The former supermarket building at Kensington as it has looked for the past four years.
The former supermarket building at Kensington as it has looked for the past four years.
A former Whangārei supermarket site which has been vacant for four years could become a bustling centre with specialist medical facilities and big brand stores.
Northland Regional Council (NRC), the owner of the high profile building and former carpark on the corner of Kensington and Kamo roads, has done adeal with Argyle Estates Ltd to develop a centre likely to house a medical centre, associated rooms and retail spaces.
Both parties are reluctant to reveal just who some of the already interested tenants are but Argyle Estates Ltd hinted some were already on board.
Auckland based Argyle is involved in commercial property development — specialising in accident and healthcare centres — throughout New Zealand and the Pacific region.
The company is also a big player in the retail development market, including big box retailing.
The former supermarket building at Kensington as it has looked for the past four years.
Spokesman Gerome Powell said Argyle's move into Whangārei signalled its own and other business confidence in the region's future.
''Our interest in Whangārei and in particular this site is driven by tenant demand for the area. Some of these tenants are well-known national brands and will be exciting new additions to the Whangārei market. While it is still early days, we look forward to revealing more in due course.''
Powell said Argyle had been engaged by the NRC to deliver the building refurbishment.
''We are really enthusiastic about the project, and are looking forward to working in Whangārei.''
An independent valuation report puts the value of the Kensington project between $13 million and $16.5 million.
The 9967sq m site comprises a parcel of 12 lots and at September 2015 had an estimated value of $5.5m.
The NRC's decision to retain ownership of the current building and full site came after a marketing tender process in 2016. In September last year it was reported a mystery buyer was ready to purchase it.
That was Argyle's related company, Aheto Holdings Ltd, but the deal was subsequently cancelled to allow the council to keep ownership of the property.
The empty former supermarket site had been subject to a range of suggestions for conversion into a community facility.
NRC chairman Bill Shepherd said the council had looked at various options over the years.
''Now we have something on the table that we believe can restore vitality to this area,'' he said.
"People have let us know they would value commercial and retail activity at this location and we feel sure they will welcome a fresh, new look that offers change and brings new energy to the community."
Shepherd said the building will remain in full council ownership as a high earning, tenanted investment property.
"It will become an important part of our property portfolio which significantly subsidises rates and council activities."
Preliminary work on the development will include due diligence, preparation and lodging of consents, tendering for the construction works, and securing commitment from anchor retail and medical tenancies.
The construction contract will later be open for tender, giving local companies the opportunity to participate.
That preparatory phase has been given the full council's go-ahead and will be funded through the Property Reinvestment Fund.
While the NRC has signed a development agreement contract with Argyle, the final "go or no-go" would depend on the results of the preliminary reports and consents.
The building has been vacant since June 2014 when former tenant Countdown, previously Woolworths, moved to Regent after 26 years at the site.
The sale of the site was delayed for two years to allow Whangarei District Council roadworks at the Kensington Ave/Kamo Rd intersection.
That work was then held up largely due to Public Works Act acquisition issues. Now completed, the improvements have since increased the profile, access to and value of the site, Shepherd said.
