A sprawling Kāpiti Coast retail precinct is being offered for sale, providing an opportunity for investors and developers to take part in the transformation of one of New Zealand’s fastest-growing areas.
Kāpiti Landing Retail is superbly positioned in Paraparaumu, at the heart of the Kāpiti Coast and the gateway to the Kāpiti Region.
Six freehold buildings containing 11 tenancies, as well as three future retail development sites, are now available for sale either individually or collectively. Individual properties available include a stand-alone Mitre 10 Mega, a PlaceMakers plus a building accommodating New World, Repco, Kitchen Things and Smiths City and a ground lease on a Caltex petrol station.
The thriving Kāpiti area is poised for significant and sustained growth, driven by substantial public investment in major infrastructure projects, as well as significant private sector development.
Templeton Group has exclusively appointed Colliers International to market the offering by way of Expressions of Interest, closing at 4pm on Wednesday 1 April.
Jason Seymour, Capital Markets Director at Colliers, says the vendor is offering significant flexibility to purchasers.
“Kāpiti Landing’s retail properties are for sale in two stages, allowing buyers to express interest in either or both.
“Stage One comprises six freehold buildings containing 11 tenancies. These are available individually, collectively or in combination.
“Stage Two comprises three vacant future development parcels. Buyers can either purchase the future retail premises upon completion by the vendor, or partner with the vendor to deliver and then purchase the completed retail developments.
“A range of partnership options could be considered, including a structured joint venture or a development agreement.
“No matter which investment or development option you pursue, this is an outstanding opportunity to make your mark in an area set for further significant growth.”
Seymour says Kāpiti Landing is o become a comprehensive retail and commercial precinct which is easily accessible to the surrounding communities of Waikanae, Paekakariki, Pukerua Bay and Ōtaki.
First opened in 2011, the Kāpiti Landing retail centre is the focal point for the wider precinct. It boasts modern, quality improvements with efficient layouts, and has been designed to allow further retail development to complement the existing improvements.
Rentals range from just over $87,000 in net annual rent for the smallest retail property, up to almost $1.43 million for the largest which includes the New World supermarket and three other tenants.
Several high-profile tenants are already in discussion with the vendor regarding new development options in Stage Two, providing plenty of scope for future growth.
The retail properties are located near the interchange of Kāpiti Road and the recently completed first stage of the Kāpiti Expressway.
Peter Herdson, National Director of Capital Markets at Colliers, says Mackays to Peka Peka stretch of the expressway has benefited the retail offerings considerably.
“High volumes of traffic on State Highway 1 have now shifted west towards the site, making Kāpiti Landing’s retailers significantly more accessible and visible.
“The Transmission Gully motorway project will further benefit the site by dramatically cutting the travel time from Wellington, some 52km to the south. This is expected to greatly grow the surrounding retail catchment.”
Richard Findlay, Managing Director of Colliers Wellington, says Transmission Gully will be a game-changer for Kāpiti.
“The $1 billion project will create a new 27km, four-lane motorway from Mackays Crossing to Linden.
“Due for completion in December, it will be one of the most significant new roads in the lower North Island and will dramatically increase regional connectivity.”
Findlay says the $979 million Kāpiti Expressway will also benefit the area greatly.
“An 18km section has already been completed between Mackays and Peka Peka, while a second 18km section is underway between Peka Peka and Ōtaki.”
Dean Anderson, Associate Director of Colliers Kāpiti, says the district is among the fastest growing in New Zealand.
“Kāpiti continues to enjoy strong economic, employment and population growth.
“It’s an attractive location due to its relaxed coastal lifestyle and proximity to Wellington, with almost one in 10 locals commuting to the capital every workday.
“With the completion of current infrastructure projects, the number of people wanting to live in Kāpiti and commute to Wellington is likely to increase significantly.
“As a result, Kāpiti’s overall population of 56,000 is projected to grow by some 30 per cent by 2047. To accommodate this growth, the district will require up to 6,700 new dwellings.
“All of this growth is driving demand for property in the area. Scarce supply and increasing sales values support further commercial, industrial and retail development.“With its prime location and relative abundance of developable land, Kāpiti Landing is well placed to benefit from this growth.”