Store cornerstone of Stockyard Falls project

Artist's impressions of the Stockyard Falls Centre which will include a retail development as well as showcasing Warkworth history. Photo / Supplied

The proposed $35 million 20,500sq m Stockyard Falls centre in Warkworth, which is projected to be one of the biggest retail developments north of Auckland, will be anchored by a new Mitre 10 Mega store which is now being offered for sale.

The 7270sq m Mitre 10 Mega store will occupy a 14,150sq m site on the corner of Woodcocks Rd and Mansel Drive on the western perimeter of Warkworth on a 15-year lease, with two six-year rights of renewal.

The mega store appears in the latest issue of Colliers' National Portfolio and is being marketed by Colliers International brokers John Green and Jason Seymour for the developer, Perrendale Holdings.

Green says the Mitre 10 offer represents "a landmark opportunity" for investors to own a major retail outlet on a long-term year lease with its own freehold title and settlement on completion of the building.

"Resource consent has been granted for the site and earthworks have been done. There is a clear path for development progression for the Mitre 10 Mega store, which is due to be built and operating in early 2011," says Green.

"In addition, the store will be a core part of a retail development concept that has the fundamental prerequisites to succeed. It is in a high-profile area that is growing rapidly and under-serviced by national retailers and it is close to the main national State Highway 1 with new roads due to be built alongside the centre.

"Factoring in the long lease term to a nationally important brand, alongside a shortage of land in this area, plus a growing population, infrastructure improvements and strongly growing retail demand, this is a phenomenal long-term investment opportunity that will appeal to high-net-worth individuals, family trusts and other serious long-term investors."

Seymour says a factor giving Perrendale Holdings confidence in the future of the new centre is its position in respect of the developing road network with extensive roading improvements under way.

"Stockyard Falls sits along the route of the proposed Puhoi-to-Wellsford road and in time the roading system is expected to change to go right past the retail centre.There will be access points at Warkworth and Wellsford and the new highway will pass Warkworth to the west."

To be built in three stages over the next five years, Stockyard Falls occupies a greenfield site bordered by roads to the west and east, and on the banks of the Mahurangi River to the north. The centre will include commercial and entertainment buildings, fast-food operators and a residential park for the elderly.

"The design for Stockyard Falls draws on Warkworth's history and will combine modern New Zealand vernacular architecture with heritage style features," says Neil Barr of Perrendale Holdings. "It will complement the town's special ambience with heritage building designs and significant native planting to enhance its riverside location."

Alongside the centre, Summerset Holdings is developing a $40 million, 150-home retirement village, which will also include a 40-bed care facility.

Completing the rezoning process 18 months ago, Perrendale Holdings finished earthworks on the development last summer and began a leasing campaign for remaining space after securing Mitre 10 Mega as the anchor tenant alongside two other large bulk-retail tenancies, which range from 2000sq m to 4000sq m.

Neighbours include: Siteworks, Kindercare Learning Centres and Ceratelle Marketing - importers now operating from Airport Oaks in Mangere.

Colliers International's national retail manager, Ash Hira, says Colliers is seeing very strong interest from national retailers wanting to locate to Stockyard Falls. "The annual catchment growth in this area is running at more than 9 per cent per year which is one of the highest rates of growth in New Zealand," Hira says.

"However, the catchment area is extremely under-serviced by national retailers, so it is not surprising that Stockyard Falls is attracting considerable interest. We are in the middle of discussions with major local and national tenants for the retail space and we are extremely confident about prospects for the centre."

Barr describes the Stockyard Falls development as "a game-changer" for the area that will create up to 450 new jobs.

"It will boost regional employment by around 4 per cent into the future, allowing those retiring to live and be cared for in their own community and assist Warkworth to fulfil its growth aspirations as a key hub within the Auckland region.

"Warkworth is the key service centre for Rodney North, which is New Zealand's second-fastest-growing region.

"The area is identified in the Auckland Regional Growth Strategy as a key growth node with well-planned, sustainable development being a vital part of this growth to support and service the increasing local population," Barr says.

The closest large-format retail centre and shopping mall to Warkworth at present was 40km to the south in Albany,

Barr says consultancy Market Economic has calculated this would save Mahurangi North residents up to $9 million annually in travel expenses.

"Research we have conducted shows that $47 million in retail spending is lost to Warkworth because locals have to travel out of town to shop. Following the first stage of the development, retail leakage would be cut by $17 million to around $30 million."

Barr says primary and secondary catchments for the new centre are around 31,000 people from coast to coast in the east and west and from Puhoi/Glorit in the south to Maungataroto/Kaiwaka-South Kaipara area in the north.