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Commercial properties at Pegasus township up for grabs

Thursday, 11 June 2020

A consortium of New Zealand and international investors have put several retail properties up for sale in the Pegasus township.
A consortium of New Zealand and international investors have put several retail properties up for sale in the Pegasus township.

Most of the commercial properties in the township of Pegasus, north of Christchurch, are up for grabs.

The consortium of New Zealand and international investors that bought the huge Todd Property residential development portfolio has put them on the market.

NZ Propco bought the multi-million dollar portfolio of residential and land developments late last year in a deal with the billionaire Todd family for an undisclosed amount.

The Good Home pub building is one of five commercial properties for sale in Pegasus.
The Good Home pub building is one of five commercial properties for sale in Pegasus.

NZ Propco is a New Zealand-based investment group whose shareholders include Christchurch rich lister and property investor Ben Gough, United Kingdom financial advisors Alvarium RE, and Templeton Group, one of whose directors is well-known Auckland property developer Nigel McKenna.

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Within a few months several of the properties in the portfolio were on the market, like three superlots at the Stonefields suburb in east Auckland and the Stonefields market, a shopping centre, as well as a parcel of land on Napier Hill.

The development plans for the Pegasus township started 20 years ago with an investment company Southern Capital.
The development plans for the Pegasus township started 20 years ago with an investment company Southern Capital.

Templeton Retail, owned by NZ Propco Investments, has placed the five commercial properties at Pegasus on the market. A couple are not fully tenanted.

They include a modern single level block of five retail units, with 57.2 per cent occupancy, a single level building leased to The Good Home pub, and a two-level retail and office building standing on almost three-quarters of an acre of land with 57 per cent occupancy.

Two commercial development sites, one a quarter acre on the lake front and another nearby, are also on the market.

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The deadline for offers on the five properties is Thursday, July 2, at 4pm.

Colliers International, marketing the properties, said more than 1000 families are living at Pegasus now.

Real estate agent Will Franks said the five properties could be bought individually or together. The commercial premises for sale were modern and attractive assets that a new owner could add value to through managing the leasing process.

Retail assets were not the core focus of the Templeton Group, so they were looking to sell some of their retail assets, Franks said. Their focus was more residential development.

Templeton Group's website says the group is currently developing $1 billion of residential-focused property throughout Auckland.

'We are in the process of developing our plans for Pegasus,' a spokesperson for Templeton Group said.

It did not comment on its strategies for commercial reasons, the spokesperson said.

Included in the Todd property deal were properties like the Kāpiti Coast airport and residential developments like Pegasus, Auckland's Stonefields, and the new suburb of Ormiston in the Flat Bush area, and undeveloped land in Hawke's Bay and Whangarei.

The Pegasus development has been slow to take off.

It was first started about 2000 by investment company Southern Capital whose founders included ex-Brierley executive Graeme Wong and South Island developers Phil Burmester and the late Howard Paterson.

The late Bob Robertson of Infinity Group which owned Pegasus Town Limited with Otago investors bought the development in 2004 and got the housing development underway but later Pegasus Town defaulted on a $142 million payment and went into receivership.

The Pegasus development was then sold to Todd Property for $66m in late 2012.