Kiwi Property will be managing the property for the partnership venture. Chief executive Chris Gudgeon says the company looks forward to applying its retail management skills to the centre.
“This exciting acquisition will give our investors an ownership stake in New Zealand’s largest, single-site retail centre and aligns with our strategy of owning dominant regional shopping centres,” Gudgeon said.
The Base has a land area of 30 hectares, 183 stores and a total retail floor area of 85,256 square metres.
In the year to December 31 2015, it generated total retail sales of $262.8 million, an increase of 12 percent on the prior year.
Kiwi Property previously spent $192.5 million to acquire a 50 percent stake in the shopping centre from Waikato-Tainui in April. Settlement is due on 31 May.
At the time, Gudgeon said the The Base has future development potential, seeing as the surrounding area is expecting to account for the majority of New Zealand’s population growth over the next 20 years.
If Waikato-Tainui decides to sell its remain 50 percent stake in the future, Kiwi Property has the right to acquire it at a price determined by independent valuation between 2018 and 2021.
The deal doesn’t impact on the freehold title of the land, which remains in tribal ownership.
Rahui Papa, chairman of the tribe’s executive committee Te Arataura, previously welcomed the 50 percent sale.
“No tribal land will change hands. Waikato-Tainui ownership of the underlying land continues to be protected under Pootatau Te Wherowhero title. Kiwi Property, along with TGH will also protect unique cultural elements such as the pou [tribal markers], and bi-lingual signage,” Papa said. “At the end of the long-term lease, ownership of The Base shopping centre will return to Waikato-Tainui at no cost.”