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HomeNEWSAuckland residents moving south boosts retail in Hamilton and Tauranga

Auckland residents moving south boosts retail in Hamilton and Tauranga

A rise in new developments in Hamilton is giving its commercial sector a boost.

Tainui Group Holdings has placed a leasehold interest of up to 50 percent on The Base.

The Base incorporates large format retail, Te Awa Mall and 7.67 additional hectares of vacant land, making it the largest single shopping site in New Zealand.

The shopping complex itself takes up 31 hectares, including 83,500 square metres of net lettable area, over 190 tenancies and more than 3000 car parks.

The move to sell a stake in The Base will free up a fair bit of cash for Tainui Group Holdings, which it plans to use to reduce debt and reinvest in other areas, including jobs and land.

Over at Westfield Chartwell, owner Scentre Group recently entered into an agreement to sell the property alongside Wellington’s Westfield Queensgate to Diversified NZ Property Fund Limited for $445 million.

Diversified NZ Property Fund is managed by Stride, the operators of the recently opened NorthWest shopping centre.

The purchase is subject to the approval of the Overseas Investment Office, as a large number of investors in Diversified are based in Australia.

The deal is expected to be finalised in the first half of 2016.

The city’s other main shopping centre, Centre Place South, is on the market for sale. It was placed there by its owner, Kiwi Property Group.

There are also plans underway for a new retail and mixed use development on the Cambridge lakefront.

Developers Trig Group will start on the site in early 2016, with completion estimated for mid to late 2017.

Retail building consents in the Waikato region in 2015 hit 40,804 square metres, almost doubling from 23,277 in 2014.

Source: Bayleys Marketbeat report

In Tauranga, industrial property growth is being spurred on by booming kiwifruit exports.

Industrial building consents in the Bay of Plenty region have doubled over the past year to September 2015.

Farmers Trading Company is also investing in Bay of Plenty’s growing property market.

The company has purchased the 6000 square metre building it has tenanted for 40 years at 119 Devonport Rd for $13.3 million.

The building is one of the largest in Tauranga’s CBD and was put up for sale by the trustees of the Parnwell Trust Partnership in July 2015.

Meanwhile, retail space at Mount Maunganui is all booked out.

Mount Maunganui Mainstreet manager Peter Melgren told Bay of Plenty Times in December that there’s a waiting list of people “that would love to get in here” on the main street.

He said he was aware of at least three developments in the pipeline for 2016.

Bayleys Tauranga residential and commercial branch manager Dickie Durman said to the newspaper that any property that came on to the market on the main strip was “hotly contested”.

Retail building consents in the wider Bay of Plenty hit 35,252 square metres in 2015, up from 10,538 square metres in 2014.

Source: Bayleys Marketbeat report

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