Bunnings forges ahead despite hiccup in plans

Australasian hardware chain Bunnings is going to the Environment Court after knockbacks on plans for two North Island stores in its $150 million expansion.

Rod Caust, Bunnings NZ's general manager, said yesterday a decision banning the business from putting up buildings totalling 23,886sq m at Glenfield and in Hastings would be appealed.

Last July, Bunnings said it would spend $90 million and bring 500 new jobs but in May this year it bucked the recession announcing it was adding to the expansion and would spent a new total of $150 million and 600 new jobs in the next two years.

Not all its developments are going as planned.

Bunnings cannot build on the former 3M site on the North Shore nor on the Pakowhai Rd site in Hastings. Bunnings wants to build its new Glenfield mega-warehouse very near the new Mitre 10 Mega on Poland Rd.

A hearing is due around February when Bunnings plans to argue for the right to develop an 11,686sq m warehouse.

"The initial planning application was declined on the basis of one intersection," Caust said yesterday.

The former 3M site is between Wairau, Archers and Poland Rds, near the new Pak'nSave supermarket - a development which also struck traffic problems forcing Foodstuffs to upgrade roads and install traffic lights before it could open.

The hardware chain litigation is a further step in Bunnings' long-running plans for a lower-North Shore store. In 2007, the chain, owned by ASX-listed Wesfarmers, bought the Morgan Furniture site when it became available.

Bunnings got resource consent to operate a warehouse there but after going through that process, Caust said the 3M site came up for sale.

Bunnings decided to buy that because it was a better location and was a better-shaped site, he said.

"Our intention is to open a Bunnings Warehouse on the 3M site as soon as possible," Caust said in May.

Caust said the Pakowhai Rd, Hastings, land was bought and a 12,200sq m store planned. But a zone change was needed and consent was declined.

"That decision is being appealed to the Environment Court and a decision is due mid-2010," he said yesterday.

Other parts of Bunnings' expansion are on track. A Bunnings Warehouse opened in Gisborne on August 3 and a Cambridge store opened on April 13.

Asked for an update on the expansion, Caust said the large Bunnings Warehouse in Dunedin was well under way.

"Site earthworks and pre-loading are now complete with sufficient settlement achieved. Working drawings are complete and building consent approved. Construction tenders closed on September 30 and a builder appointed. Planned opening date is middle 2010. Total size of store is 12,566sq m," he said.

Plans in Te Awamutu are in hand: "A leasehold interest in an existing store has been purchased. The site is to be redeveloped once planning approvals and building consent have been obtained. Opening date is planned for late 2010. The store will be 2200sq m with a 3500sq m timber yard," Caust said.

Planning for the new Bunnings Warehouse at Wellington's Lyall Bay is under way but building is yet to start: "Planning approvals have been obtained. The construction start is planned for April, 2010. Opening date is planned for the late 2010. The store size 9609sq m," he said.

A Bunnings Warehouse at Takanini is planned: "The site is purchased on Great South Rd for redevelopment to a large warehouse. Currently planning process under way internally. Store size approximately 10,000sq m," Caust said.

Permission to built the Mt Wellington Bunnings Warehouse was granted: "The Masport site has been purchased on the corner of Ellerslie Panmure Highway and Mt Wellington Highway.

"Masport Industries is to remain on part of the site while a large Bunnings Warehouse is developed on the balance. Planning consent has been granted. Indicative opening date mid-2011 and the store will be 11,100sq m."

A medium-sized warehouse of 6000sq m is planned in West Auckland. Caust said the former Stevenson's yard had been purchased and resource consent granted: "Originally we had planned for a mid-2010 opening, which has been delayed from an internal viewpoint as we focus on opening the East Tamaki trade centre as our next major Auckland project.

"The opening date at Westgate is more likely towards end of 2010," he said.

A site for the new East Tamaki Bunnings' trade centre site at 94 Cryers Rd had been bought unconditionally for $3.55 million: "Settlement took place September 30. Alterations and construction work are due to start this month with opening planned for January 2010. This is a 2800sq m warehouse and 1100sq m concrete yard," he said.

"This location is a trade designated store that specifically services our trade customers with a high proportion of delivered goods to site and a smaller element of pick up trade purchases."

THINKING BIG
* Hastings and Glenfield plans going to court
* Dunedin warehouse under construction
* Planned: Te Awamutu, Lyall Bay, Takanini, Mt Wellington, Westgate
* About to start: East Tamaki