Kmart moves into Manukau Supa Centa with 'big box'

By Chris Hutching

Friday 13th February 2004

Another new "big-box" store is planned by retail chain Kmart for Auckland. It will be in the Manukau Supa Centa and is due to open in time for Christmas trading this year.

The new development is one of the first under the Manukau Supa Centa's new co-owner, the unlisted AMP Property Portfolio, which bought into the development last year and will own the building.

Kmart has signed a 10-year lease on a new store, joining other established retailers such as Bond & Bond, Noel Leeming, Spotlight, Rebel Sports, Postie Plus, Freedom Furniture, Ezibuy and Harvey Norman.

Kmart general manager Craig McKeown said last month that the company was looking for new opportunities, following the opening of its 12th New Zealand store, near Auckland's Botany Town Centre.

The 4000sq m store will be purpose-built for Kmart and will be one of the largest at the Manukau Supa Centa. It will be built by the original developer of the Supa Centa, Jonmer Developments, and will have a value on completion of about $8 million, general manager of the AMP Property Portfolio, Murray Jordan said.

Kmart had other options, so AMP was pleased it chose the Supa Centa, he said.

Other large-format retailers were keen on the site and AMP Property Portfolio hoped to announce another big lease in the next month.

"Developing existing assets would allow us to enhance AMP Property Portfolio investment returns at minimal risk," Mr Jordan said.

Bulk retailing has been a consistent top-performing property category in statistics compiled by the Property Council.

Total returns (rental and capital appreciation) for the year ending September 2003 were 16.19% in this category.

Just before Christmas, the AMP Property Portfolio bought $150 million worth of bulk retail properties located around the country from developer Jonmer.

The acquisition is staged over the next three years and means that AMP Property Portfolio will be New Zealand's biggest owner of large-format retail property by value and area.

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