National tenants enhance Bay Plaza

At a naming ceremony for Hawke's Bay's busiest shopping precinct are Bay Plaza centre manager Robyn Burns, (left), Bay Plaza investment director Hugh Lambie, Hastings District councillors Sandra Hazlehurst and Cynthia Bowers, Hastings Mayor Lawrence Yule and Hastings City Business Association general manager Susan McDade. Photo/Supplied

New national tenants have helped ensure the success of Hawke's Bay's only indoor shopping centre, says Bay Plaza Investment director Hugh Lambie.

He said the property was tired when purchased by Windermere Group two years ago, before the group embarked on a $4million redevelopment/refurbishment that was "a lot more" than first planned, Mr Lambie said.

"It was owned by investment funds previously who sat in Australia and didn't particularly care what happened to the tenants," he said.

"We could see it had good bones.

"We have done this a number of times with other shopping centres in Auckland and brought down a number of tenants that previously had no presence in Hawke's Bay.

"These were national tenants that were familiar with our ability to pull something together that would be appropriate for them. We wanted to get everything right for the long term. It has been an expensive exercise but we have lifted tenancy significantly."

They are fussy landlords, demanding synergy.

"We have had a look at the tenants from a long-term perspective. Pita Pit was a tenant that I really wanted because I knew they would do very well in a high-profile corner and they bring a good set of demographics to the centre. People who will visit on their lunch time and also go to the chemist, etc.

"So we are trying to think long-term as to what tenants we have and where we place them, to try and get a good overall mix.

"You have to get everyone trading well and feeding on each other."

The latest tenant, Hastings' business The Bald Butcher, will soon take up a tenancy alongside Pita Pit.

Bay Plaza was a good long-term investment and there were no plans to sell.

"It is very strong in a smaller market. There is no other shopping centre and there won't be one built in the short term because of council restrictions.

"Kmart is doing extremely well. They have been rated the number one store in New Zealand. Since our refurbishment they have done extremely well and have improved things within their store."

Bay Plaza's foot count, before construction started, identified it as having the highest foot traffic for any shopping precinct in Hawke's Bay with 30 per cent more than The Warehouse in Hastings and 26 per cent more than the busiest area in Napier.

Mr Lambie said foot traffic was "huge" at Christmas and continued to grow this year. It was up by 21.3 per cent compared with early 2013.

Pita Pit's opening exceeded expectations.

"It was the second-most successful opening week in their history. They have 52 stores around New Zealand so they were extremely pleased."

A space on Karamu Rd North, at the rear of the complex, is the only vacancy yet to fill.

Fit-out work on Spice Traders Indian restaurant, next to Muffin Break, is expected to start soon.

The development continues.

"We recently ran a number of focus groups and there are several new initiatives we will implement further to the feedback we received," Mr Lambie said.