Dominion Funds takes control of centre

The Northcote mall will be held in a separate entity rather an existing retail property fund. Picture / Herald on Sunday

An arm of unlisted property specialist Dominion Funds has bought Auckland property investor Josephine Grierson's half share of the Fox outlet shopping centre on the North Shore.

Paul Duffy, chief executive of property specialist Dominion Funds, said yesterday his firm had bought out Grierson's half share in the Northcote mall which would soon have more tenants.

Grierson was not available for comment but Duffy said: "Josephine just wanted to move on." The half share gives Dominion control of the centre which was at the heart of protracted legal action brought by the world's largest mall owner, Westfield. It claimed Fox's planning approval was illegal.

Westfield battled to have the centre shut down but Grierson emerged the victor this year.

Duffy said the mall was held in a separate entity, rather than in one of Dominion's retail property funds: "We wanted it that way from day one, given the risk and profile of the centre."

Dominion owns property valued at $617 million in eight separate investment vehicles specialising in various real estate categories including commercial, retail and industrial property.

Duffy refused to put a price on the Fox deal, saying the terms were confidential.

For the past two years, the centre has been reported in numerous media reports as being worth about $15 million, although no independent valuation figures have been made available.

Grierson partnered with Dominion around 2004 when she was converting the former Palmers Garden Centre into the series of discount brand outlet stores later named Fox.

Dominion, the property arm of Doug Somers-Edgar's Money Managers financial business, plans to expand the centre.

Duffy said more tenants would be opening there soon, including Line 7.

"We're satisfied with it and are about to take it to its next stage," Duffy said.

Fox opened in November 2004 with more than 50 shops.