Manawatu Retailer Secures Lease For Flagship Store

MEDIA RELEASE

19 June 2008

Manawatu Retailer Secures Lease For Flagship Store In The Plaza

Kiwi Income Property Trust today announced that a well-known Manawatu retailer has secured a lease for a flagship surf-wear and accessories store called Main Beach in The Plaza redevelopment in Palmerston North.

Lee Yates has signed an eight-year lease for 350m2 of space in Stage One of the redevelopment which includes a 450-seat food precinct and a three-storey car parking building.

Scheduled to open in early 2009, the Main Beach store will be situated in a prime corner location near the food precinct and fronting onto the pedestrian walkway linking Countdown and Kmart.

The new store will be almost double the size of the Main Beach store on The Square and more than one-third larger than the combined area of the three stores owned by Mr Yates and his business partner Donald Hall in the existing Shopping Centre, being Main Beach, Borderline which offers a line of surf-wear for the youth market, and Alcatraz, a ‘street fashion’ outlet.

The new lease by Main Beach, formerly trading as Colorado Surf, continues Mr Yates’ long association with The Plaza which began with the Jean Zone store in April 1991 soon after the name of the Shopping Centre was changed from PDC Plaza.

Chief Executive of the Manager of the Trust, Angus McNaughton, said “the lease agreement is great news because it signals a realisation among retailers that premises becoming available in the redeveloped Shopping Centre present significant new business opportunities.

“There has been strong interest from retailers in the redeveloped Shopping Centre with space to be created for another 40 specialty stores, increasing the total number of specialty stores to around 100,” Mr McNaughton said.
“On a sales-per-square-metre basis, The Plaza is the strongest performer in the Trust’s retail portfolio and the $93 million redevelopment project will increase the area of the Shopping Centre by nearly 60% to 31,200m2,” he said.

Mr Yates said “it makes commercial sense to sell our full range of fashion apparel from one large store in the redeveloped Shopping Centre because marketing synergies and operational efficiencies can be achieved. Top surf-wear brands in the Main Beach range include Quicksilver and Rip Curl.

“The new flagship store will help Main Beach consolidate its position as the leading surf-wear retailer in the Manawatu,” he said.

ENDS

For further information please contact
Angus McNaughton
Chief Executive
Kiwi Income Properties Limited
DDI: 64 9 359 4011
Mob: 64 21 946 157

About Kiwi Income Property Trust
Kiwi Income Property Trust’s objective is to optimise returns for its Unit Holders through the careful acquisition, development and professional management of its property portfolio. The Trust is listed on the New Zealand Stock Exchange and is ranked within the top 15 on the NZX 50 Index, and is a member of the NZX 10 Index.

The total value of the Trust’s assets is $2.1 billion. Assets include:

Key Office Assets
Vero Centre Auckland
National Bank Centre Auckland
21 Pitt Street Auckland
Majestic Centre Wellington
Unisys House Wellington
BP House Wellington
Vector Building Wellington
PricewaterhouseCoopers Centre Christchurch

Key Retail Assets
Sylvia Park Shopping Centre Auckland
Northlands Shopping Centre Christchurch
Centre Place Shopping Centre Hamilton
Downtown Plaza Shopping Centre Hamilton
North City Shopping Centre Porirua
The Plaza Shopping Centre Palmerston North

Kends

© Scoop Media