DNZ Property Group’s retail arm, Diversified NZ Property Fund, is starting works on a $9 million retail building at its Remarkables Park Town Centre.
Four tenants have already signed up for six of the new retail spaces in the 1,400sq m building including Whitcoulls and the Coffee Club.
But DNZ was keeping quiet about the amount rent the new building will bring in for its suffering investors.
“Due to commercial sensitivity I am unable to comment on the projected income,” DNZ general manager of marketing Simon Curtis said.
The company signed up to buy Remarkables Park Town Centre retail assets from original developer Porter Group for about $100 million in 2007,
At that time, the town centre was seen as a development that would service nearby projects which then looked promising – Kawarau Falls Station, Jacks Point and Kelvin Heights. During 2008 and 2009, such optimism was crushed.
Kawarau Falls Station fell over and while works on a hotel and supermarket continue, details of the site’s future are unclear.
Kelvin Heights (with an 18 hole golf course) seemed less affected, with homes there of varying prestige now reselling for between $600,000 and $1.5 million.
Jack’s Point stalled but was bought in September by Singaporean investors – good news for DNZ.
“DNZ’s [development] decision comes close on the heels of other significant land development announcements confirming that Remarkables Park Town Centre continues to be the premier shopping and services destination in Queenstown Lakes District,” DNZ retail general manager Roy Stansfield said.
Remarkables Park Town Centre now has 24 stores in a 20,000sq m retail area that includes food outlets, with 700 car parks. Existing tenants include The Warehouse, New World supermarket, Smiths City and Noel Leeming.
When it purchased the retail interest at the town centre, DNZ said it was aiming to add five new buildings to the complex. This is the first new building it has added but consent is being sought for further expansion.
In October Porter Group, which owns the Remarkables Park Town Centre total 150ha land, announced subdivision resource consent applications that would double the retail and commercial buildings at the centre.
Aside from DNZ’s 1400sq m retail addition now under way, Porter Group is seeking consent for another 26,000sq m to be developed in to shopping and dining facilities with 900 more car parks and a children’s playground.
Earlier this month DNZ announced it had sold an Auckland property for more than $19 million.
Jazial Crossley
Wed, 11 Jul 2018