“Hornby has shown the most retail leasing activity of any suburb in Christchurch since 2011,” says Colliers’ Nick Doig.
The Hub shopping centre is a strong performer with 800 car parks to service its 70 speciality stores, all banks, and anchored by Farmers and Pak’n Save. The Hub is undergoing a $60 million expansion, bringing in 25 new stores in three stages. New food and beverage will open onto Chalmers St and create a square with the Hornby Workingmen’s Club, which has just completed its first year of trading from a $10 million 4,000m² development of new bulk destination retail.
“The club decided that its two outdoor bowling greens were increasingly important real estate and we swapped a ‘money pit’ for strong rental income,” Hornby WMC general manager Daniel Ferguson told NZRetail.
The WMC initially leased space to Briscoe Group which brought in Rebel Sports as an anchor tenant for a 1400m² site (one of three new Rebel Sports stores opened in 2015).
Four 600m² tenancies were leased to Bed Bath & Beyond, Baby Factory, Toy World, and Anytime Fitness.
There was keen interest for a 250m² location but the club wanted to see a hospitality retailer as part of its mix and accepted the upmarket Coffee Club.
“Colliers were just brilliant in handling the leasing for our new stores,” said Ferguson. “Our bankers would have been happy with a 20 percent pre-leased position but Colliers achieved 94 percent of floor area pre-leased before our builders, Leighs Construction, began the nine-month build.”
The stores are leased in a range of $200/m² – $300/m² rentals on an average lease term of 8 years.
Across from The Hub, a Mitre 10 Mega store has been built. The former hardware site has been redeveloped as a ‘megacentre’, with leases to Harvey Norman, Number One Shoes, Bike Barn, Macpac, Pet Central, Noel Leeming, Curtain Studio, Lighting Direct, Warehouse Stationery, Kitchen Things and Repco.
This story originally appeared in NZRetail magazine issue 744 June / July 2016