Henderson still building

Princes Wharf developer David Henderson is planning two large apartment blocks of about 160 units to create a "gateway" to Auckland's CBD.

Plans are to demolish the Victoria Park Markets carpark building on the corner of Victoria and Cook Streets, and the Kathmandu building on the adjacent corner at 200 Victoria St West, to make way for the two apartment blocks.

Henderson, who bought the markets last February for $14.1 million, said his proposals were going through Auckland City's urban design panel, but he hoped to create a $120 million asset and an entranceway to the CBD from the Victoria Park precinct.

Just how much will be spent on the blocks depends on, among other things, how deep Kitchener Group digs to create carparks for the residents and shoppers. But Henderson says the blocks will be low-rise and units will be between 55sq m and 100sq m.

He is hoping to transform the markets into a food and fashion precinct, citing a lack of shops for the residents of the new Beaumont Quarter and Lighter Quay projects nearby. A dearth of shops for Vodafone and Air New Zealand staff, about to shift to new corporate headquarters a block away on Fanshawe St, added further impetus to his plans.

Henderson wants to expand the number of shops at the Victoria/Drake St end of the market.

He estimated that he had projects worth $800 million under way, and said he was pulling equity out of the wharf to plough into the markets and associated apartments.

He said Sydney residents were the most active Kitchener apartment investors, taking over from Koreans, Japanese and Chinese who were finding prices too high because of the strengthening kiwi dollar.

Henderson criticised shoebox-sized apartments, questioning the psychological effect of living in a unit less than 20sq m, contrasting them with Hilton rooms, at 40sq m.

"I can see in years to come those buildings being revamped into larger apartments," he said of the many towers of high-rise units under construction in the CBD.

Elsewhere in Auckland, Kitchener had struck a settlement with the Catholic church over a proposed 272-unit 38-level apartment tower on the edge of St Patrick's Square on the corner of Albert and Swanson Streets.

Design changes were being made to the tower at 35 Albert St. The church had initially objected to the plans, citing shadowing and possible damage to St Patrick's Cathedral from the impact of excavation and building work.

At Albany, most of Kitchener's Interplex subdivision had been sold, and work had begun on the Precinct apartment block on Lorne St in central Auckland.