Papamoa is set to get a boutique 135-seat cinema in a new multi-million dollar development.

Construction has already begun on the project - which received a $2.3m building consent in May - on the corner of Golden Sands Drive and Papamoa Beach Rd.

Developers Bluehaven Management said it was the second stage of the Excelsa shopping centre.

The two-storeyed complex would open next year with a contemporary design and modern facilities, aimed at serving the area's booming catchment.

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Confirmed tenants were a gastro restaurant and bar, a 135-seat upstairs boutique cinema, a Mediterranean grill and other various bespoke eateries.

Bluehaven Management chief executive Nathan York said Golden Sands had experienced very strong residential growth, and the Excelsa Centre would continue to provide an invaluable amenity for our growing community.

Excelsa also underpins a number of other exciting commercial developments that it was planning for the future in Golden Sands," Mr York said.

High-quality housing stock and proximity to the beach had seen Golden Sands become one of the fastest-growing suburbs in New Zealand. New properties there typically sell for around $720,000, he said.

The new Excelsa development would open in stages between March and August next year.

Priority One projects manager Annie Hill said Smartgrowth's spatial plan was underpinned by the principle that people can 'live, work and play' in their local neighbourhoods and communities.

''The new retail centre on Papamoa Beach Rd will provide an important facility for the community, enabling easy access to retail, hospitality and medical facilities, meaning people won't have to get in their cars and drive across the city to obtain these services.''

The growth in residential building at Papamoa East was also a good indicator of economic growth and investor confidence, she said.

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Tauranga Chamber of Commerce chief executive Stan Gregec said Papamoa had been growing at a break-neck speed for some years now.

''The need for another shopping centre to service the newer residential areas makes a lot of sense, especially when you consider future growth which shows no sign of easing.''

The Chamber had been active in Papamoa . . . ''so yes, we do see the potential of the area - and we welcome new businesses and business people moving there''.

Golden Sands resident Kristy Hamlett said the plans for a cinema and eateries were "a great idea".

"Golden Sands needs more considering the rapid growth in the area, and it will be nice to have something closer for us locals to enjoy without having to go to the Mount or Tauranga."

Excelsa Centre Papamoa
* When completed, the total Excelsa Centre will offer 4400sq m of leased space.
* It will have more than 220 car parks and employ more than 100 people.
* The stage under development will include117 car parks and 14 new tenants.
* Stage one opened last year - tenants were a medical centre, dentist, pharmacy, café, a Four Square supermarket and two childcare facilities.
* Established in the mid-1990s, Bluehaven is one of the largest land developers in the Bay of Plenty, and in particular the Golden Sands area.