Ikea still searching for site for Auckland store

AUCKLAND: A year after announcing its New Zealand plans, the Swedish furniture giant Ikea has looked at several sites around Auckland, local property experts say.

One local property owner said the business had showed an interest in a vast, flat site in a rapidly expanding area with motorway access, near the CBD.

An Auckland real estate investor said he knew Ikea had looked at a Mount Wellington site just off the Southern Motorway, across from New Zealand’s biggest shopping centre, Sylvia Park.

However, Ikea would not respond to the speculation, confirming only that it was still looking into opportunities since announcing its intention to launch in New Zealand on January 11 last year.

‘‘We are currently exploring opportunities in New Zealand and look forward to sharing more information when it’s available,’’ a spokesperson said.

The Auckland investor said this month: ‘‘In terms of Ikea, since their announcement last year, very little appears to have occurred. I have heard that they missed out on the Turners site adjacent the Mount Wellington offramps and we continue to get indications they wish to be south of the city centre.’’

On September 12 last year, T&G Global Ltd — formerly Turners and Growers — said it was selling and leasing back its Mount Wellington site ‘‘as the company mobilises for significant growth’’.

‘‘The 5.8ha Mount Wellington site is being sold to Goodman Property Trust for $65 million as part of the company’s strategy to redirect capital to support the future growth of the Kiwibased business, which has offices in 13 countries,’’ the business said.

The site is located in the heart of Mount Wellington, bounded by the Southern Motorway, and zoned light industry, offering a prime location and investment opportunity for Goodman Property Trust, another NZX listed entity.

T&G is one of the largest fresh produce companies in New Zealand and one of the largest exporters of apples to the world.

The exporter said it planned to lease back the site up to four years while it looked at options for the future including developing a fitforpurpose facility where it could better service the needs of customers and growers.

The New Zealand Herald has previously reported on possible locations for Ikea in Auckland: either Westgate at Massey, partly due to Costco opening there but also due to its large land supply, or Drury in South Auckland where Kiwi Property has big development plans.

First Retail Group managing director Chris Wilkinson said South Auckland was just as likely as Westgate.

‘‘We think Ikea will be at Drury, to give Kiwi Property the anchor to differentiate it and because of the connections to the Waikato and Bay of Plenty.’’

Kiwi Property chief executive

Clive Mackenzie would not comment on Ikea coming to one of his sites, simply saying: ‘‘We talk to everyone in the market all the time’’.

Campbell Barbour of NZ Retail Property Group, which owns Westgate, said land there would be ideal for such a big store.

‘‘The site is a great location because it’s got motorway connections and it’s a new metropolitan town centre for Auckland so getting largescale international activities here like that is an important part of what we’re doing, rather than putting them in more standalone locations where they are not supported by public transport, infrastructure, other retail activities and services,’’ Mr Barbour said.

On January 11 last year, Ikea boss Jesper Brodin and market leader Will Edwards announced that Kiwis would get the ‘‘full Ikea experience’’.

A megastore with 7000 products and a restaurant was planned for Auckland, though they did not specify where or when it would be built.

Ikea would also launch an online shop and had plans for another store outside Auckland.

It did say Kiwis would have to wait years for that store to be built. In the meantime, it would bring a popup shop to give ‘‘consumers a taste of what’s to come’’.

The flagship store would be located in Auckland but Mr Brodin said the whole nation would be able to access the products through online delivery. — The New Zealand Herald