Auckland Airport to develop $NZ200m factory outlet centre

Construction work on the Nixon Road site for Auckland Airport. Picture: Greg Bowker

Popular in the stylish southern Californian desert outpost of Palm Springs, in the Tuscan capital of Florence, and also on Queensland’s Gold Coast, fashion outlet centres have swept the retail world – and are no longer seen as a dumping ground for factory seconds.

Auckland Airport is getting in on the act and is developing the Land of the Long White Cloud’s largest purpose built factory outlet centre, a $NZ200m ($185m) edifice within its airport precinct.

The development will offer 25,000sq m of retail space including a mix of premium and designer brands as well as international brands not readily available in New Zealand – and most offered at heavily discounted prices.

The southern end of the airport’s former Aviation Golf Club (holes 11-17) is being prepared for construction of the building platform, along with the installation of roads, 1400 car parks and utility services.

“This is a major milestone for a project that we’ve been dreaming about for some time at Auckland ­Airport and we’re thrilled to see earthworks get well underway,” Auckland Airport general manager property and commercial Mark Thomson said.

“Our vision is to create a landmark outlet shopping centre at Auckland Airport, offering a unique retail and dining experience and mix of high-quality international brands to visitors, with the bonus of easy transport connections right on its doorstep.

“Outlet centres are no longer places for fashion retailers to get rid of excess or factory seconds – they have evolved into leading shopping ­destinations in their own right.” ­Situated in a prime location on the northeastern side of the airport precinct, Mr Thomson said the centre would create more than 500 jobs across 100-plus stores, including a high-quality food and beverage precinct.

The centre is expected to open for business in 2024, complete with a large outdoor seating area with views over a parklike setting, mangroves and an inlet of the Manukau ­Harbour.

“Outlet centres that are located near airports overseas have proven to be an extremely robust retail asset class,” Mr Thomson said.

“Auckland Airport is New Zealand’s gateway and with the international border about to reopen, we are confident the development is going to provide an exciting addition to the airport traveller experience in the years to come.”

The centre’s retail leasing will be handled by the Colliers Retail team.

Colliers New Zealand chief executive Mark Synnott said the response from the market had been extremely strong, with leasing interest from brands looking for purpose built outlet centre developments that would deliver on quality curated space.

“There’s nothing like it in New Zealand and it’s the type of premium development centre that international brands are looking for,” said Mr Synnott.

“Outlet centres are really well ­established overseas near airports, and one of the key attractions is ­accessibility and ease of parking. Most Aucklanders can reach the ­airport within 30 minutes and everyone knows where it is, something that is very ­appealing to brands that cater for the outlet shopping market.”

During the past two years, Auckland Airport has undertaken a major upgrade of its road infrastructure while traveller numbers are lower, ­investing $NZ160m in roads around the precinct to prioritise public ­transport and enable smooth journeys for people heading to and from the ­terminals.