Renewal closer for Victoria Park Market

David Henderson will stay on as development manager. Photo / Janna Dixon

The ink is almost dry on a deal to finally revamp Auckland's tired Victoria Park Market.

Property developer David Henderson hopes to finalise the plan next week for the sale of the site to a syndicate of buyers who will implement his long-held redevelopment plans.

Eighty operators will move into the new-look market, which will include a restaurant and nightclub zone off Drake St and a retail precinct at the Victoria St level.

Restaurants will include Mexican eatery the Flying Burrito Brothers, an Argentinian steak house, a New York-style tapas bar and a Japanese restaurant. A German brewery is also interested.

All the restaurants and bars will have outdoor areas.

Auckland radio station Big FM is to take up residence in a space with a stage for live performances.

The heritage walk of famous New Zealanders will be resurrected, and it will also feature a small museum.

The $25 million redevelopment will take nine months and could begin next month.

Henderson has owned the 1905 former Auckland City rubbish destructor site since 2004, and the revamp has been planned since then.

But the developer has fallen on hard times and is facing bankruptcy.

The sale to the mystery syndicate was part of a scheme of arrangements he was trying to agree with his creditors, he said.

A condition of the deal was that he stay on as development manager of the project. "For the syndicate to buy it we had to do a lot of things," he said.

This included pre-leasing more than 50 per cent of the market.

Some of the existing store holders had signed, but leasing manager Sarah Prenter said they had also gone to Australia to source fashion retailers.

As a result, designers from Perth, Melbourne and Sydney were moving into the market.

"Everything down here is going to be destination - that's our point of difference. We're not making them a mall."

Each of the shops would be on a strata title, meaning they could be sold off to owner-operators.

The operators also planned to attract a GP and other services such as beauty therapists, she said.

With Telecom and later ASB moving into the area, the development would have three target markets - staff working for nearby corporates, tourists, and local residents, Prenter said.

The recent part-resolution of a legal wrangle between Henderson and his former wife Rochelle helped pave the way for the sale.

Last month the High Court removed caveats placed by Rochelle Henderson on Victoria Park Market and a number of other central Auckland properties.

Henderson, a former Rich-Lister who developed Princes Wharf and still lives in the penthouse apartment, said he was excited the market rejuvenation was hopefully going ahead.

"It's good to get your teeth into something after a number of years of being able to do nothing because of the finance company collapses."

He bought Victoria Park Market for $14.1 million. Quotable Value records show its current capital value is $24.8 million. It has been reported it will sell for less than its mortgages.

"I feel that I've done the best I can regarding these assets for the people who have lent me money," he said.

His penthouse has been on the market for three years. "It's a huge apartment, people say they want something big but 15,000 square feet is a pretty big apartment including decks."

THE NEW RESIDENTS

Food and entertainment:
* The Flying Burrito Brothers
* La Zeppa tapas bar to remain
* Argentinian steak house
* Japanese restaurant
* New York-style tapas bar
* German brewery is interested
* Nightclub

Other:
* Big FM
* Australian fashion labels
* GP
* Beauty therapists
* Heritage walk
* Museum