Five Mile enters second stage


Queenstown’s $130 million Five Mile development is entering stage two.

Auckland developer Tony Gapes confirms tenants are being signed for the last three of its seven buildings at Frankton, on a site near Queenstown Airport known as Hendo’s Hole.

“We’ve got some really exciting tenants coming through,” Gapes says, although he’s reluctant to give names.

The development’s $80m first stage is motoring along.

Gapes: “We’re hoping to hand over buildings two, three and four to the tenants around the end of September.

“We’ve been told by Naylor Love they’re still going to achieve that.”

For clarity, building two is Countdown, building three is Briscoes and Rebel Sport and building four is Warehouse Stationery and Number One shoes.

Other tenants include ANZ bank and Supercheap Auto.

Gapes’ Queenstown Gateway pre-sold three of its first four buildings to local investors.

They’ll settle when the buildings are completed.

Christchurch developer Dave Henderson boasted a $2 billion township would be built on the Frankton site. But his company Five Mile Holdings collapsed under a mountain of debt in 2008.

Henderson was bankrupted two years later.

Great Lakes Management – a company associated with Crombie Lockwood founders Steve Lockwood and Carl O’Shea – now owns the 23-hectare development block on the other side of Grant Road next to Five Mile.

General manager Simon Holloway says a masterplan has begun for the site, which has mixed zoning including town centre and high-density residential.

“We are currently working through commercial terms with a number of key tenants for the town centre area.”

The company wants to hang onto the town centre long-term.

Holloway: “We see this area developing as the place for the community to gather, shop and socialise with the development providing for smaller format specialty retailing, service and food and beverage establishments.”