New Zealand’s second giant Costco Wholesale shop will be built at South Auckland’s Drury, it has been confirmed.
Kiwi Property chief executive Clive Mackenzie and Costco country manager Chris Tingman made a joint statement about a conditional land deal.
“Kiwi Property has reached a conditional agreement with Costco Wholesale to sell the retailer 6.4ha of land at its new Drury development, paving the way for New Zealand’s second Costco store,” they said.
Kiwi is spending hundreds of millions on a new town centre at Drury, where the American-headquartered retailer is to be its trump card after the same NZX-listed entity brought Ikea here, to open on December 4.
Mackenzie referred to the success of Costco opening at Westgate on September 28, 2022.
“Costco has been a hit with Kiwi consumers since it opened its first store in Auckland and we’re pleased to be working with them on this exciting opportunity to bring Costco further south,” Mackenzie said.
Tingman referred to Waikato and areas south of Auckland, where Costco’s customers live but are now travelling to Westgate at Massey in the northwest.
“We are very excited to be entering into this agreement with Kiwi Property in a location as great as Drury,” he said.
“While still subject to planning and corporate approvals, our aim is to introduce our unique high-quality, low-cost merchandise to Drury, serving our significant membership base in the south of Auckland as well as Hamilton and the Waikato region.”
Kiwi has a 53ha site where it started earthworks in October 2022, ready for a new town hub to be created with two other developers: Oyster Capital and Fulton Hogan.
That is to be a city the size of Napier within Auckland’s boundaries.
Costco is buying a site at the southern end of Kiwi’s land, adjacent to State Highway 1.
Last week, RMA Reform Minister Chris Bishop welcomed the Kiwi Drury metropolitan centre project winning fast-track approval.
An expert panel approved Kiwi Property Holdings’ application in April for the development.
“The development is projected to inject over $1.45 billion into Auckland’s economy over the next 11 years and is expected to deliver around 3420 fulltime direct employment roles in construction and related services,” Bishop said on Friday.
The 14,000sq m Costco Wholesale Westgate is on land sold by Mark Gunton’s New Zealand Retail Property Group.
Kiwi is expected to say more at its November 24 interim result.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.