The planned new building on what is now an Onehunga car park. Photo / Lendlease
The planned new building on what is now an Onehunga car park. Photo / Lendlease
Australians who wanted to sell Auckland and Christchurch malls worth around $300 million earlier this year now plan to expand the northern one by developing neighbouring land just bought from under-fire Eke Panuku Development Auckland.
The Barangaroo-headquartered owners of retail outlet centre Dress Smart are planning a bigger Onehunga centrethat seven months ago they wanted to quit.
Matt Bowyer, Lendlease Investment Management retail and logistics head, said a new 7060sq m building was planned for an outdoor area between the centre and Onehunga Mall.
The site, bought from the Auckland Council-controlled organisation, is an asphalted area now used as a carpark at 3 Paynes Lane and 45 Waller St.
A three-level retail project is planned. New shops, food and beverage and further car parking will be built.
Today's expansion announcement is a turnaround on the Lendlease statements in February, saying it was trying to sell Auckland and Christchurch Dress Smarts in a deal expected to be worth around $300m.
Inside the Onehunga centre, which is being expanded. Photo / Supplied
Bowyer said today: "Plans for the expansion have been considered for some time and entering into a development agreement with Eke Panuku is a key step in realising the centre's full potential. We did test market interest but have chosen to remain invested in the asset and are focused on evolving it to meet the needs of our customers.
"We now have an opportunity for the centre to grow and build on the success it's had over the years and to meet expansion demand from both existing and new retailers," he said.
Richard Kirke, Colliers' international sales director in Auckland, said in February that considerable overseas interest was shown in the Dress Smarts when they were last marketed three years ago.
Lendlease first tried to sell back in 2019. But by early 2020, Covid and lockdowns had hit and the first deal was scuppered, with a keen buyer who was never named withdrawing.
"We had a highly competitive campaign in 2019 but unfortunately Covid disturbed the process," said Lachlan MacGillivray, Colliers' retail capital markets managing director Asia Pacific, from Sydney in February this year.
Bowyer said today that consent had been obtained for the development on the carpark.
That land was bought from Eke Panuku which is under attack from new Mayor Wayne Brown - who wants to sack the entire board.
Lendlease said its carpark project plans had been done "in consultation and co-ordination with Panuku" but made no mention of buying the site from the council.
A new building will rise beside the existing mall. Photo / supplied
Property records show Lendlease Funds Management now owns the 875sq m site at 3 Paynes Lane.
Richard Taylor, Eke Panuku isthmus priority location director, said that the entity welcomed Lendlease's intention to further expand and develop its site.
"Onehunga is a critical area for Auckland's growth. The revitalisation of its town centre is a priority for Eke Panuku. We're delighted to see local business owners developing their customer offerings," Taylor said.
A Panuku spokesperson said it sold the site to Lendlease in 2019 but that deal has only recently settled. Bowyer said settlement was this year.
Lendlease got approval to buy four discount retail properties here in 2010 via the Overseas Investment Office after it was selected as the preferred bidder to buy ING Retail Property Fund Australia's assets here.
Dress Smarts in Auckland, Tawa, Hornby and Dunedin were then sold.
Auckland Airport is also building Mānawa Bay, a new $200m discount factory outlet centre, well under way with 120 shops on a greenfields site northeast of the runways on former Aviation Golf Club land.
This council-controlled organisation under investigation by PwC. Photo / Supplied
Auckland Council has asked consultant firm PwC to examine the potential conflict of interest allegations levelled at Eke Panuku over land dealings in the city.
Ngāti Whātua Ōrākei Whai Rawa board chair Michael Stiassny complained about "potential conflict of interest" situations with board members over land transactions.
He wrote to Phil Wilson, the council's director of governance and council-controlled organisation partnerships, about the situation.
Stiassny expressed "our serious concerns at the conflicts of interest on the board of Eke Panuku and the potential impact of those conflicts on the fairness of its process for sourcing and evaluating development proposals".
Wilson said the matters would be investigated by PwC.
The complaint "is very serious given that, for us, integrity matters are paramount", Wilson wrote on June 3 to Grant Kemble, Whai Rawa's new chief executive.
