2019-0419 - Kapiti Landing IM_r9

INFORMATION MEMORANDUM

INFORMATION MEMORANDUM

CONTENTS
Introduction
The Offering
Investment Highlights
About Kāpiti Landing
Location
Infrastructure
Market Overview
The Properties Stage One
Tenancy Schedule
Property One
Property Two
Property Three
Property Four
Property Five
Property Six
The Properties Stage Two
Description of 3 lots as part of Stage Two
Planning Overview
The Sale Process
6
8
12
14
16
18
22
28
30
32
34
40
42
44
48
28
51
52
54

Colliers International NZ Limited has been exclusively
appointed by Templeton Retail to obtain Expressions of Interest
for the existing retail properties and future development
sites within Kāpiti Landing Retail.
INTRODUCTION
Kāpiti Landing Retail is situated at the gateway to the Kāpiti
region in an area set to experience continued and significant
growth from substantial public sector infrastructure investment
and private sector development. Recognising this potential,
some of the country’s best-known retailers have selected
Kāpiti Landing for their network expansion. The retail centre
includes 6 individual existing properties with 11 tenancies.
The retail components of Kāpiti Landing are marketed in
two stages. The first stage is comprised of the existing
retail properties in 6 freehold parcels available individually,
collectively or any combination. The second stage comprises
three vacant future development parcels, providing the
opportunity to either work with the owner in a structured
joint ventured arrangement to deliver and purchase future
retail developments or to purchase future retail developments
on completion.
Alternative structures will also be considered as part of this
EOI process, including interest on both stages together
involving the immediate purchase of all Stage One parcels
and commitment by way of a development agreement or
joint venture to purchase all future development. In Stage
Two, several high-profile tenants are already in discussion
with the owner regarding new premises options.

All interests are marketed by way of request for Expressions
of Interest, closing 4pm (NZST) Wednesday 1st April 2020
(unless sold prior), providing purchaser flexibility on both
the terms of their interest and in which components they
wish to express an interest in. Expressions of Interest are
to be lodged at the offices of Colliers International, Level
27, 151 Queen Street, Auckland, or by email via one of the
appointed agents.
This Information Memorandum provides preliminary
information to assist interested parties with their assessment
of the opportunity.
Further information is available at
www.colliers.co.nz/ p-NZL67009007
All enquiries are to be directed to the sole agents, Colliers
International NZ Limited:
JASON SEYMOUR
+64 21 607 999
jason.seymour@colliers.com
PETER HERDSON
+64 21 654 323
peter.herdson@colliers.com
RICHARD FINDLAY
+64 21 620 188
richard.findlay@colliers.com
DEAN ANDERSON
+64 21 244 2931
dean.anderson@colliers.com

Kāpiti Landing Retail is positioned at the
gateway to the Kāpiti region. The residential
and commercial areas surrounding it continue
to expand to form the central hub of the fastest
growing area in the Wellington region. Set to
benefit from massive growth in infrastructure,
many large retail tenants have already identified
Kāpiti Landing as a preferred, high profile location.
With 6 existing buildings accommodating 11
tenants and with further development parcels
available, Kāpiti Landing is perfectly positioned
to provide retail and commercial services
to a significant and expanding catchment in
the future.
The retail properties within Kāpiti Landing are
marketed in two stages:
THE OFFERING
STAGE ONE
Six existing retail properties fully leased and
available in 6 freehold parcels either individually,
collectively or a combination.
Property 1
A 15,200m 2 (approx.) Mitre 10 Mega
Property 2
A stand-alone block of 4 tenancies including
a New World Supermarket, Smiths City, Repco
and Kitchen Things with a total area of
approximately 6,926m 2
Property 3
A 3,270m 2 (approx.) car show room (Kia & Suzuki)
Property 4
A lessor’s interest in a 3,205m 2 (approx.) ground
lease for a Caltex branded fuel station. Improvements
on the site are owned by the tenant
Property 5
A 1,044m 2 (approx.) building with three automotive
retail/workshop tenancies
Property 6
A 7,043m 2 (approx.) PlaceMakers
STAGE TWO
Up to 3 vacant future development parcels. The
opportunity to either work with the owner in
a structured or joint ventured arrangement to
deliver and purchase future retail developments
or to purchase future retail developments on
completion. These land parcels are not available
for acquisition as vacant development land.
P9

STAGE ONE EXISTING
STAGE TWO
1
2
3
4
Building 1: Mitre 10 Mega
Building 2: New World, Smiths City, Kitchen Things & Repco
Building 3: Kia & Suzuki
Building 4 (land only): Caltex
Up to 3 vacant future development parcels,
providing the opportunity to either work with
the owner in a structured or joint ventured
arrangement to deliver and purchase future
retail developments or to purchase future retail
developments on completion.
1
Parcel 1: 1.3266ha (approx.)
5
Building 5: Automotive Services
2
Parcel 2: 4,294m 2 (approx.)
6
Building 6: PlaceMakers
3
Parcel 3: 6,730m 2 (approx.)

DISCLAIMER: The descriptions of the parcels are indicative only as the vendor may be carrying out minor boundary adjustments and a subdivision, in particular to create separate titles for
the 3 properties in Stage 2. In doing so, the vendor will ensure all access, car parks and other services are allocated to any new titles in compliance with the district plan and any existing
lease requirements. The more detailed property descriptions appearing later in this Information Memorandum are also to be read subject to this qualification.
KAPITI LANDING RETAIL

INVESTMENT HIGHLIGHTS

GATEWAY LOCATION
The Kāpiti Landing retail properties are located near the
Kāpiti Road and Kāpiti Expressway interchange, making it a
highly visible and accessible retail and service centre at the
gateway to the rapidly expanding Kāpiti Coast region. The
recently completed Kāpiti Expressway has benefited the site
considerably as it shifted the high traffic volume of the former
State Highway 1 further west towards the site.
STRONG MIX OF NATIONAL AND INTERNATIONAL TENANTS
High profile and well-known premium tenants including Mitre
10 Mega, New World, PlaceMakers, Smiths City, Kitchen Things,
Repco and Caltex (ground lease).
ACCESSIBILITY
When completed, the Transmission Gully project, combined with
the recently completed Kāpiti Expressway will dramatically cut
travel time to the wider Kāpiti Coast region from Wellington.
This greatly enhances the retail catchment area as the region
comes within easy commuter distance to New Zealand’s
capital city. The number of customers travelling to the centre
from the north has already significantly increased as a result
of the expressway and the Peka Peka to Ōtaki Expressway
currently under construction is set to further expand the
catchment to the north.
WIDE RANGE OF INVESTMENT OFFERINGS
Rentals ranging from $87,342 p.a. for the smallest property up
to $1,419,341 p.a. for the largest individual property provides
plenty of scope for investors to combine buildings to scale
their investment to meet their needs. The future development
parcels allow investors, developers and joint venture interests
the opportunity to expand their investment in the region
over time.
EXCELLENT GROWTH CORRIDOR
The Kāpiti Coast regional economy is one of the fastest growing
in New Zealand. A large portion of the local population commute
to Wellington for work each day. With the completion of
current transport infrastructure projects, the number of people
wanting to live and commute from the Kāpiti Coast is likely to
increase significantly. The substantial retail, commercial and
industrial expansion capacity of Kāpiti Landing will strongly
support this growth.
HIGH QUALITY IMPROVEMENTS
First opened in 2011, the Kāpiti Landing retail centre boasts
modern, quality improvements with efficient layouts. The
centre has been designed to allow further retail development
to complement the existing.
P13

ABOUT KAPITI LANDING
Situated in a prime location on the thriving Kāpiti
Coast, Kāpiti Landing is an expanding business
and retail park, providing a business gateway
to the Wellington region to the south. Kāpiti
Landing is situated in Paraparaumu, the heart
of the Kāpiti Coast and in close proximity to
Waikanae, Paekakariki, Pukerua Bay and Ōtaki.
P15

50 KM from WELLINGTON
LOCATION
KAPITI ISLAND
PEKA PEKA
TE HORO
OTAIHANGA
KAPITI LANDING
WAIKANAE
PARAPARAUMU
Waikanae River
PAEKAKARIKI
MACKAYS
PUKERUA BAY
PLIMMERTON
Transmission Gully
PORIRUA
CANNONS
CREEK
LINDEN
UPPER HUTT
GRENADA
NORTH
LOWER HUTT
PETONE
WELLINGTON
Lake
Wairarapa
EASTBOURNE

OTAKI
Kāpiti Expressway
Ōtaki River
The Kāpiti Coast District is the northern gateway to the
Wellington region. The district covers 730 square kilometres
and sits between the Tasman Sea and the Tararua Ranges.
Historically, development and growth of the district has been
concentrated around its early coastal and inland settlements
along the 40-kilometre length of the district. Paraparaumu is
the district centre, supported by Waikanae and Ōtaki townships
and other local rural/ beach settlements. The Kāpiti Coast is
well-known for its outstanding natural habitat and coastal
micro-climate, making it a desirable region for residents and
visitors alike. For residents, the Kāpiti Coast offers a more
relaxed lifestyle for those who work in surrounding areas, such
as Wellington’s CBD and for visitors it offers a multitude of
activities including nature reserves, beaches, original arts and
crafts and gourmet food and wine.
Paraparaumu is one of the fastest-growing urban areas in New
Zealand. It is well served by State Highway 1 connections to
the north and south and will benefit further from current and
future infrastructure projects set to substantially increase the
town’s accessibility. It has also been identified by the Kāpiti
Coast District Council for town centre regeneration which
forms part of a $26 million council upgrade project.
Kāpiti Landing is situated in Paraparaumu, approximately
50km north of New Zealand’s capital city in the heart of the
town’s established retail and commercial precinct. The centre
has excellent exposure to the new Kāpiti Expressway (SH1)
interchange and wide frontage to Kāpiti Road.
RIMUTAKA HILL
KEY DISTANCES
WELLINGTON CBD
LOWER HUTT
PALMERSTON NORTH
NAPIER
NEW PLYMOUTH
WHANGANUI
50 KM
50 KM
92 KM
266 KM
304 KM
145 KM
Source: Kāpiti Coast Council
P17

Kāpiti’s proximity to Wellington will be significantly enhanced
by the Government’s $2 billion infrastructure project which
includes constructing efficient road links from Levin to
Wellington, significantly reducing travel times from the north
and south to Kāpiti Coast and Kāpiti Landing retail.
INFRASTRUCTURE
Once completed, this investment is expected to make Kāpiti
an even more desirable place to live, bolstering and supporting
economic and population growth in the immediate areas
surrounding Kāpiti Landing. Central government infrastructure
investment has also driven other initiatives such as Council
led future transformation of the two biggest town centres –
Waikanae and Paraparaumu along with new shared paths and
increased cycle ways. The Council has already completed minor
public space improvements in Waikanae and Paraparaumu as
part of these initiatives.
TRANSMISSION GULLY MOTORWAY
The new $1 billion Transmission Gully motorway is a 27km,
four-lane motorway running from Mackays Crossing to Linden,
through Transmission Gully. Due for completion in December
2020, Transmission Gully will be one of the most significant
single pieces of new road construction in the lower North
Island. The Transmission Gully Private Public Partnership
(PPP) project agreement is between NZTA and Wellington
Gateway Partnership (WGP). WGP is a private group who will
finance, contract, design and then operate and maintain the
new motorway for 25 years following the construction period.
The Transmission Gully motorway will dramatically increase
regional connectivity creating increased accessibility to the
Kāpiti Coast from both the north and south.

TRANSMISSION GULLY ROUTE MAP
The Transmission Gully motorway is one of the most significant
single pieces of new road construction which on completion will:
• Create a network of new interchanges along
a 27km, 4-lane motorway and;
• Divert from the current coastal route, significantly
increasing connectivity
Source: NZTA; https://www.nzta.govt.nz/projects/wellington-northern-corridor/transmission-gully-motorway
P19

INFRASTRUCTURE
KAPITI EXPRESSWAY
The Kāpiti Expressway has been split into two sections. The
first section is the 18km Mackays to Peka Peka Expressway
(already completed), a $649 million project which provided
a much needed second north-south connection with a full
interchange at Kāpiti Road. Kāpiti Landing significantly benefits
from the first section being in close proximity to the new Kāpiti
Road Interchange.
Work to construct the second section of the expressway, is
now underway. The $330 million Peka Peka to Ōtaki (PP2O)
route runs 18km from Peka Peka Road in the south to Taylors
Road just north of Ōtaki and is made up of two parts:
1. A new four-lane expressway running along the
existing State Highway 1 alignment through Te Horo.
2. The establishment of an Ōtaki bypass with
connections to local roads and new bridges over the
Ōtaki River and Waitohu Stream.
In addition, projects such as the $196 million upgrade of the
local rail service will continue to underpin Kāpiti Coast’s role
as the heart of the district and the primary focus for retail,
commercial, cultural and civic activity.

Kāpiti Landing
THE MACKAYS TO PEKA PEKA EXPRESSWAY. THE BIG PICTURE
Significantly improves access to Kāpiti Landing from Wellington
PEKA PEKA TO OTAKI EXPRESSWAY. ALIGNMENT MAP
Will create increased accessibility to the North, further expanding the catchment of Kāpiti Landing
Source: NZTA.
- The Mackays to Peka Peka Expressway; https://www.nzta.govt.nz/projects/wellington-northern-corridor/mackays-to-peka-peka/
- The Peka Peka to Ōtaki Expressway; https://www.nzta.govt.nz/projects/wellington-northern-corridor/peka-peka-to-Ōtaki-expressway/

MARKET OVERVIEW

The Kāpiti Coast economy is one of the fastest growing in New
Zealand and the population is increasing just as quickly with
a current population of approximately 56,000. Projections
indicate that Kāpiti District’s population will continue to grow
by between 13,441 to 15,761 people from 2017 to 2047. This
equates to an annual growth rate of between 0.8% to 0.9%; or a
26% to 29% increase in population by 2047. To accommodate
this growth, the District will require between 6,595 and 6,707
new dwellings.
Currently over 4,500 people commute
to Wellington each day to work and
reside in Kāpiti Coast to enjoy a more
relaxed lifestyle. The new Mackays to
Peka Peka Expressway has significantly
increased accessibility from Wellington
and is therefore driving further
migration to the coast.
As a result, the residential market has continued to experience
strong growth in sales values especially in the Paraparaumu
area. The median sale price in the Paraparaumu Ward is
currently $655,200, outperforming the nationwide average
of $629,000. Scarce residential supply and increasing sale
values provides scope for further residential development in
the Paraparaumu area.
MEDIAN SALE PRICE / PARAPARAUMU WARD
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
Sources: REINZ, Infometrics, forecast.id
P23

MARKET OVERVIEW
Kāpiti has also experienced solid employment growth, slightly
outperforming the national average with a 1.9% average growth
over the same period, which has supported recent business
activity and demand for land.
A large portion of the District’s growth can be contributed
to several growing industries. These include Construction,
Professional, Scientific and Technical Services and Health
Care and Social Assistance. Historically strong industries
like Agriculture and Manufacturing also still contribute to
employment and GDP.
Work to forecast the future demand for business for Kāpiti
was undertaken by Wellington economists Sense Partners,
who produced joint forecasts for Kāpiti Coast District Council,
Wellington City Council, Hutt City Council, and Upper City
Council. Forecasting used data on the industry growth and
performance alongside population forecasts to identify future
scenarios for the demand of business land and floorspace.
Improvements along the Northern transport corridor were
identified as an important factor lifting future demand in
Kāpiti. While Wellington City will continue to attract workers
from the coast to the city, increasing accessibility along the
northern transport corridor has deepened the pool of available
labour which makes it easier for firms to locate, connect and
operate from both Kāpiti and Wellington City. The effect of
this when modelled identified a potential 7.6% increase on
demand for land.
Kāpiti will require an additional 64,488m 2
of land and 61,585m 2 of floorspace to
accommodate this future demand for
business activities.
With 56,000 people in the primary catchment and 100,000+
secondary catchment Kāpiti Landing is the gateway to doing
business in the lower North Island.
Sources: REINZ, Infometrics, forecast.id

GDP, 2019
LEVEL
$1,999
REGIONAL
GROWTH
1.5%
NATIONAL
GROWTH
3%
million in 2019 prices Kāpiti Coast District New Zealand
GDP GROWTH, 2001-2019
Kāpiti Coast District
New Zealand
Annual % change
7,5%
5%
2,5%
0%
-2,5%
-5%
00
02
04 06 08 10 12 14 16 18 20
PROPORTION OF GDP BY ANZSIC 1-DIGIT INDUSTRIES, 2019
4.4%
6.4%
6.8%
7.7%
9.1%
9.2%
9.8%
26.8%
10.2%
9.8%
Health Care And Social Assistance
Rental, Hiring And Real State Services
Professional, Scientific And Technical Services
Construction
Manufacturing
Unallocated
Owner-Occupied Property Operation
Retail Trade
Education and Training
All Others
BIGGEST CONTRIBUTORS TO ECONOMIC GROWTH, 2009-2019
HEALTH CARE AND SOCIAL ASSISTANCE $68m
PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES $67m
CONSTRUCTION $52m
MANUFACTURING $37m
RETAIL TRADE $33m
ALL OTHER INDUSTRIES $159m
TOTAL INCREASE IN GDP $416m

THE PROPERTIES
EXISTING
FUTURE DEVELOPMENT

THE PROPERTIES STAGE ONE

The six existing retail properties at Kāpiti Landing are marketed
in 6 freehold parcels and are available either individually,
collectively or a combination.
TOTAL STAGE ONE RETAIL SUMMARY:
SITE
AREA
6.369ha
(approx.)
TOTAL
OPEX
$580,131
(approx.)
NET LETTABLE
AREA
36,688.8m 2
(approx.)
NUMBER
OF TENANCIES
11
NET RENT
PER ANNUM
$3,432,055*
(approx.)
Property
Land Area
Net
Lettable Area
Estimated
Net Rent (p.a.)
1 2.168ha 15,200m 2 $1,008,372
2 1.94ha 6,926m 2 $1,419,341
3 4,298m 2 3,270m 2 $230,919
4 4,176m 2 3,205m 2 $87,342
5 2,836m 2 1,044.3m 2 $171,224
6 1.13ha 7,043.5m 2 $514,857
Total 6.369ha 36,688.8m 2 $3,432,055
NOTE: All areas are approximate
All rental/opex numbers provided in the following section are approximate. Please refer to the data room for detailed financial information.
*Projected to increase to circa $3.6M over the next 12 months, subject to operating expense details in data room.
P29

KAPITI TENANCY SCHEDULE
Building
Tenant Name
Rentable
Area
(sqm)
Lease
Type
Annual Rent
1 MITRE 10 MEGA KAPITI 15,200 NET $1,020,067
2 MODERN MERCHANTS LIMITED 2,994 NET $792,514
2 SMITHS CITY SOUTHERN LIMITED 2,231 NET $346,673
2 KITCHEN THINGS AUCKLAND LTD 1,003 NET $166,153
2 GPC ASIA PACIFIC 698 NET $120,000
3 HMC KAPITI LIMITED 3,270 NET $230,919
4 CORVUS KAPITI COAST LIMITED 3,205 GROUND
LEASE
$87,342
5 MOMENTUM LIMITED 611 NET $81,723
5 DC TRADING LTD 221 NET $46,465
5 THE ROOFBOX COMPANY LIMITED 213 NET $43,036
6
FLETCHER DISTRIBUTION LIMITED
(SEE NOTE 2)
7,044 NET $514,857
TOTAL 36,688.80 $3,449,750

OPEX
(Recoverable)
OPEX
(Nonrecoverable)
Lease
Start
Term
(years)
Next
Expiry
Rights of
Renewal
(years)
Review
Mechanism
Review
Frequency
Net
Rent
Review
$188,780 $11,695 18-Mar-11 18 17-Mar-29 1x9 plus 1x5
CPI + 3%/Market
on Renewal
3 Yearly Mar-20
$117,873 $3,559 17-Aug-13 15 16-Aug-28
3x5 plus 1x4
+ 364 days
102.5%/Market at
10th Anniversary
and on Renewal
1 Yearly Aug-20
$90,611 08-Aug-13 5 07-Aug-21 3x3
Market on
Renewal
On Renewal Aug-21
$40,725 29-Oct-13 8 28-Oct-21 1x6
CPI/Market on
Renewal
1 Yearly Oct-20
$25,899 $2,441 29-Jan-15 9 28-Jan-24 2x3
Market on 6th
Anniversary and
on Renewal
On 6th
Anniversary
Jan-21
SEE NOTE 1 01-Jul-14 9 30-Jun-23 1x6 Market 3 Yearly Jul-20
SEE NOTE 1 01-Dec-16 10 30-Nov-26
4x5 plus 1x4
+ 364 days
CPI+1%/Market on
5th Anniversary
and on Renewal
1 Yearly Dec-20
$14,890 01-Jun-14 6 31-May-20 1x3
CPI + 1%/Market
on Renewal
2 Yearly Jun-20
$6,342 29-Nov-16 3 28-Nov-22 2x3
CPI + 2%/Market
on Renewal
1 Yearly Nov-20
$6,342 01-Nov-18 4 31-Oct-22 1x2
CPI + 2%/Market
on Renewal
1 Yearly Nov-20
$70,973 26-May-17 9 25-May-26 3x6
104.5%/Market on
Renewal
3 Yearly May-20
$562,436 $17,695
NOTE 1: Recoverable outgoings charged as/when incurred
NOTE 2: Annual rent includes Improvements Rent of $8,223.47 p.a. payable for the initial term
NOTE 3: Further breakdown of non-recoverable OPEX available in the data room
NOTE 4: All rental and OPEX amounts stated are annual figures and are exclusive of GST
P31

PROPERTY ONE
PROPERTY 1 IS FULLY LEASED TO MITRE 10
SITE
AREA
NET LETTABLE
AREA
NET RENT
PER ANNUM
NUMBER
OF TENANCIES
2.168ha
(approx.)
15,200m 2
(approx.)
$1,008,372
(approx.)
1
PROPERTY DESCRIPTION
This large Mitre 10 Mega retail store sits on over 2 hectares of land. The store is divided into
three main areas providing the main retail area in the centre, trade retail to the southwest and
a garden centre to the northeast. Offices, staff amenity and storage areas are also provided.
This property has non-exclusive use of 160 car parks in common with other entitled users
within the centre.
Construction materials include reinforced concrete floors with steel portal framing and
predominantly long run metal walls with exposed precast concrete slabs incorporating
glazing.
FINANCIAL SUMMARY
TOTAL CONTRACTED RENTAL INCOME
PLUS RECOVERABLE OPEX
TOTAL GROSS INCOME
LESS TOTAL OPEX & RATES
TOTAL NET INCOME (approx.)
$1,020,067
$188,780
$1,208,847
$200,475
$1,008,372

ABOUT THE TENANT MITRE 10
KEY LEASE TERMS
TENANT
NET LETTABLE AREA
Mitre 10 (New Zealand Limited)
15,200m 2 (approx.)
Established in 1974, Mitre 10 is a well-established New
Zealand owned and operated home improvement
retailer with an extensive network of stores across the
country. It is New Zealand’s largest home improvement
and garden retailer and continues to expand.
LEASE COMMENCEMENT 18th March 2011
CURRENT LEASE TERM 18 years
NEXT EXPIRES 17th March 2029
LEASE TYPE
Net
CONTRACTED RENT
$1,020,067
NLA Breakdown (m 2 )
RETAIL STORE 8,519
YARD 891
HARDSTAND 3,960
LANDSCAPE AREA 617
ANCILLARY STORAGE 1,213
TOTAL 15,200
OPEX (RECOVERABLE) $188,780
OPEX (NON-RECOVERABLE) $11,695
RENT REVIEW
CPI + 3% every three years (10% cap) and market
rent reviews on renewal dates (40% cap from
commencement rent and 30% cap from renewal rent
respectively, hard ratchet)
RIGHTS OF RENEWAL
1 x 9 years and a further 1 x 5 years
Source: https://www.mitre10.co.nz/about-mitre-10
P33

PROPERTY TWO
PROPERTY 2 IS AN ATTRACTIVE, STAND-ALONE BUILDING
INCORPORATING FOUR WELL KNOWN TENANTS INCLUDING A NEW
WORLD SUPERMARKET, SMITHS CITY, KITCHEN THINGS & REPCO
SITE
AREA
NET LETTABLE
AREA
NET RENT
PER ANNUM
NUMBER
OF TENANCIES
1.94ha
(approx.)
6,926m 2
(approx.)
$1,419,341
(approx.)
4
PROPERTY DESCRIPTION
A large, modern building with four separate tenancies on approximately 1.94 hectares of
land. The two largest tenants are New World and Smiths City with two smaller tenancies
occupied by Kitchen Things and Repco located at the south-western end of the building.
General construction detail includes reinforced concrete floors, steel portal framing, wood
veneer with exposed precast concrete slabs and long run metal walls incorporating retail glazing.
FINANCIAL SUMMARY
TOTAL CONTRACTED RENTAL INCOME
PLUS RECOVERABLE OPEX
TOTAL GROSS INCOME
LESS TOTAL OPEX & RATES
TOTAL NET INCOME (approx.)
$1,425,341
$275,108
$1,700,449
$281,108
$1,419,341

TENANT 1 NEW WORLD
KEY LEASE TERMS
TENANT
NET LETTABLE AREA
Modern Merchants Limited
2,994m 2 (approx.)
LEASE COMMENCEMENT 17th August 2013
New World is one of New Zealand’s largest supermarket
chains which has been in operation since the 1960’s
and now has over 140 stores nationwide. Each store is
independently owned with all stores being operated
by Foodstuffs New Zealand.
Foodstuffs New Zealand employs over 30,000 people
and is 100% New Zealand owned and operated. Since
its origination in 1922, it has grown to be one of the
country’s biggest grocery distributors and largest
organisations.
CURRENT LEASE TERM
LEASE TYPE
15 years
NEXT EXPIRES 16th August 2028
CONTRACTED RENT
OPEX
OPEX (NON-RECOVERABLE)
RENT REVIEW
Net
$792,514
$117,873
$3,559
The lease provides for annual rent reviews:
• +3% from years 2-5
• To market in year 6 (no less than $672k + GST)
• +2.5% years 7-10
• To market in Year 11 (hard ratchet)
• +2.5% in years 12-15 and thereafter, excluding
market review dates
RIGHTS OF RENEWAL
3 x 5 years and a further 1 x 4 years and 364 days
Source: https://www.foodstuffs.co.nz/about-foodstuffs/who-we-are/
P35

TENANT 2 SMITHS CITY
KEY LEASE TERMS
TENANT
NET LETTABLE AREA
Smiths City Southern Limited
2,231m 2 (approx.)
LEASE COMMENCEMENT 8th August 2013
Smiths City was founded in 1918 and has been long
established as a successful and profitable retail
trading operation. Smiths City offers a range of home
appliances, home furnishings and home heating
products. It currently operates 30 Smiths City retail
stores and 4 Clearance Centre stores with all stores
being situated in high profile locations in major towns
and cities across the country.
CURRENT LEASE TERM 5 years
NEXT EXPIRES 7th August 2021
LEASE TYPE
Net
CONTRACTED RENT $346,673
OPEX
$90,611
RENT REVIEW
On the 2nd anniversary of the initial lease term, rent
reviewed to lesser of CPI and Percentage adjusted rent
(rent payable immediately before review date multiplied
by 1.0609%) and then market rent reviews on each
renewal date
RIGHTS OF RENEWAL
3 x 3 years
Source: https://smithscitygroup.co.nz/about-us/

TENANT 3 KITCHEN THINGS
KEY LEASE TERMS
TENANT
NET LETTABLE AREA
Kitchen Things Auckland Ltd.
1,003m 2 (approx.)
LEASE COMMENCEMENT 29th October 2013
Kitchen Things is a retail appliance store, established
in 1988 and 100% New Zealand owned and operated
with a network of 17 stores nationwide. As a kitchen
specialist, it offers a complete range of premium
appliance brands all presented in an attractive lifestyle
setting in its kitchen showrooms.
CURRENT LEASE TERM 8 years
NEXT EXPIRES 28th October 2021
LEASE TYPE
Net
CONTRACTED RENT $166,153
OPEX
$40,725
RENT REVIEW
Annual CPI reviews with market reviews on renewal
RIGHTS OF RENEWAL
1 x 6 years
Source: https://www.kitchenthings.co.nz/about-us
P37

TENANT 4 REPCO
KEY LEASE TERMS
TENANT
NET LETTABLE AREA
GPC Asia Pacific
698m 2 (approx.)
LEASE COMMENCEMENT 29th January 2015
Repco has been known for its high-quality products and
customer service for over 95 years and is the number
one automotive aftermarket retailer in Australasia. It has
over 400 stores and 4,000 staff in its network across
Australia and New Zealand. It’s partnership with GPC,
one of Asia Pacific’s largest automotive suppliers, has
allowed Repco to grow and expand significantly and
quickly within the Australia, New Zealand and Asia
Pacific markets.
CURRENT LEASE TERM 9 years
NEXT EXPIRES 28th January 2024
LEASE TYPE
Net
CONTRACTED RENT
$120,000
OPEX (RECOVERABLE) $25,899
OPEX (NON-RECOVERABLE) $2,441
RENT REVIEW
Annual CPI reviews with market reviews on renewal
RIGHTS OF RENEWAL
1 x 6 years
Source: https://www.repco.co.nz/en/about-us

P39

PROPERTY THREE
PROPERTY 3 HOROWHENUA MOTOR COMPANY
SITE
AREA
NET LETTABLE
AREA
NET RENT
PER ANNUM
NUMBER
OF TENANCIES
4,298m 2
(approx.)
3,270m 2
(approx.)
$230,919
(approx.)
1
PROPERTY DESCRIPTION
This property is occupied by a single tenant operating a car dealership for new KIA and
Suzuki vehicles and the sale of used vehicles. It is situated on the northwest of the centre
benefiting from high profile street frontage to Kāpiti Road. The building includes an internal
showroom, partitioned offices, storage and staff amenities and workshop space plus there
is a large external yard utilised for displaying cars.
General construction detail includes reinforced concrete floors and steel portal framing with
predominantly long run metal cladding and incorporating retail glazing.
FINANCIAL SUMMARY
TOTAL CONTRACTED RENT
LESS TOTAL OPEX & RATES
$230,919
Outgoings charged as/when incurred

ABOUT THE TENANT HOROWHENUA MOTOR COMPANY
KEY LEASE TERMS
TENANT
NET LETTABLE AREA
HMC Kāpiti Limited
3,270m 2 (approx.)
LEASE COMMENCEMENT 1st July 2014
Horowhenua Motor Company (HMC) Kāpiti is a family
owned and operated car dealership, established on the
Kāpiti Coast in 2009. HMC has roots that date back to
1928, previously known as Wrightcars situated in Levin.
CURRENT LEASE TERM 9 years
NEXT EXPIRES 30th June 2023
LEASE TYPE
Net
CONTRACTED RENT
$230,919
NLA Breakdown (m 2 )
Total NLA 3,270 m 2 which includes the below:
CAR YARD 1,370
SHOWROOM 1,087.7
TOTAL 2,457.7
OPEX
Outgoings charged as/when incurred
RENT REVIEW
Market rent reviews every 3 years and on renewal
(soft ratchet)
RIGHTS OF RENEWAL
1 x 6 years
Source: https://www.hmcKāpiti.co.nz/about.html
P41

PROPERTY FOUR
PROPERTY 4 IS THE LESSORS INTEREST IN A CALTEX FUEL
SERVICE STATION GROUND LEASE
SITE
AREA
4,176m 2
(approx.)
NET RENT
PER ANNUM
$87,342
(approx.)
TENURE
Freehold
(Lessor’s Interest)
PROPERTY DESCRIPTION
The 3,205m 2 (approx.) site is ground leased to Corvus Kāpiti Coast Limited on a current
lease term of 10 years. The land is utilised as a Caltex-branded service station. The property
benefits from extensive frontage to Kāpiti Road situated adjacent to the northern boundary
of Property 5 (vehicle servicing) and to the western boundary of Property 3 (Horowhenua
Motor Company). All improvements on the site are owned by the tenant.
FINANCIAL SUMMARY
TOTAL CONTRACTED RENTAL INCOME
LESS TOTAL OPEX & RATES
$87,342
Outgoings charged as/when incurred

ABOUT THE CALTEX BRAND THIS PROPERTY IS A PRIVATELY OWNED CALTEX-BRANDED SERVICE
STATION UNDER A FUEL SUPPLY AGREEMENT BETWEEN CORVUS KAPITI COAST LIMITED AND CALTEX
KEY LEASE TERMS
TENANT
Corvus Kāpiti Coast Limited
NET LETTABLE AREA
3,205m 2 (approx.)
LEASE COMMENCEMENT 1st December 2016
The Caltex brand has been operating in New Zealand
since 1963 and has more than 140 service stations and
70 truck stops around the country all locally operated.
Caltex is a petroleum brand name of the Chevron
Corporation used in more than 60 countries in the
Asia-Pacific region, the Middle East and Southern Africa.
CURRENT LEASE TERM 10 years
NEXT EXPIRES 30th November 2026
LEASE TYPE
Ground Lease
CONTRACTED RENT $87,342
OPEX
Outgoings charged as/when incurred
RENT REVIEW
Annual CPI and market reviews on renewal
RIGHTS OF RENEWAL
4x5 years plus 1x4 years and 364 days
P43

PROPERTY FIVE
PROPERTY 5 AUTOMOTIVE SERVICES
SITE
AREA
NET LETTABLE
AREA
NET RENT
PER ANNUM
NUMBER
OF TENANCIES
2,836m 2
(approx.)
1,044.3m 2
(approx.)
$171,224
(approx.)
3
PROPERTY DESCRIPTION
This property includes three automotive workshop units, situated on the north-western
periphery of the retail centre.
The largest of the tenancies is leased to a car workshop including workshop space, reception
area, offices and staff amenities. This tenancy also has a specified yard area of approximately
150m 2 with 10 car parks. The two smaller tenancies are both workshop units with kitchenettes
and partitioned toilets.
General construction materials includes reinforced concrete floors, steel portal framing and
predominantly long run metal walls and glazing.
FINANCIAL SUMMARY
TOTAL CONTRACTED RENTAL INCOME
PLUS RECOVERABLE OPEX
TOTAL GROSS INCOME
LESS TOTAL OPEX
TOTAL NET INCOME (approx.)
$171,224
$27,574
$198,798
$27,574
$171,224

TENANT 1 MOMENTUM LIMITED T/A A GRADE AUTOMOTIVE
A Grade Automotive is a locally owned mechanic
shop servicing all makes and models of cars as well
as being the Nissan and Isuzu parts and service agent
for the Kāpiti Coast. A Grade specialise in Japanese
and European vehicles.
KEY LEASE TERMS
TENANT
Momentum Limited
NET LETTABLE AREA 611.1m 2 (approx.)
LEASE COMMENCEMENT 1st June 2014
CURRENT LEASE TERM
6 years
NEXT EXPIRES 31st May 2020
LEASE TYPE
CONTRACTED RENT
OPEX
Net
$81,723
$14,890
RENT REVIEW
CPI + 1% every two years and market rent reviews on
renewal dates (hard ratchet)
RIGHTS OF RENEWAL
1 x 3 years
Source: https://mechanicsKāpiti.co.nz/about-us/
P45

TENANT 2 DC TRADING LIMITED T/A COOPER TYRES
Cooper Tyres is a specialist family run tyre shop with
a network of 24 stores nationwide. It services a wide
range of vehicles including the family car, commercial,
trade, fleet and performance cars.
KEY LEASE TERMS
TENANT
NET LETTABLE AREA
DC Trading Limited
220.5m 2 (approx.)
LEASE COMMENCEMENT 29th November 2019
CURRENT LEASE TERM
2 years
NEXT EXPIRES 28th November 2022
LEASE TYPE
CONTRACTED RENT
OPEX
Net
$46,465
$6,342
RENT REVIEW
CPI + 2% annually and market rent reviews on renewal
dates (hard ratchet)
RIGHTS OF RENEWAL
2 x 3 years
Source: https://coopertyresKāpiti.co.nz/about-us/

TENANT 3 THE ROOF BOX COMPANY
The Roof Box Company has been in the roof rack
business for over 15 years. It is New Zealand’s premier
importer of Hapro roof boxes which are designed and
manufactured in Europe. Its products include reliable
and durable car roof racks and roof boxes.
KEY LEASE TERMS
TENANT
The Roof Box Company Ltd.
NET LETTABLE AREA 212.7m 2 (approx.)
LEASE COMMENCEMENT 1st November 2018
CURRENT LEASE TERM
4 years
NEXT EXPIRES 31st October 2022
LEASE TYPE
CONTRACTED RENT
OPEX
Net
$43,036
$6,342
RENT REVIEW
CPI + 2% annually and market rent reviews on renewal
dates (hard ratchet)
RIGHTS OF RENEWAL
1 x 2 years
Source: https://www.roofbox.co.nz/pages/about
P47

PROPERTY SIX
PROPERTY 6 PLACEMAKERS
SITE
AREA
NET LETTABLE
AREA
NET RENT
PER ANNUM
NUMBER
OF TENANCIES
1.130ha
(approx.)
7,043.45m 2
(approx.)
$514,857
(approx.)
1
PROPERTY DESCRIPTION
PlaceMakers comprises a large retail store and yard along with 81 car parking spaces built
on 1.13 hectares of land (approx.). The main improvements are divided into a main retail area,
offices including a mezzanine and drive through warehouse space. This property has been
recently built and incorporates modern construction materials including reinforced concrete
flooring, timber mezzanine flooring with steel portal framing and timber/steel framing in
the mezzanine. The external walls include precast concrete slabs with metal cladding and
retail shopfront glazing.
FINANCIAL SUMMARY
TOTAL CONTRACTED RENTAL INCOME
PLUS IMPROVEMENTS RENT (PAYABLE FOR INITIAL TERM)
PLUS RECOVERABLE OPEX
TOTAL GROSS INCOME (approx.)
LESS TOTAL OPEX
TOTAL NET INCOME (approx.)
$506,634
$8,223
$70,973
$585,830
$70,973
$514,857

ABOUT THE TENANT PLACEMAKERS
KEY LEASE TERMS
TENANT
Fletcher Distribution Limited
NET LETTABLE AREA
7,043.45m 2 (approx.)
LEASE COMMENCEMENT 26th May 2017
PlaceMakers is the trading name of Fletcher Distribution
Limited, the retail trading arm of Fletcher Building
Limited in New Zealand and is one of New Zealand’s
leading suppliers of building materials and hardware.
It has an extensive network of 61 stores and employs
over 2,100 people and serves over 300,000 customers
annually. PlaceMakers sell over 74,000 product
lines from concrete to paint and plasterboard and
manufacture frames and trusses from 8 manufacturing
plants nationwide.
CURRENT LEASE TERM
LEASE TYPE
CONTRACTED RENT
OPEX
9 years
NEXT EXPIRES 25th May 2026
Net
$506,634
(In addition, Improvements
Rent of $8,223.47 pa + GST
is payable for the Initial Term)
$70,973
RENT REVIEW
NLA Breakdown (m 2 )
OFFICE 404.25
WAREHOUSE 1,700.50
TRADE HALL 745
YARD 4,193.70
TOTAL 7,043.45
1.045% increase every 3 years and market reviews on
renewal with 20% cap (soft ratchet) and at second renewal
15% cap (hard ratchet)
RIGHTS OF RENEWAL
3 x 6 years
Source: https://www.placemakers.co.nz/about-us/
P49

Stage Two comprises up to three separate future development
land parcels. The opportunity is to either work with the owner,
Templeton Retail, in a structured or joint ventured arrangement
to lease, deliver and then purchase future retail developments
or as an investor to purchase future retail developments on
completion. All three land parcels are close to the existing
Mitre 10 Mega, New World, Smiths City, Kitchen Things and
Repco stores and upon completion will significantly enhance
the retail offering at Kāpiti Landing.
THE PROPERTIES STAGE TWO
Stage Two land parcels are not available for acquisition as
vacant development land.
Templeton Retail is already undertaking extensive planning
work to secure future retail tenants for Stage Two and a number
of high-profile tenants are already in discussion regarding
new premises.
PARCEL 1 PARCEL 2 PARCEL 3
1.3266ha 4,294m 2 6,730m 2
(approx.) (approx.) (approx.)
P51

PLANNING OVERVIEW

The Kāpiti Coast District Council is currently operating under
two District Plans with both the Operative District Plan (ODP)
and the Proposed District Plan (PDP) appeals version 2018
having legal effect. Rules in the PDP that are not subject to
appeals must be treated as operative and the corresponding
ODP rules fall away.
The properties are zoned “Airport” under the PDP. Within the
Airport zone, the landholdings are further classified as being
within the Airport Mixed Use Precinct. The aim of this is to enable
non-aviation business and commercial activity in this area.
Permitted activities in the Airport Mixed Use Precinct include:
• Aviation activities and aviation service activities
• One motel/hotel activity
• Industrial activities
• Trade/wholesale
• Commercial activity (including logistics or distribution)
provided that retail activity shall be limited to:
— Retail activity ancillary to industrial or Warehousing
activities in the Precinct
— Large Format Retail activity
— Home Improvement Retail activity
— Automotive and Marine Equipment Retail activity
— Small Scale Convenience Retail activity
— Small Scale Commercial Services activity
— Retail activity permitted by the definition of
Service Station
Maximum height within this Precinct is 15 metres for any
building that is used for industrial, logistics or distributional
purposes, and 12.5 metres for all other purposes. Provided
that the maximum height shall be 10 metres within 50 metres
of any Rural or Residential Zone or within 50 metres of the
southern side of the Kāpiti Road reserve.
Maximum building coverage is 75% within the Precinct with
the remaining 25% being permeable to water and landscaped.
For more information regarding zoning, please visit
Kāpiticoast.govt.nz/yourcouncil/planning/district-plan-review/
P15
P53

EXPRESSIONS OF INTEREST
Expressions of Interest are invited for any or all individual
components of Stage One (existing 6 properties) and Stage
Two (development land).
All proposed structures may be considered as part of this EOI
process, including interest on both stages together involving the
immediate purchase of all Stage One parcels and commitment
by way of a development agreement or joint venture to purchase
all future developments in Stage Two.
The deadline for receipt of offers or expressions of interest is
4pm (NZST) Wednesday 1st April 2020 (unless sold prior), and
purchasers have full flexibility on both the terms of their offer/
EOI and on which components they wish to bid. Expressions
of Interest or offers are to be lodged at the offices of Colliers
International, Level 27, 151 Queen Street, Auckland, or by email
via one of the appointed agents.
SALE PROCESS
DUE DILIGENCE
This Information Memorandum provides preliminary information
to assist interested parties with their assessment of the offering.
Further information is available via an online data room which
can be accessed upon execution of a Confidentiality Agreement.
Please request data room access directly through one of the
Colliers International agents.
Please ensure you refer to the Colliers International data room
for the most up to date property information.
For any data room queries, please contact:
ASHLEY BAIRD
Analyst
DDI: +64 9 356 8815
ashley.baird@colliers.com
All enquiries, requests for information and arrangements to
undertake inspections in relation to this opportunity are to
be directed to the sole agents, Colliers International Limited:
JASON SEYMOUR
+64 21 607 999
jason.seymour@colliers.com
PETER HERDSON
+64 21 654 323
peter.herdson@colliers.com
RICHARD FINDLAY
+64 21 620 188
richard.findlay@colliers.com
DEAN ANDERSON
+64 21 244 2931
dean.anderson@colliers.com

SOURCES:
- Kāpiti Coast District Council: Visiting Kāpiti; https://www.kāpiticoast.govt.nz/our-district/visiting-kāpiti/ (Page 17)
- Kāpiti Coast District Council: Long Term Plan 2018-38; https://www.kāpiticoast.govt.nz/media/27741/final-part-11-intro-our-direction-2018-38-ltp-web-version.pdf (Page 17)
- NZTA: Transmission Gully Motorway; https://www.nzta.govt.nz/projects/wellington-northern-corridor/transmission-gully-motorway (Page 19)
- The Mackays to Peka Peka Expressway; https://www.nzta.govt.nz/projects/wellington-northern-corridor/mackays-to-peka-peka/ (Page 21)
- The Peka Peka to Ōtaki Expressway; https://www.nzta.govt.nz/projects/wellington-northern-corridor/peka-peka-to-Ōtaki-expressway/ (Page 21)
- REINZ Statistics Portal – Median Sale Price for Paraparaumu Ward (Pages 23-25)
- Infometrics: Kāpiti Coast District Economic Profile; https://ecoprofile.infometrics.co.nz/kāpiti%2Bcoast%2Bdistrict (Pages 23-25)
- Forecast ID: Kāpiti Coast District Population Forecast; https://forecast.idnz.co.nz/kāpiti (Pages 23-25)
DISCLAIMER: This Information Memorandum has been prepared solely for information purposes in order to assist interested parties in making an initial evaluation of the property and
does not constitute advice nor purport to contain all of the information that a prospective purchaser may require. In all cases interested parties must conduct their own investigation and
analysis of the property and the data set out in this Information Memorandum to satisfy themselves in all respects and not rely on the information in this Information Memorandum to
make their purchasing decision. This Information Memorandum has been prepared in good faith and with due care by Colliers International, but neither Colliers International nor the Owner
accept responsibility hereunder for the accuracy of any part of the information contained in this Information Memorandum. Therefore the recipient/s of this Information Memorandum to
the extent that they rely on the information contained herein do so entirely at their own risk. The Owner and Colliers International NZ Limited (and its brokers) expressly disclaim all liability
for representations, express or implied, contained in, or for omissions from, this Information Memorandum or any other written or oral communication given to any prospective purchaser
in the course of their evaluation and/or offer. This Information Memorandum does not constitute an offer for sale or purchase or otherwise.