Rival Frankton Flats shopping centre developers have joined together in a surprise property play.
Di and Lindsay Williams – who developed the $24 million Terrace Junction complex by the Frankton roundabout – have bought 1.2 hectares off the Porter brothers’ Shotover Park company.
The parcel is across the road from Remarkables Park Shopping Centre and adjacent to the airport.
The Williams’s company Savanna Group will shortly file a resource consent application for a single-level building on the site, for between five and eight shops.
Lindsay Williams won’t yet disclose his tenants but says the $12m development will be “complementary and compatible with the existing Remarkables Park Town Centre zone”.
The Porter brothers sold their shopping centre to Auckland-based Diversified NZ Property Fund three years ago, but retain land around it for further commercial and community projects.
Williams commissioned his building design from Dunedin architects Mason and Wales, who were responsible for Remarkables Park Shopping Centre’s Rees House and Dart House buildings.
“Savanna Group is delighted with the design concepts which reflect the heritage-style design values evident throughout the Remarkables Park Town Centre,” he says.
The building will have 4200sq m of lettable space and 140 carparks.
Originally from Timaru, Di and Lindsay completed their two-level Terrace Junction, comprising 35 tenancies, about 18 months ago.
They’re about to start a fitout for their last vacant space – an office for a quake-affected business from Christchurch.
Lindsay says linking up with the Remarkables Park developers “makes a lot of sense”.
“The Porters have a number of pretty exciting projects they’re working on and they can’t work on everything.
“They’ve seen what we’ve done at Terrace Junction and thought we would be a good partner to take that part of the expansion forward and relieve them of that workload.”
The Williams’s will again work closely with Dunedin-based lawyer Ron Mackersy, whose investment group they belong to.
Mackersy, whose law firm has a branch office at Terrace Junction, says he’s a facilitator for such projects.
“We work with construction companies, people that want to invest into things and we work with developers.
“I suppose you might call it herding them all in the one direction.”
Williams says that under Mackersy’s umbrella he also has an extensive database of tenants.
“Our strength is our knowledge and our network – those things mean we can continue to do business even when times are difficult.
“We’ve been involved in the market here for more than 15 years so we’re definitely not new kids on the block.”