In recent years TGH has received a number of unsolicited local and offshore enquiries from investors seeking to invest alongside TGH in this landmark asset – New Zealand’s largest retail site held in single ownership. TGH believes that the time is now right to confirm an experienced joint venture partner and operator to help take The Base to the next level of excellence and ensure that retail tenants and shoppers alike continue to have an experience up there with New Zealand’s best.
CBRE’s John Schellekens and Brent McGregor and DeutscheCraigs’ David McCallum will manage the Expressions of Interest campaign on behalf of TGH, the investment arm of the Waikato-Tainui tribe
Indicative bids will be sought by mid-November with a view to finalising a sale early next year.
The Base is situated on a circa 31ha site in Te Rapa, at the northern entrance to Hamilton. It comprises the award winning Te Awa Mall, a neighbouring large format retail centre and a 6.25ha tract of formed and serviced development land.
CBRE’s Mr Schellekens said the sale represented an unprecedented opportunity to secure a stake in New Zealand’s largest single site retail and entertainment destination.
“The Base dominates its market, with 7.5 million visitors annually, and is extremely well positioned to capitalise on the region’s strong growth prospects,” Mr Schellekens said.
“Over the next two decades, the Waikato region is projected to be one of fastest growing regions in New Zealand. This continued growth will support the ongoing evolution of The Base, which has a comprehensive, council approved plan for further development.”
Construction of The Base commenced in 2004 and is on-going, currently providing 190+ retail stores totalling over 85,000sqm along with more than 2,500 car parks.
A central component of the site is the award winning Te Awa Mall, completed in 2011, it is a fully enclosed regional shopping centre anchored by Farmers department store and one of the leading Hoyts Cinema complexes in the Southern Hemisphere.
While the mall has an existing lettable area of 31,400sqm, there is a structural shell on the upper level that could support a further 8,500sqm of retail space.
Complementing the mall is a large format retail centre, which has a net lettable area of circa 53,900sqm. Major tenants include The Warehouse, Mitre 10 Mega, Briscoes, Rebel Sport, Noel Leeming and Heathcote Appliances
Considerable scope for further development is available on the adjoining 6.25ha of vacant land.
CBRE’s Mr McGregor said this site had a permissive zoning and a council approved development plan for 50,000sqm of gross floor area.
“The required road infrastructure is already constructed, with this land providing considerable scope to leverage off the success of the existing retail development,” Mr McGregor said.
“Discussions with key prospective tenants are already progressing, which will provide significant future upside given the current strength in the New Zealand retail market.”
CBRE data highlights that New Zealand retail sales increased nationally by 4.1% in the 12 months to June 2015. This strong result represented rolling annual total retail sales of $77.3 billion - an increase of $3.35 billion on the same time last year.
TGH chief executive Chris Joblin said proceeds from sale of a 50% interest in The Base sale would be used to reinvest in a range of asset classes in the Waikato and Auckland regions in keeping with the company’s strategy to diversify its asset base. The sale process does not include the underlying land, which will remain in Waikato-Tainui ownership.
“We are proud of the achievements of Waikato-Tainui and TGH in developing and growing The Base to be a national leader and we’re excited by the opportunities this next chapter of partnering will bring to grow and extend this retail leadership for The Base,” said Mr Joblin.
The 50% interest in The Base is being offered for sale amid continued demand for commercial property investment opportunities in New Zealand.
CBRE figures highlight that H1, 2015 investment activity reached levels not seen since 2008, with $1.517 billion in commercial property assets traded.
Offshore investors injected $504 million into the market, including buyers from Australia, China, Singapore and Indonesia.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.