$300m mall development set for 2013

MONEY GO-ROUND: An artist's impression of the Johnsonville development, which could move more than $44 million of spending from Wellington's city centre to Johnsonville in its first year.

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Work on a $300 million redevelopment of the Johnsonville Mall could begin as early as the middle of next year.

DNZ Property Fund chief executive Paul Duffy said planning and analysis was now being done on the project which he expected to take to the DNZ board in October or November this year.

This included looking at leasing commitments by prospective tenants, construction costs,  finance costs and the economics of the project which could effectively treble the size of the mall.

The mall now has about 10,000 square metres and the proposal would be to increased it to 32,000sqm on a two level shopping centre on the four hectare triangular block bounded by Johnsonville, Broderick and Moorefield roads.

The redevelopment would provide for better integration with train and bus services and plans include the addition of more than 800 carparks.

Wellington City Council granted consent for a two stage redevelopment in 2009 with the first phase to be started by 2014.

The mall is jointly owned by DNZ and Diversified NZ, which is managed by DNZ.

Wellington City Council officers have recommended that council bring forward plans for proposed roadworks associated with mall redevelopment and this is now being considered in its annual plan considerations.

DNZ chairman Tim Storey said this would facilitate the redevelopment of the mall which was an important project for Wellington.

The company was well advanced with its planning and was looking to start work next year although that depended on economic conditions.

''We're going to spend many millions on the redevelopment and we've got to get it right.''

Contact Hank Schouten
Property reporter
Email: hank.schouten@dompost.co.nz

- © Fairfax NZ News

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