Change of direction for developer

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After owning the largest number of shops in Mangawhai for 12 years, Steve Lay is selling his Wood St shopping complex in order to concentrate on extending his Kingsview Estate subdivision.

Mr Lay, who first moved to Mangawhai in 1988 from Northcote, Auckland to purchase a farm, is without doubt one of Mangawhai’s most successful businessmen.

When he purchased the Wood St complex, one-third or six of the 18 shops were empty as many ten-ants had moved across the road to the newly built strip-shops.

“It was a risky invest-ment in those days and a bit of a brave move,“ he says.

Now Mr Lay has 15 ten-ancies (some of the tenants have combined their operation into two shops) and his annual rent roll has been advertised by his estate agent at $230,000 per annum.

The former Northcote College boy now has all his shops fully tenanted with anchor tenants such as real estate agents. Food outlets dominate the shopping complex which is spread over 3000 square metres.

“The business has evolved from what I call hobby shops in the early years to serious retailers,” he says.

Mr Lay’s shopping complex has a mix of short-term tenancies and term rentals that range from between two and 10 years.

He says that in recent years he has never had trouble renting his shops, with an enquiry a week from prospective tenants.

Some people think that rents in Mangawhai are high, but Mr Lay says that compared to other rental rates in surrounding areas they are extremely fair.

Mr Lay’s shopping complex will be auctioned in February 2015.

“I think it’s a fantastic business, but for me it’s time to move on,” he says. Mr Lay is currently planning to extend his subdivision in Kings Rd by more than a dozen sections and is reviewing other potential land and building investments.

By Peter Nicholas

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