Shopping mall property syndication sells out

A proportional property ownership scheme in the heart of the CBD Tauranga has sold out – with 103 portions being bought out at a cost of $75,000 each.

The well-known Goddard Centre has 22 tenancies - including such big name tenants as Life Pharmacy, Moochi, Rialto Cinemas, Caci Clinic, Esquires, and Glassons.

The offering was made available to the public four months ago. Bayleys sales consultant Robert Pinny who managed the syndication sell-down, said the vast majority of unit buyers were small investors who had purchased single or dual portions.

“Buyers predominantly came from the central North Island – from Auckland, the Waikato, Coromandel, the Bay of Plenty, and Taranaki. Further a-field, there was take up from Oamaru and Timaru in the South Island,” Mr Pinny said.

“General comments coming from buyers were that they were attracted to the Goddard Centre offering because of its strong tenant occupancy portfolio in a prime downtown Tauranga location, the continued growth of the Tauranga region and the attractive rate of return at a time when bank deposit rates are floating around four percent.”

An initial yield of 9.5 percent is forecast for the first 12 months of the Goddard proportional ownership scheme.

The Goddard Centre was developed in 1992 and has been extensively refurbished in 2004, and again in 2008. Pinny says the property was owned by the NZX-listed National Property Trust.
The Goddard Centre has several well-established tenants with long term leases, including:

• Glassons Ltd - New Zealand’s most visited fashion store with 135 stores in New Zealand and Australia.
• Moochi - a boutique fashion label designed in New Zealand.
• Goddards Coffee Ltd/ Esquires - a thriving café brand with 35 stores in New Zealand.
• Rialto Tauranga - three boutique cinema screens offering a selection of quality films for a wide audience
• Step Inn Shoes - located in the Goddard Centre for the last 16 years offering a quality selection of footwear

The successful sell down of the Goddard Centre as a proportionate ownership scheme completes a noteworthy run of syndications for Bayleys this year – such as KCL Property’s syndication of the Billabong head office in Albany, Auckland, and the Augusta Funds Management syndication of 510 Mt Wellington Highway also in Auckland.