Christchurch's South City Shopping Centre sold in biggest property deal of the year

Friday, 4 May 2018

South City Shopping Centre in central Christchurch has a new owner.

One of the biggest property deals of the year has ushered in new ownership and management for Christchurch's South City Shopping Centre, and the possibility of redevelopment.

Wealthy property investor John Butterfield has sold the shopping centre to Terrence Stirling for about $50 million.

Nick Doig, of Colliers International in Christchurch.

Butterfield bought the centre for $34m in 2010 and said the investment had been good to him.

The centre has been in the news recently because police have been called over fights and drunken behaviour in the car park.

South City Shopping Centre looking north towards the central city. On the left is a New World supermarket development under construction, and in the foreground on the right is Rebel Sport.

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Nick Doig, of Colliers International in Christchurch, said the centre was under new management by the property management division of his firm, which would address problems of people pre-loading before attending local bars.

The centre enjoyed renewed popularity after the 2011 earthquakes when the city was closed, although anchor tenant New World recently announced it was leaving to develop a property spanning a block to the west across Durham St.

Butterfield is in his early 70s and reportedly has a fortune of about $80m. He would not be drawn on what he was doing with his profit.

Speaking from one of his boats in the Marlborough Sounds where he has a holiday home, he was looking forward to flying his new helicopter, which is one of his passions.

Butterfield spends much of his time at his home in Fiji but also has houses in Christchurch as well as hospitality investments including the Racecourse Hotel.

He began his early career as a builder in east Christchurch, and later built his fortune in the hospitality business and property investment – he still owns the Colombo St block of land where Smiths City trades.

South City's buyer, Stirling, lives on a farm at Milton near Balclutha.

He said he had flu and did not want to talk this week, feigning surprise when asked what he would do about New World's departure from South City.

Stirling owns other large properties in the Moorhouse Ave area including the Rebel Sport property, and other land he owned was recently sold to Foodstuffs for the New World.

Doig, son of Colliers' Christchurch owner Hamish Doig, said the sale was private and he had approached interested buyers including Stirling.

The general area had been boosted with the 'rebirth of Welles St' hospitality outlets and the Fletcher Living apartments, which are nearing completion, providing new customers for nearby outlets.

Doig said he would seek tenants for when New World vacates its tenancy in about 18 months and, depending on the new lessee, there may be an opportunity for redevelopment.

He said the food hall, which operated around the clock, had proved a star performer for the centre.