Newmarket wants 'visionary' development on Lion site

Media release

Newmarket Business Association

Monday, 18 July 2011

Newmarket wants 'visionary' development on Lion site

Newmarket Business Association Chief Executive, Ashley Church, is cautiously welcoming unconfirmed rumours that Lion has sold its Newmarket brewery site for more than $70 million and is urging the new owners to 'show vision' in any proposed redevelopment of the site.

The property was put back on the market last year after a previous deal to sell to a joint venture involving AMP Capital Investors and Saudi-based fund manager Haumi Development fell over when the joint venture was unable to settle and forfeited its $50m deposit. However, speculation is rife that Lion has now agreed to sell the property to an entity associated with Australia's Goodman Group for between &70m and &80m.

Mr Church describes Goodman Property Trust, an NZX listed company associated with Goodman Group, as a responsible property developer and says the news, if true, could be extremely positive. However, he says it is crucial that any new owner of the 5.4h site sees it in the broader context of the future development of Newmarket and the opportunities that presents.

"Over the next 5 years Newmarket will consolidate its position as the most important business centre in New Zealand - so, right now, this is probably the most valuable piece of developable real estate in the country. There is a huge opportunity to show real vision and utilise it in a way which will be both profitable, and will have major economic and social benefits. While the site obviously lends itself to a mixed use blend of retail, commercial offices, and high end housing - there are also other possibilities which would further enhance its economic viability".

Mr Church cited the inclusion of upmarket hotel accommodation and a mid-range conference centre as examples of additions which would 'take the development to the next level'.

"The proximity of the Lion site to the Domain, the Museum, and New Zealand's premium shopping, in Newmarket, make the development of a mid-range Conference Centre and accompanying medium to high end accommodation eminently logical".

Mr Church said that he looked forward to working with any new owner and that the Association would do everything it could to assist developments which enhanced Newmarket.

ends

© Scoop Media