Joint venture for Newmarket development
19 August 2002
Countries: New Zealand
Westfield Trust announced today it has entered into a joint venture with Auckland One Ltd, the owner of the Two Double Seven shopping centre in Newmarket, to collectively own and redevelop their joint land holdings in Newmarket Auckland, New Zealand.
Newmarket is one of Auckland’s premier retail markets and the combination of the land holdings, representing approximately seven hectares, will allow for a new master plan development, which will build on Two Double Seven’s fashion statement. The development is expected to comprise department stores, discount department stores, fashion precincts, restaurants and cafes. The joint owners are committed to starting the development as soon as possible.
“This joint venture allows us to work closely with the Auckland City Council, who have actively promoted the joint venture, and to integrate the project with existing transport infrastructure, so we can create a world-class inner-city development for the people of Auckland,” said Steven Lowy, Westfield Managing Director.
Under the joint venture, Westfield Trust has:
- sold a 50% interest in its property holdings in Newmarket for $NZ26.5 million;
- acquired a 50% interest in Two Double Seven for $NZ73.7 million; and,;
- acquired a 50% interest in Auckland One’s additional land holdings facing Broadway, for $NZ22.8 million;;
The transaction is not expected to have an impact on Westfield Trust’s distribution until the earlier of 2007 or the completion of a department store based development on the sites, as the relevant payments between the joint venture partners will not occur until such time. Each joint venture partner will continue to receive the income from their original property holdings until such payments are made.
Westfield Holdings has been appointed by the joint venture partners to manage and develop all the properties.
In 1999 the St Lukes Group (pre the amalgamation with Westfield Trust) bought the old Mercury Energy building in Newmarket and has since acquired nearby properties that make up an area of approximately 2.9 hectares.
These properties are immediately adjacent to the Newmarket railway station and bus terminal and have access on to the Broadway retail main street.
Auckland One is the owner of the Two Double Seven Shopping Centre and several adjacent properties of around four hectares. Auckland One bought Two Double Seven in 1992 and has acquired the adjoining land near the centre over the past five years.
Two Double Seven currently comprises a Woolworths supermarket, 61 specialty shops, 9,079 m2 of office space and 523 carparks.The centre is currently fully leased and is expected to achieve sales in excess of $NZ130 million in the forthcoming year.