The Westgate Lifestyle Shopping Centre in the heart of north-west Auckland, one of New Zealand’s fastest growing residential areas, is up for sale.

Currently owned by New Zealand’s largest diversified property company, Kiwi Property Group and located directly opposite the country’s first Costco store, the large format retail centre provides approximately 25,754 sqm of lettable area on a prime 5.1 hectare site, with 622 parking spaces.

The Westgate Lifestyle Shopping Centre is being marketed exclusively through joint agents Bruce Whillans, managing director of Whillans Realty Group and Colliers International sales director, Richard Kirke, with expressions of Interest closing on November 17 2022.

Home to 28 stores including some of Australasia’s best known brands, Westgate Lifestyle is anchored by five major retailers, including Harvey Norman, Freedom Furniture, Hunter Furniture, Briscoes and Rebel Sport.

The tenancy mix includes Warehouse Stationery, Bed Bath & Beyond, Bedpost, Flex Fitness, Godfreys, Kitchen Things, Lighting Direct and Nood, and produces a net annual rental income of approximately $NZ6 million.

Whillans’ Bruce Whillans says: “Westgate Lifestyle Shopping Centre is currently fully occupied and the majority of the rental stream incorporates fixed or CPI rental reviews, giving it guaranteed rental growth.

“Alongside industrial, large format retail has been one of the most resilient asset classes through the pandemic. Rental growth in the sector has been supported by extremely low vacancy, currently sitting at less than 1%, high occupier demand and rapidly rising construction costs limiting new supply.”

Richard Kirke adds: “In addition to its attractive income profile and exposure to some of Australasia’s most well-known retail brands, the centre is underpinned by its significant land value.

“As a 5.1 hectare island site with over 900 metres of street frontage and profile to State Highway 16, the property is one of the largest in Westgate. Its underlying zoning permits development up to 32.5 metres, meaning the site could be intensified in the longer term.”

Whillans says demand for development land in Westgate is at a premium, with Westgate now home to New Zealand’s first Amazon and Microsoft data centres, the first Costco and the largest Bunnings Warehouse in the North Island. 

“The opening of Costco last month, directly opposite the property, is a major vote of confidence for Westgate. As one of world’s largest retailers, Costco is a drawcard destination, driving traffic and retail spend in the rest of the Westgate retail precinct.”

Both Whillans and Colliers expect to attract local and international institutional investors and high net worth individuals.

Kirke says “The property has exceptional retail fundamentals and will generate significant interest from buyers locally and offshore.”

Underpinning the Westgate retail area is the huge residential growth taking place in surrounding greenfield developments and new infrastructure projects. Already household incomes in the catchment area are well above the New Zealand average. 

Thousands of new homes are currently being built, or are in the planning stages at nearby Hobsonville Point, Red Hills, Whenuapai and Kumeū-Huapai adding to the growing residential catchment. These are four of Auckland’s largest greenfield subdivisions which will drive future demand for furniture, homeware, and appliances.  

Over the next 30 years, Auckland Council estimates that the population of Red Hills and Whenuapai alone will grow from 4,000 to over 40,000 people. 

For more information contact the agents via the contact form below.

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