Whangaparaoa’s Coast Plaza on the market
An aerial view of the sprawling Coast Plaza shopping centre which is for sale at 719 Whangaparaoa Rd. Photo / Supplied
The Coast Plaza shopping centre in Whangaparaoa, about 35km north of the Auckland CBD, is being marketed for sale as presenting a rare opportunity in a fast-growing area.
“This sale gives investors an opportunity to capitalise on the city’s strong economic, property and tourism growth,” says Gareth Fraser, Auckland investment sales director, for Colliers International who, with colleagues Blair Peterken and Richard Kirke of the capital markets team, is marketing 719 Whangaparaoa Rd, for sale exclusively by international private treaty.
Offers on the 3.25ha property which is featured in the latest Colliers Portfolio, released yesterday close at 4pm on Wednesday, August 30 unless sold earlier by negotiation.
“This is a superb and incredibly rare chance to secure a trophy high-quality sub-regional shopping centre ideally positioned to benefit from Auckland’s ongoing success,” Fraser says.
“Coast Plaza serves one of Auckland’s fastest-growing locations. It is perfectly situated to benefit from the unprecedented growth that Whangaparaoa and the surrounding Silverdale, Orewa and Gulf Harbour catchments are experiencing.
“Anchored by national retailers Countdown and The Warehouse, the centre occupies a dominant position in Whangaparaoa and has recently been refurbished and rebranded.
“With annual net passing income of $3,430,587 plus GST, it also offers savvy investors the potential to significantly grow income through active management and reconfiguration.”
Fraser says Coast Plaza’s large landholding also has abundant future potential, with scope for Mixed Use development.
Peterken says the centre has a net lettable area of 19,623sq m including six large format tenancies, 47 specialty stores and two ATMs.
“Constructed in the 1970s, the centre was substantially extended in the mid-1990s and again in 2003,” he says.
“Late last year, an extensive upgrade was completed including a new outdoor centre, external painting, new signage and comprehensive rebranding to Coast Plaza.
“The split-level centre is well appointed with car parking for some 840 vehicles, predominantly under cover over two levels.”
Peterken says, that when fully leased, the centre could bring in an estimated net income of over $3,841,884 per annum plus GST – about $500,000 more than the current passing income.
Alongside anchor tenants, Countdown and The Warehouse, other major tenants include ASB, NZ Post, Life Pharmacy, Jetts Fitness, Whitcoulls and Flight Centre.
“Many tenants have recently committed to stay at Coast Plaza, including ASB, ANZ, Mor Art, Life Pharmacy and Esquires,” Peterken says.
“A recent leasing campaign has also yielded significant interest from food and beverage operators.”
Fraser says Coast Plaza is zoned Business Town Centre under the proposed Auckland Unitary Plan, offering abundant future development potential.
“The 3.25ha site has various options for potential residential, hotel and commercial development, all of which could benefit from the property’s extensive views of the picturesque Whangaparaoa Peninsula.
“There are also opportunities to add value by subdividing parts of the centre, including The Warehouse site and the adjoining entertainment precinct.”
Fraser says Coast Plaza comprises an enclosed shopping centre split over two levels, with most retailers concentrated at the western end, incorporating Countdown and the specialty shops.
Adjoining the centre with frontage to Link Crescent is an additional structure incorporating the gym, bowling alley and specialty stores.
“The main structure, built to 90 per cent of new building standards, consists of reinforced columns and beams with steel portal framing and steel roof trusses,” Fraser says.
“Flooring is reinforced concrete slab with external walls a combination of concrete block and pre-cast concrete tilt slab. The roof is metal sheeting with sky lights throughout.”
The large basement car park is split over two levels and offers easy access to the shops via travelators.
Anchor tenant Countdown is part of Progressive Enterprises, which is ultimately owned by Australian supermarket giant Woolworths.
Fraser says the supermarket chain is one of New Zealand's largest and most successful retail organisations
“It is the country’s third largest company by revenue and the largest private sector employer, with more than 18,500 staff.
“Progressive owns and operates some 184 Countdown supermarkets throughout New Zealand.”
The Warehouse, the other anchor tenant, is New Zealand’s largest non-food retailer, selling a wide range of products including clothing, furniture, homewares, electronics, entertainment and gardening.
“Founded by Sir Stephan Tindall in 1982, the company has 92 stores throughout New Zealand,” Fraser says.
“It is owned by publicly listed company The Warehouse Group Limited, which also owns Warehouse Stationary, Noel Leeming and Torpedo7.”
Fraser says investors can ‘take comfort’ from the excellent tenant covenant provided by two nationally significant anchor tenants.
Kirke says Coast Plaza is ideally located at the heart of the Whangaparaoa Peninsula, in between Silverdale and Gulf Harbour and 10km southeast of Orewa.
“It’s in the area known as Arkles Bay, adjoining Wade Heads, Stanmore Bay and Manly. Coast Plaza is on the southern side of Whangaparaoa Rd with 115m of street frontage to Main St to the northeast, 80m to Link Crescent to the west, and 17m to Wade River Rd to the south.”
Kirke says surrounding development comprises retail, commercial and service industries which cater to an extensive residential catchment.
“Due to its elevated ridge-top position, Coast Plaza has high exposure to the peninsula’s traffic. It is well serviced by public transport along Whangaparaoa Road and passenger ferries from Gulf Harbour.
“The site also stands to benefit hugely from the proposed Peninsula Link route, linking Whangaparaoa to State Highway 1 at Redvale.”
Kirke says Coast Plaza’s primary catchment is predicted to grow in population by 14 per cent over the next 10 years.
“Over the same period, the key demographics – aged 20-34 and 60 plus – are forecast to increase by 34 per cent.
“The population of Coast Plaza’s secondary catchment is also estimated to increase by 31 per cent.”
Kirke says families with children make up about 46 per cent of households in the primary catchment and the average household income is high.
He says Whangaparaoa is relative close to Auckland as New Zealand’s largest commercial centre and the main international gateway, providing 35 per cent of New Zealand’s GDP.
“Auckland’s population is growing at a faster rate than any other New Zealand centre. The estimated population of 1.5 million is projected to grow by a further million by 2040, triggering demand for about 380,000 new houses and many new business premises.”
Kirke says Auckland’s fundamentals are underpinned by strong demographic trends, while tourism in the area is also flourishing and expected to grow over the next five years.
“Whangaparaoa and Coast Plaza are well placed to benefit from this growth.”
Gareth Fraser, Colliers International.