Northland Regional Council announces sale of Kensington redevelopment to local investor
22 Jun 2021, 3:00 PM
The Kensington Crossing redevelopment, which Northland Regional Council has sold to a Whangārei-based investor.
Northland Regional Council has sold its high-profile Kensington redevelopment, which has breathed new life into a former supermarket site, to a Whangārei-based investor.
The Kensington Crossing redevelopment, situated at the corner of Kamo Rd and Kensington Ave, consists of a medical centre, dentist, gym, physio and several food outlets. It opened in late 2020, and a separately owned childcare centre at the same address is under construction. The sale went unconditional on Monday 21 June 2021.
Businesses at Kensington Crossing.
Northland Regional Council (NRC) Chair Penny Smart says council intended to keep it as a tenanted investment and use the returns to subsidise rates and council activities, unless a substantial purchase offer came forward.
“Recently several parties proactively approached council with off-market offers. A Whangārei-based investor put in a particularly strong offer and has purchased the property. Council is delighted it has remained in local hands.”
The Kensington project involved significantly refurbishing the existing building, formerly a Countdown supermarket, and splitting it into approximately a dozen tenancies. The sale price will remain confidential, and Chair Smart says the income will be used to support further redevelopments that will generate these rental returns.
“This has been a highly successful redevelopment, bringing services, activity and jobs to an otherwise underutilised location. Council plans to repeat this process elsewhere with further redevelopments within its property portfolio – at first, that’s most likely to happen in and around Whangarei’s CBD.”
There are significant benefits for Whangārei and Northland when NRC invests in further redevelopments, she adds.
“It paves the way for more businesses to establish a foothold here or expand around the region. Supporting a strong economy is a core part of our mission, and we look forward to creating more hubs of activity that will connect and service local communities.”
Council worked on Kensington Crossing with development partner Argyle Estates.