The regional council wants ideas from developers interested in the Countdown store at Kensington. Photo / Michael Cunningham
The regional council wants ideas from developers interested in the Countdown store at Kensington. Photo / Michael Cunningham
Plans to develop Kensington as a medical precinct have been stalled with the sale of the old Countdown building for use as a medical centre falling over.
The Northland Regional Council is now pursuing investment opportunities and has called for expressions of interest from potential joint-venture partners to redevelop theformer supermarket site.
Last year council chief executive officer Malcolm Nicholson said possible uses for the site included finding a new tenant, redeveloping the site or selling it.
At the time, Mr Nicholson confirmed that one proposed concept was redevelopment to extend the city's medical facilities, specifically the development of Kensington Hospital services.
Council chairman Bill Shepherd confirmed to the Advocate yesterday that the building's sale for that purpose had fallen through and other interested retailers had also failed to step up to the plate.
He could not confirm who had proposed to buy the site or why the sale had fallen through. That was commercially sensitive information to which councillors were not privy.
The council was following the investment route as one option.
"We're now going through a formal process of exploring options for the property and are seeking expressions of interest from developers with a strong track record of successfully completing similar projects."
Cr Shepherd said the council did not intend to take on development risk. That would be carried by the developer as part of any agreement.
"We have no intention of becoming developers, but would instead be investors and aim at getting commercial returns to offset rates. We are looking at innovative ways to do that. This is a prime site in a retail precinct with central access."
The 9967sq m site consists of 12 lots with a land value of $3.635 million and recent capital valuation of $5.625 million.
The site originally was bought as a commercial investment and had not been inherited from the former Northland Harbour Board, as had other council properties.
Former tenant Countdown, previously Woolworths, had been at the Kamo Rd-Kensington Ave corner from 1988 until June this year, when the supermarket moved to Regent.
Auckland-based property consultancy Greenstone Group has been appointed to help the council with the process. Proposals will be taken until December 19 and reviewed in early January, before negotiations with short-listed parties.
