Junc­tion hopeful in re­ceiver­ship

Kapi-Mana News - - OPINION / NEWS -

Blighted from the be­gin­ning, the un­suc­cess­ful 9000 square me­tre Tawa Junc­tion bulk re­tail cen­tre has fi­nally found its way to a re­ceiver­ship sale.

Orig­i­nally opened on the 2.7 hectare site in Sur­rey St, at the north­ern end of Tawa in 1989, the re­gion’s fore­run­ner to ‘‘ mega cen­tres’’ or ‘‘ su­per cen­tres’’ im­me­di­ately at­tracted ten­ants such as Lewis’s, Cargo King, The Ware­house and oth­ers. But it strug­gled from day one hav­ing failed to gain plan­ning ap­proval for a su­per­mar­ket which the de­vel­op­ers al­ways saw as crit­i­cal to the cen­tre’s suc­cess. Lewis’s were the last to leave the lo­ca­tion three years ago.

As it has passed through var­i­ous own­ers over more than 20 years var­i­ous ac­tiv­i­ties have been tried, in­clud­ing a rein­vig­o­ra­tion of a large part of the com­plex as a Build­ing De­pot out­let. That ceased when the par­ent com­pany of The Build­ing De­pot was placed in re­ceiver­ship.

Since then van­dals and graf­fiti artists have dom­i­nated the prop­erty. There is one ten­ant oc­cu­py­ing about 2000 square me­tres but their lease ex­pires in 2012.

Col­liers In­ter­na­tional bro­ker Chris Gollins has the task of mar­ket­ing the prop­erty by ten­der on be­half of the re­ceivers of Eq­ui­table Mort­gages Lim­ited. De­spite its his­tory, he is pos­i­tive about the prop­erty’s fu­ture.

‘‘ Welling­ton City Coun­cil’s re­cent Plan Change 73 now fi­nally ex­tin­guishes any pos­si­bil­ity of a su­per­mar­ket, or re­tail ac­tiv­ity of less than 1500m2 on the site, forc­ing po­ten­tial pur­chasers to see value in al­ter­na­tive uses,’’ says Mr Gollins.

‘‘The last ‘ owner’ as such was Hunt Group, owned by the late Peter Hunt who made two suc­cess­ful Re­source Con­sent ap­pli­ca­tions for very ex­ten­sive rest home, hos­pi­tal and re­tire­ment vil­lage con­cepts. Two rep­utable valuers sep­a­rately val­ued the land at more than $15 mil­lion for those pur­poses. Eq­ui­table be­came mort­gagee in pos­ses­sion af­ter Peter’s death in 2009.’’

The present rate­able value is $7.4 mil­lion.

Mr Gollins says time has worked for the re­ceivers, with the Welling­ton re­gion in­creas­ingly find­ing it­self short of such large, flat land ar­eas.

‘‘ Es­pe­cially one with such a large, very func­tional build­ing that of­fers po­ten­tial for a vast num­ber of uses. And in terms of staff get­ting to the site it has the ben­e­fit of Tawa sta­tion less than 100m away. I have ab­so­lutely no doubt we will achieve a sat­is­fac­tory out­come for the re­ceivers.’’

Ten­ders close on July 28.

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