Auckland’s retail expansion continues apace.
AMP Capital is the latest to announce new development plans, with a $78 million expansion of Botany Town Centre, one of the city’s largest regional shopping centres.
This comes hard on the heels of Scentre Group starting a $790 million redevelopment of Westfield Newmarket.
AMP’s development will include the introduction of international and national retailers; an additional mix of specialty retailers, a comprehensive refurbishment of Garden Lane, a refresh of the fresh food precinct adjoining the New World supermarket and an expansion of the alfresco dining.
This is in addition to work in the existing entertainment precinct, which includes Hoyts undertaking a major upgrade of more than 1000 powered recliner cinema seats and updates to the Hoyts lux premium cinema.
AMP Capital portfolio manager Nick Cobham says the development will be a significant retail, leisure and entertainment expansion in one of Auckland’s fastest-growing and most populous areas.
Work will start his month and will be finished in March next year.
Botany Town Centre is owned by PSPIB/CPPIB Waiheke Inc. Last year, CPPIB (Canada Pension Plan Investment Board) acquired a 50% interest PSPIB/CPPIB Waiheke Inc and its $1.2 billion New Zealand property portfolio.
An artist's impression of the market square at Botany Town Centre's extension.
CPPIB joined existing Canadian pension investment manager Public Sector Pension Investment Board (PSPIB) in the diversified 13-asset portfolio spanning the office and retail sectors. The transaction was given regulatory approval by the Overseas Investment Office in December.
PSPIB/CPPIB Waiheke is managed by AMP Capital Investors.
“Botany Town Centre has always been the hub of the Botany community and will remain close to its roots in both design and spirit – just in a bigger, better and even more inviting format,” Mr Cobham says.
Mr Cobham says the centre’s historical success, the growth of the surrounding suburbs and the demand for ever more sophisticated, globally focused retail, food and entertainment means investing in the centre is a must.
“Investors certainly see the value in further investment to ensure Botany continues to meet the shopping and entertainment demands of a thriving local population.”
Botany Town Centre opened in 2001. It is Auckland’s second-largest shopping centre by lettable area. The expansion will bring Botany’s gross lettable area to more than 62,700sq m, with more than 200 retailers in an open shopping centre.
The development is being undertaken by AMP Capital Shopping Centres, AMP Capital’s specialist retail division, which has more than $A10 billion in assets under management.
The new pavilions area at the extended Botany Town Centre.
The 300- strong team manages a portfolio of 30 shopping centres in Australia and New Zealand including Botany Town Centre and Manukau Supa Centa in Auckland, Bayfair Shopping Centre in Tauranga, and The Palms in Christchurch.
AMP Capital Shopping Centres development manager, Paul Hudson says the investment in this development represents a significant measure of confidence in the centre.
The expansion follows the Auckland Council Unitary Plan’s designation of Botany Town Centre as a metropolitan zoned hub. Several special housing areas and future residential growth areas have been identified surrounding the centre and have been fast-tracked for development.
Naylor Love Construction has been appointed as the main contractor for the project.
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