Developers quit retail portfolio
Two North Island property developers are cashing up a portfolio of four big-box retail premises with a combined capital value of $16.58 million in Hastings. It’s billed as the biggest property portfolio sale for many years in the district.
Developers Warren Ladbrook and Gordon Johnstone own the four commercial properties in The Park Mega Centre in Hastings through their company Caboo Properties.
‘‘We are looking to exit [the investment],’’ Ladbrook said.
The mega centre has been a controversial development, having involved a public referendum because it was feared it would gut retail in the Hastings city centre. It is only 500 metres north from there.
The four properties comprise half the eight stores in the mega centre, though they take up about a quarter of the land area.
The developers three years ago wanted to develop smaller stores in the mega centre but abandoned their plans after opposition from the Hastings District Council and city retailers.
Ladbrook called the restriction in the district plan to requiring large-format retail to be at least
1000 square metres at the mega centre ‘‘prehistoric’’.
The four properties generate an annual net revenue of $1.36m, according to Bayleys, which is marketing the properties.
Ladbrook said the the failure to secure consent for the smaller retail developments in 2015 played ‘‘zero’’ part in their decision to sell their mega centre portfolio.
‘‘It’s just a private matter. We are selling a few things and buying a few things. It’s just business as usual.’’
Tenants of the four properties are The Clearance Shed, Briscoes and Rebel Sport, Petstock and Noel Leeming.