Silverfin settles Centre Place South purchase by syndicate

Kiwi Property Group Ltd confirmed on Friday that it had settled the $46.8 million sale of Centre Place South – the former Downtown Plaza – shopping centre in Hamilton, and Silverfin Capital Ltd confirmed today that it was the buyer.

Silverfin has raised $27.6 million from wholesale investors in a fully subscribed syndicate marketed through Colliers.

Silverfin managing director Cheryl Macaulay said that once the company was licensed by the Financial Markets Authority as a fund manager it might offer some of the syndicate to retail investors, as some of the initial investors had taken larger portions. “However, they’re getting 9%/year, they might just say no to retail.”

The Centre Place Shopping Centre comprises Centre Place North & Centre Place South, which are separated by the pedestrianised Ward St. Kiwi Property owns & manages Centre Place North and will manage Centre Place South on behalf of the Silverfin syndicate.

Centre Place South has a net lettable area of 10,933m² bounded by Anglesea & Ward Sts & Worley Place. It underwent a $36 million refurbishment in 2013 and has a new Farmers department store on a 15-year lease & 25 specialty tenancies. Silverfin has projected a 9% pretax cash return for the first year.

Centre Place North has a net lettable area of 15,630m², 75 specialty tenants & 2 cinemas. Kiwi Property acquired the whole property in 3 tranches between 1994-2005.

This is Silverfin’s second syndicate and it’s doing due diligence for a third, scheduled for release in September. The first was at 21 Hobill Avenue, Wiri, in May-June, where Silverfin raised $12 million in $750,000 parcels for a $22 million purchase.