A high-performing retail asset in the heart of North Otago’s key service centre, anchored by a lease to one of New Zealand’s most recognisable brands, offers buyers an opportunity to acquire a blue-chip investment in the proven large-format retail sector.

Bayleys Canterbury commercial, industrial and development sales and leasing broker Jeremy Speight is marketing the 6,717sqm (more or less) freehold site at 27 Eden Street, Oamaru, for sale by deadline, closing at 4:00 pm on Thursday, 3rd July 2025 (unless sold prior), alongside colleague Jesse Paenga.

Comprising a substantial landholding and an expansive 3,528sqm (more or less) purpose-built retail premises, the asset is fully leased to The Warehouse – a nationally recognised retailer with a longstanding presence in the region.

Speight says the property represents a strategic investment opportunity supported by a nationally significant occupier and a strong regional economy.

“The Warehouse has an established presence in Oamaru, and the property’s proximity to a major supermarket adds further weight to its long-term locational advantage.”

The property currently returns $418,599 pa plus GST and outgoings. A variation to the lease, proposed by the tenant and currently subject to formal tenant approval, would extend the tenancy through to September 2032, with three additional renewal rights.

Speight says investor appetite for well-located, tenanted commercial assets in proven regional centres has remained resilient, particularly where strong occupier fundamentals and national brand tenants underpin income stability.

“In today’s climate, many investors are rebalancing their portfolios to prioritise low-volatility, income-producing assets, and the regional retail sector continues to outperform expectations.

“Retailers, including The Warehouse, which have strategically positioned themselves in key service towns, can leverage loyal catchments to provide essential goods across wide trade areas.”

Oamaru is the principal service centre for North Otago, drawing on the large rural and residential catchment between Timaru and Dunedin. The town’s economy is anchored in agriculture, tourism and manufacturing, while its reputation as a cultural and heritage destination continues to grow.

Bayleys South Island and Capital Markets director Jesse Paenga says the property’s zoning further enhances long-term flexibility.

“The operative zoning is Business Mixed-Use, which allows for a range of commercial and complementary activities. There is an active proposal to rezone the immediate area to Large Format Retail – which would further align with the site’s existing use, supporting future adaptability.”

Paenga adds that investor interest is growing in quality regional centres, including Oamaru, as higher yields, lower competition, and quality tenant presence attract both private and institutional buyers.

“As we continue to see compressed supply in main centres, and rising costs associated with new builds, tenanted regional stock such as the subject property represents compelling value.

“This is a nationally recognised tenant in a strategic regional location – a rare combination in today’s market, and one that positions the asset as a prime addition to any diversified investment portfolio.”