Retail site set to take off
Individual properties available include Mitre 10 Mega, PlaceMakers and a building housing New World, Repco and Smiths City
A sprawling Kapiti Coast retail precinct is for sale, providing an opportunity for investors and developers to take part in the transformation of one of New Zealand’s fastest-growing areas.
Kapiti Landing retail is in Paraparaumu, at the heart of the Kapiti Coast and gateway to the Kapiti region.
Six freehold buildings containing 11 tenancies, as well as three future retail development sites, are now available for sale either individually or collectively.
Individual properties available include a stand-alone Mitre 10 Mega, a PlaceMakers, plus a building accommodating New World, Repco, Kitchen Things and Smiths City, and a ground lease on a Caltex petrol station.
The Kapiti area is poised for sustained growth, driven by substantial public investment in major infrastructure projects, as well as significant private sector development.
Templeton Group has appointed Colliers International to market the offering by way of expressions of interest, closing at 4pm on Wednesday, April 1.
Jason Seymour, capital markets director at Colliers, says the vendor is offering significant flexibility to purchasers.
“Kapiti Landing’s retail properties are for sale in two stages, allowing buyers to express interest in either or both.
“Stage One comprises six freehold buildings containing 11 tenancies. These are available individually, collectively or in combination.
“Stage Two comprises three vacant future development parcels. Buyers can either purchase the future retail premises upon completion by the vendor, or partner with the vendor to deliver and then purchase the completed retail developments.
“A range of partnership options could be considered, including a structured joint venture or a development agreement. No matter which investment or development option you pursue, this is an outstanding opportunity to make your mark in an area set for further significant growth.”
Seymour says Kapiti Landing is a comprehensive retail and commercial precinct which is easily accessible to the surrounding communities of Waikanae, Paekakariki, Pukerua Bay and Otaki. First opened in 2011, the Ka¯piti Landing retail centre is the focal point for the wider precinct. It boasts modern, quality improvements with efficient layouts, and has been designed to allow further retail development to complement the existing improvements.
Rentals range from just over $87,000 in net annual rent for the smallest retail property, up to almost $1.43m for the largest, which includes the New World supermarket and three other tenants.
Several high-profile tenants are already in discussion with the vendor regarding new development options in stage two, providing plenty of scope for future growth.
The retail properties are near the interchange of Kapiti Rd and the recently completed first stage of the Ka¯piti Expressway.
Peter Herdson, national director of capital markets at Colliers, says the Mackays Crossing to Peka Peka stretch of the expressway has benefited the retail offerings considerably.
“High volumes of traffic on State
“Kapiti continues to enjoy strong economic, employment and population growth. It’s an attractive location due to its relaxed coastal lifestyle and proximity to Wellington.”
Highway the 1 site, have making now shifted Kapiti west Landing’s towards retailers significantly more accessible and visible.
“The Transmission Gully motorway project will further benefit the site by cutting the travel time from Wellington, some 52km to the south. This is expected to greatly grow the surrounding retail catchment.”
Richard Findlay, managing director of Colliers Wellington, says Transmission Gully will be a game-changer for Ka¯piti. “The $1bn project will create a new 27km, four-lane motorway from Mackays to Linden.
“Due for completion in December, it will be one of the most significant new roads in the lower North Island and will dramatically increase regional connectivity.”
Findlay says the $979m Ka¯piti Expressway will also benefit the area greatly. “An 18km section has already been completed between Mackays and Peka Peka, while a second 18km section is underway between Peka Peka and Otaki.”
Dean Anderson, associate director of Colliers Ka¯piti, says the district is among the fastest growing in New Zealand. “Kapiti continues to enjoy strong economic, employment and population growth.
“It’s an attractive location due to its relaxed coastal lifestyle and proximity to Wellington, with almost one in 10 locals commuting to the capital every workday.
“With the completion of current infrastructure projects, the number of people wanting to live in Ka¯piti and commute to Wellington is likely to increase significantly.
“As a result, Kapiti's overall population of 56,000 is projected to grow by some 30 per cent by 2047. To accommodate this growth, the district will require up to 6700 new dwellings.
“All of this growth is driving demand for property. Scarce supply and increasing sales values support further development. With its prime location and relative abundance of developable land, Kapiti Landing is well placed to benefit from this growth.”