By ANNE GIBSON
The developers of the landmark Mercury Energy site in Newmarket are leasing out the buildings, which means it may be some time before they are demolished.
Westfield NZ and St Lukes Group are proposing a mall twice as big as St Lukes on the site.
However, the Auckland City Council has not received a resource consent application and noted the leasing of the existing buildings.
The chiefs of both companies say they will eventually develop the site. They dismiss any historic merit in the former Mercury Energy building.
Earlier this month, Westfield appointed Bayleys Real Estate and CB Richard Ellis to lease the existing building and vacant land fronting Broadway, Remuera Rd, Nuffield St and Mahuru St.
Tenants are being enticed to the site by a minimum guaranteed two-year gross lease on any part of the vacant buildings. They have the option to renew the lease for a further two years.
The catch is a six-month demolition clause.
Westfield has a vast 24,226sq m of empty buildings on its site and rents range from $80 a square metre to $250 a square metre for offices, retail and warehousing.
St Lukes bought the site in October last year for about $50 million.
Jonathan Ogg of CB Richard Ellis said carparks were being leased for around $25 a week in an uncovered area.
He had already leased some of the office space and some retail areas had also been let.
The site had potential for cafes, food outlets, storage and workshops, as well as character offices and boutique retailing, he said.
"We haven't seen a property with as many exciting possibilities come on the market since Turners & Growers decided to quit its site in the Viaduct Basin."
The 48-year-old former Mercury Energy building on the site has no historic classifications and can be demolished, although city heritage planners and architects have said it would be a tragedy if it were bulldozed.
The structure has considerable architectural merit and aesthetic value, according to a former chairwoman of the Historic Places Trust, Dinah Holman, who is also author of Newmarket Lost and Found.
The building, designed by architect Llew Piper in 1951, has no Auckland City Council or Historic Places Trust protection orders.
Westfield has long-term plans to build a 60,000 sq m mall, which could include carparks, cinemas and supermarkets.
Mall plans on hold as buildings up for lease
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