Land purchase adds growing strength to Queenstown's Five Mile village

Master planning is now under way on the second stage of Queenstown's Five Mile retail and residential development with prominent architect Peter Zillman, the lead designer of The Palms shopping centre in Christchurch, designing the village's layout, says Auckland developer Tony Gapes.

Gapes' company, Queenstown Gateway, recently bought for $27 million from Allied Farmers, 23.4 hectares alongside the western side of State Highway 6, the main highway into Queenstown. The property comprised part of Allied's purchase of Hanover Finance last year.

The newly bought land adjoins 7.8 hectares earlier sold to Queenstown Gateway by Hanover Finance for the first stage of the Five Mile project.

Gapes says that progress made on the first stage has given Queenstown Gateway the confidence to make the new land purchase, which has become Stage 2.

"The additional space provided through this new acquisition will make Five Mile a significantly stronger development and one of the best in the country," he says.

It's envisaged the transaction will create what will become the biggest mixed use development in New Zealand at 30.8 ha, including about 8ha of retail in the first stage of the development to service Queenstown's growing local and visitor population.

"We are working to produce a mixed-use concept that has never been seen before in Queenstown," says Gapes.

"It will have a specialty retail-themed village anchored by a Countdown supermarket, plus national and international retailers and a residential component. It's a potent mix, designed to attract local and international brands and consumers."

Ash Hira, Colliers' national retail manager, who is working with Queenstown Gateway to lease the precinct, says now the design of Stage 1 has been completed, Colliers is talking to retailers

"The retailers we are talking to are extremely positive about the prospects for this development, particularly as it is now expanding."

He says this enthusiasm is partly underpinned by Queenstown's record as the fastest-growing tourism region in the country, a trajectory that is projected to rise through the rapid growth of domestic and international flights into Queenstown.

"Currently 1.7 million people visit every year and this is set to rise to 1.91 million by 2015."

In order to service this growth, Queenstown Airport is undergoing a $30 million expansion to develop its domestic and transtasman connections to the area.