Pacific Property Fund set to by Whangarei Farmers retail building

An artist's impression of how the outside of the Farmers store in Roberts St, Whangarei will look after the refurbishment.

The imminent purchase of landmark central city property signals a show of confidence in the Whangarei economy.

Pacific Property Fund, an investment portfolio managed by Property Managers Group, has announced its intention to buy its first property in Whangarei for an undisclosed sum.

The building is currently tenanted by national retailer the Farmers Trading Company, which will commence a new 15-year lease following a building refurbishment programme.

Pacific Property expects to take ownership of the building before Christmas. The building's most recent rating valuation was $5.1 million.

Northland Chamber of Commerce chief executive Tony Collins says the investment is a vote of confidence showing the CBD has a role to play in Whangarei's future.

When seen with other investments such as Quest Apartments, the Laneway and the district council's ongoing improvements it creates a strong "attractant" for other investments to follow.

The refurbishment will include a new modern building facade including an enlarged entrance way, new escalators, pedestrian footpath ramp, re-configuration of front carparking including pram and wheelchair access, as well as a major overhaul to the mechanical, electrical and hydraulic services of the building.

The pending acquisition of 8 Robert St forms part of the offer of 16,000,0000 new shares in Pacific Property Fund the largest investment portfolio Property Managers Group manages, the company says.

Funds raised in the share offer will go towards the purchase of 8 Robert St, as well as a logistics industrial hub in the Central North Island (Stag Park), and a mixed-use commercial and retail property in the heart of Tauranga's CBD.

Pacific Property Fund director Denis McMahon says the acquisition is an excellent addition to the fund's diversified portfolio and would take its total assets to more than $70 million.

The manager, Property Managers Group's chief executive Scott McKenzie, says the proposed acquisition by Pacific Property signifies confidence in the ongoing growth in the area.

"Whangarei generates approximately half of the Northland regional economy and growth is continuing with GDP up 2.1 per cent on the past year. Regional spending and investment indicators show ongoing expansion in the area; population, employment and productivity figures have all increased in the past year, which, alongside a diversified portfolio of industrial, retail, and office properties, makes this a sound proposition for Pacific Property shareholders," Mr McKenzie said.

Property Managers Group was formed in 1992 and has $200 million of property and funds under management.