Constellation Brands leases quarter of NorthWest Two

9 November 2015

Constellation Brands leases quarter of NorthWest Two

New Zealand’s largest wine company, Constellation Brands New Zealand Ltd, has signed an unconditional agreement to lease 2,200m² of office space at NorthWest Two. Construction of NorthWest Two at Westgate Town Centre is underway and progressing well. Stride expects to open the development in October 2016.

Comprising 142m² of ground level retail space and over 2,000m² of office space the agreement secures 25 per cent of the expected annual rent for the NorthWest Two project. The agreement has an initial lease term of 10 years and two further terms of five years each.

Northwest Two is opposite the recently opened NorthWest Shopping Centre. It will comprise four separate buildings that give around 7,700m² of additional dining, retail and office space in a purpose-built main street retail environment.

Stride’s Chief Executive Peter Alexander welcomed the signing of the agreement with Constellation Brands and said that interest in the new development had been very strong.

“The NorthWest Two project is designed to meet the needs of businesses and the growing communities of Northern and Western Auckland,” he says. “It is a complementary offering to the recently opened NorthWest Shopping Centre, which has proved to be a very popular destination for people from all over the Auckland region.”
“Constellation Brands is well suited to the location and for the environment we are creating. When NorthWest Two is completed there will be a diverse range of shopping and dining options as well as modern office spaces, with direct access to high quality amenities” Mr Alexander says.

Constellation Brands sold its historic Huapai site following a change in land zoning which designated it as a special housing area. The company selected NorthWest Two as the location for its new head office after taking into account its location, commuting time for its employees and the amenities available to them, in particular available parking. It also wanted to retain a close connection with the birthplace of New Zealand’s wine industry, West Auckland, and in particular with its two heritage brands, Selaks and Nobilo.
Managing Director of Constellation Brands, Sam Glaetzer, said that remaining connected to the region was a key factor for them as well as the ability to have a custom-built working environment for the company.

“Stride Property has provided us with a fantastic opportunity to integrate our requirements into the new Westgate development. The premises to be built for us mean we can stay connected with our West Auckland wine region heritage while enhancing our professional presence as New Zealand’s leading wine company,” Mr Glaetzer said.

Stride estimates NorthWest Two will cost approximately $37m to complete and that it will give a minimum yield of seven per cent. It is funding the development through the sale of non-core assets.

Ends.

© Scoop Media