The freehold property occupies numbers 66 to 80 on Broadway, Newmarket’s main retail strip, and 11 to 15 Railway St.
Currently, there is 8330 square metres of retail space across two buildings and 2100 square metres of office space, as well as car parking. Some of TWG’s brands and stores like The Baby Factory are already tenants in the space.
However, TWG has plans 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 total floor area will be 47,914 square metres.
The site up for sale. Photo / Google maps
The Warehouse, Warehouse Stationery and Noel Leeming have already committed to almost 8000 square metres of the retail space.
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.
Colliers International’s capital markets national director Peter Herdson says he expects the site will be highly sought after.
“Retail shops which are expected to include a supermarket will also be supported by both the guests and immediate residents within the complex and nearby residential catchments, as well as those in neighbouring suburbs such as Parnell, Remuera, Grafton, Epsom and Mt Eden, all of which are some of the most affluent suburbs in the country.”
Auckland Council has already granted resource content for the development.
The site is currently zoned as “Mixed Use” under the Auckland City District Plan Isthmus Section and under the future Proposed Auckland Unitary Plan.
“Mixed Use” zones encourage urban areas being redeveloped to allow space for a mix of different activities, like offices, stores, entertainment facilities, restaurants, cafes and apartments.
Why Newmarket is the right suburb
Herdson says Auckland Council is promoting work, living and entertainment areas to be in close proximity of one another in order to reduce city traffic.
Newmarket already has the transport in place to support more people living there, he says, considering its buses and its 368 trains that carry 21,800 people over the crossing every weekday.
He also noted its close promixity to Auckland’s CBD. Meanwhile, residents and workers are flocking to the suburb.
Newmarket Business Association figures show there are over 15,000 employees working in the area, as well as double-digit resident population growth year-on-year.
Large corporates such as Griffins, Scentre Group and Vector have their main offices located in Newmarket, as well as international retail brands, Herdson says.
“Well-known national and international brands have selected Newmarket as the base for their flagship stores, including the likes of fashion retailers Witchery, Country Road, French Connection, Stolen Girlfriends Club and Adidas, and large Australian brands have their only New Zealand store in the precinct, including Alannah Hill, Gorman and Nicola Waite.”
Scentre Group also recently announced it would be undertaking a $500 million revamp of three of its Auckland malls, including Newmarket’s 277 Westfield mall.
Herdson and Colliers International director of capital markets John Green are marketing the site for sale. International expressions of interest close 12 May, unless sold previously by negotiation.
The Warehouse Group has a market capitalisation of around $970 million and a recently-released group sales result of $1.560 billion for the first half of 2016.