The Warehouse Group sells property for $65 million

  • News
  • April 18, 2017
  • The Register team
The Warehouse Group sells property for $65 million

The Warehouse Group has announced the final sale of its Newmarket location in an unconditional contract that is due to be completed in July of this year. 

The group has been setting plans for its new location for a while and now has taken the next step by selling its property for $65 million. The proceeds will be used to reduce debt before the move.

Settlement of the sale is expected to be completed in July this year and the sale proceeds will generate a pre-tax gain of approximately $12 million.

In April, last year, Warehouse Group revealed its plans for a huge mix-use site which will also be based in Newmarket.

The plan is for a mixed-use development that will house another 18,245 square metres of retail space, 9165 square metres of office space, a 160-unit apartment complex, a 40-room hotel and 720 carparks.

The expected size of the new Broadway address is to be about 47,914 square metres.

General manager of property for The Warehouse, Fiona Shilton, says the company bought the site strategically to secure a long-term footprint in the area.

“Mixed-use is a very new approach to development in New Zealand and we’re looking for additional expertise to support us in our endeavour to provide a quality space that supports living, working and play for the community,” Shilton says.

She says given the site’s location in the fashion capital of New Zealand, as well as Newmarket’s low-vacancy rates, it could be the best mixed-use development the country will see this year.

The current site will continue to be leased and operated by Warehouse until it is to be vacated in October 2018.

In March, Warehouse posted a 76 percent drop in first-half profit to $13.6 million.

The retailer is on a cost-cutting drive, cutting a net 130 jobs at its store support offices in Auckland and some regional centres.

The shares last traded at $2.22 and have dropped 22 percent so far this year.

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Tauranga’s Bayfair Shopping Centre plans a $100 million expansion

  • Property
  • October 13, 2017
  • Sarah Dunn
Tauranga’s Bayfair Shopping Centre plans a $100 million expansion

Tauranga’s population is booming, and so is its attractiveness as a shopping destination. The Bay of Plenty city’s Bayfair Shopping Centre is investing in this future with a new $100 million expansion which will add around 50 specialty stores; a dining precinct; a new Countdown supermarket and a seven-screen cinema complex.

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Countdown appoints new GM merchandise

  • Who's Where
  • October 12, 2017
  • Sarah Dunn
Countdown appoints new GM merchandise

Countdown has appointed Scott Davidson to the role of general manager merchandise. Davidson comes from a role as head of produce for Australian company Woolworths, of which Countdown owner Progressive Enterprises is a subsidiary.

Read more
 
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Hannahs and Number One Shoes change hands again

  • News
  • October 12, 2017
  • Sarah Dunn
Hannahs and Number One Shoes change hands again

Australian automotive parts company Bapcor has signed sale agreements for its New Zealand Footwear division, comprising Kiwi footwear chains Hannahs and Number One Shoes. The sale comes less than a year after Bapcor acquired the chains’ former owner, Hellaby Holdings, for $352 million.

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