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Otaika Centre to be auctioned after death of owner
Apopular shopping centre in Northland is on the market but long-term business owners have no intention of leaving when a new landlord takes over.
Otaika Shopping Centre, beside State Highway One on the southern entrance to Whanga¯rei, will be sold by auction next month through Bayleys Whanga¯rei after the death of the building owner.
Whoever wins the auction will buy the entire building that consists of eight businesses, including the Otaika Four Square, Aussie Butcher, Liquorland, a pharmacy and Lotto and Post Shop.
Most of the retailers have 10-year leases that expire in 2027.
The new owners will have to honour the existing leases unless businesses decide to opt out.
Otaika Lotto and Post owner Martin Kimber has been in business from the location on and off for about 16 years and said his customers had been “awesome”.
“This was a post office run by the Government until I bought it in 1991 and I was one of two people in the country to franchise as a KiwiBank. I sold the business in 1999 or 2000 but came back in 2012 and have been here since.
“Unlike other areas, this shopping centre serves some of the poorest communities and we’ve got a lot of services being offered that the community supports big time.”
Kimber said apart from Otaika customers, his business attracted customers from other areas including those from Waipu, Ruakaka, Waiotira and Mangapai.
His lease runs until 2027. Otaika Dairy also has a 10-year lease that runs until 2027 and owner Hetal Patel said the continuity of his business depended on having adequate staff which became problematic at times.
However, he had no intention of moving as the location is ideal and he had many loyal customers.
The pharmacy has doubled in size since it began operating since 1983 and now has 16 staff.
“The customers have been amazing, some going back three generations. The population has been changing and there’s been a lot more new people coming in,” said a long-serving staffer.
Built in the 1960s and expanded in the 1970s, the entire building is located on 2799sq m of freehold land zoned Business 3 for suburban retail use.
It has a rating value of $2.4 million.