the Dunedin Hospital. These institutions generate substantial foot traffic, enhancing the Centre’s visibility and accessibility.

Current income sits at approximately $6.7 million; the vendor is willing to underwrite a fully leased property income of $8.0 million for a two-year period, with the specific terms and pricing subject to negotiation and agreement.

This presents an excellent opportunity to acquire a premium asset with the potential for a double-digit yield.

Executive Summary

Classification	CBD Shopping Centre
Land Tenure	Stratum in Freehold
Address	285 George Street, Dunedin 9016
GLA	15,535 sqm (approx.)
Location	Dunedin CBD
Site Area	9,839 sqm
Zoning	Central Business District (2GP)
Car Parking	558 car spaces at a ratio of 1 space for 28 sqm lettable floor area
Year Built	1997
Major Tenants	Les Mills, JB Hi-Fi, Chemist Warehouse, Kathmandu and Smiths City
Tenant Breakdown	47 specialties, 5 kiosks, 9 offices
Total Centre Moving Annual Turnover	$87m (September 2023)
Current Income	$6.7m
Estimated Net Income Fully Leased	$8.0m per annum (fully underwritten for 2 years)
Trade Area Population as at 2022	83,440
Trade Area Expenditure as at 2022	$641 million expected to grow to $1.23 billion by 2038
Seismic	Strengthening work underway to achieve minimum 70% NBS
Occupancy (by income)	83.1%

The Location

Meridian Mall occupies a prime 9,389 square metre site nestled in the heart of Dunedin's Central Business District (CBD). It boasts its main frontage along George Street, the city's most prestigious retail high street, cementing its position as a focal point for shoppers.

The mall benefits from its strategic location, with George Street providing effortless access to State Highway 1, facilitating convenient entry to the Dunedin CBD and the surrounding residential areas.

Meridian Mall is an integral part of the CBD's renowned 'Golden Block,' featuring three distinct shopping centres:

1. The Meridian Mall (the primary focus of this description).
2. The Golden Centre.
3. Wall Street.

Though independently owned, these interconnected malls create a seamless shopping experience that spans an entire CBD block, enhancing the appeal of the area to both locals and visitors alike.

Investment Highlights

9,389 square metre,

Prime CBD site

558 carparks- 1 space per
28 sqm retail floor space

Fully leased income
of $8.0m to be
underwritten

MAT at $87m
(September 2023)

Replacement costs
estimated to be circa
$220 million.

Vendor committed to
seismic upgrade to achieve
a minimum 70% NBS rating

Double digit yield
opportunity

Anchored by globally
recognised tenants

Major Tenancies

Method of Sale

For Sale by International Expressions of Interest closing Friday 5th April at 4pm (NZDT) (unless sold prior)

All enquiries, requests for information and arrangements to undertake inspections in relation to this investment opportunity are to be directed to the sole agents, Colliers NZ Limited:

Richard Kirke

Director
Capital Markets

+64 21 299 3120

contact now

Dean Collins

Director
Commercial Broker

+64 27 449 0974

contact now

Find Out More

^{DISCLAIMER: This webpage has been prepared solely for information purposes in order to assist interested parties in making an initial evaluation of the property and does not constitute advice nor purport to contain all of the information that a prospective purchaser may require. In all cases interested parties must conduct their own investigation and analysis of the property and the data set out in this webpage to satisfy themselves in all respects and not rely on the information in this webpage to make their purchasing decision. This webpage has been prepared in good faith and with due care by Colliers, but neither Colliers nor the Vendor accept responsibility hereunder for the accuracy of any part of the information contained in this webpage. Therefore the recipient/s of this webpage to the extent that they rely on the information contained herein do so entirely at their own risk. The Vendor and Colliers NZ Limited (and its brokers) expressly disclaim all liability for representations, express or implied, contained in, or for omissions from, this webpage or any other written or oral communication given to any prospective purchaser in the course of their evaluation and/or offer. This webpage does not constitute an offer for sale or purchase or otherwise.}

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