Why spend your money shopping at the mall when you could buy the mall itself for a measly $80 million?
Former Shortland Street actor and musician turned real estate mogul Paul Reid has put Dunedin’s Meridian Mall back on the market after buying it in July 2021.
Mr Reid said he was selling the mall because he was an "add-value investor".
"We tend to identify properties that we can improve and then sell for a profit so it’s just always a part of our strategy to [sell] once we’ve fixed the building up."
Mr Reid said during his ownership of the mall, his Icon Group had filled in about 5000sq m of vacant space left over by Kmart and H&J Smith.
He said he spent a significant amount of money preparing the space for the new tenants which included giving it seismic upgrades.
Mr Reid said the Mall still had a lot for potential for growth because brands like Mecca and H&M were looking to buy space in Dunedin.
"There’s no-one building any other malls to compete and it’s got such a prime location in the CBD with 550 carparks.
"We’ve de-risked it for the next person and ... [are] offering them a more stabilised investment."
In 2019, The New Zealand Herald reported Mr Reid flipped more properties than any other investor during the six years to 2018.
At the time it was reported Mr Reid had closed at least 130 trades.
Mr Reid sold his properties - with or without renovation - usually within six months.
Mr Reid’s investment company, The Icon Group, was set up in 2009.
By 2012 the Icon Group had grown so much it was placed 13th in the Deloitte Fast 50 awards.
The Icon Group had 10 commercial properties in its portfolio.
Mall sales agent Richard Kirke, of Colliers, said it was reasonable for Mr Reid to expect about $80m for the mall because it had an $8m return when fully leased, representing a 10% yield.
