New Zealanders' appetite for discount shopping has propelled an Australian funds manager to splash out $21 million expanding two retail centres here.
ING Retail Property Fund Australia has planning permission for the expansion of its Dress-Smart factory shopping outlets in Auckland and Christchurch.
ING NZ Retail Fund - a subsidiary
of the Australian entity and owner of the three-store chain (the other outlet is in Wellington) - has a total of 19 shopping centres worth A$1.1 billion ($1.19 billion) throughout New Zealand and Australia.
The Australians will spend $16 million at Onehunga and $5 million at Hornby in Christchurch.
The fund's chief executive, Ian Muir, said trading at the Onehunga outlet was so strong that it eclipsed Australian centres.
ING Real Estate, which manages the fund, commissioned independent research which found sales at the Onehunga Dress-Smart significantly higher than those at the average Australian outlet centre.
An extra 3800sq m or 40 per cent will be built at the Onehunga mall, which was expanded just over two years ago. An extra 38 shops will take the centre to 105 shops.
Work is due to start this month and finish just before the peak Christmas trading period.
The Hornby centre will get an extra 1700sq m for 12 more stores, bringing its total to 48 shops. Work is due to start this month and finish in August.
The centres are managed by Parnell-based Prime Retail Management, which is building a fourth outlet at Papamoa in the Bay of Plenty.
www.dress-smart.co.nz
