Buyer sings Auckland’s praises
Auckland has it going on, says Shore City’s new Australian owner. Catherine Harris reports.
Australian retail developer and investor Shaun Bonett has been watching Auckland for 10 years, and he likes what he sees.
His company Precision Group recently bought Shore City shopping centre in Takapuna for just over $90 million.
Bonett has an estimated wealth of A$478m, according to BRW’s Rich List, and he says he has been watching Auckland for a decade.
‘‘There’s been a number of signs that it is really focusing on creating a global city.’’
Promising signs included Auckland’s long-term vision, clear development goals, a responsible approach to social welfare and its recent membership of the C40, a worldwide group of cities dedicated to tackling climate change.
Those things resonated with his own philosophy, Bonett said.
‘‘My approach to commercial property has always been a longterm one . . . I think Auckland is an amazing city with enormous potential which will continue to significantly improve over the next 10 years.’’
Shore City is Bonett’s first New Zealand investment, and was bought from global insurer Aviva, which was winding up its global property fund.
In Australia, Precision’s track record includes successful revamps of Chevron Renaissance on the Gold Coast, Adelaide’s Central Plaza and MacArthur Central in Brisbane.
The company has good ties with Australian department store David Jones and Apple, which has its flagship Australian store at its Brisbane mall.
Bonett said Aviva had been a passive investor, but he was looking at a number of refurbishment options for Shore City, including a new fresh food offering and talks with Farmers.
Asked if David Jones might open a store at Shore City, he said he planned to get the lay of the land first. ‘‘I do think there are a number of exciting international retailers out there and there has obviously been a tremendous amount of new retailers opening in the Takapuna area, which is a very good sign for the area.
‘‘But I think the first focus of the next six months is understanding exactly the needs of our customers and the wider area.’’
Shore City has also been pegged as a potential site for additional apartments, given Takapuna’s status as a potential metropolitan centre under the draft city plan.
Apartments are already popping up on other retail sites, including the nearby Milford mall and the Warehouse’s store in Newmarket.
But Precision was not a residential developer, Bonett said.
‘‘A number of our centres have that opportunity in Australia and, to be frank, we’re loathe to seriously explore it until all the retail opportunities are properly undertaken.’’
While retail properties in New Zealand are changing hands quickly at present, Bonnet said he pretty much had his hands full, although he would not rule out another acquisition.
‘‘I’m certainly open to other opportunities, in Auckland particularly, but for the short-term the focus is very much on Shore City.’’