19 May, 2023

Firm snaps up Devonport property empire

More than 15 commercial properties in Devonport village have been bought by Peninsula Capital, which aims to refurbish them and redevelop the area over the next two decades.

The private equity firm – owned primarily by Berridge Spencer, Graham Turley and Mark Hiddleston – had already purchased the old Devonport Borough Council building at 3 Victoria Rd, with settlement due this week.

Hiddleston said negotiations began with major Devonport landlord Vista Linda Ltd a couple of months ago. Peninsula has agreed to buy all Vista Linda’s commercial properties, with settlement at the end of June.

Hiddleston wouldn’t be drawn on the purchase price, but it would easily run into the tens of millions of dollars.

The Vista Linda portfolio in Devonport includes: 5 Victoria Rd (the Devonport Pub- lic House); 7 Victoria Rd (Focus Dental); 9 Victoria Rd; 13 Victoria Rd (the Arcade); 15 Victoria Rd (Bookmark); 17 Victoria Rd (Arts and Gifts); 19 Victoria Rd (Catch 22); 21 Victoria Rd (the former ASB); 23 Victoria Rd (Blue Illusion); 25 Victoria Rd (Anna Stretton); 41 Victoria Rd (empty); 43 Victoria Rd (Ray White); 45 Victoria Rd (for- merWestpac); 24VictoriaRd(SignalHill); 1 Wynyard St (Wynyard St Motors); 12 Wynyard St (Lily); 3 Clarence St (Tiny Triumphs); 19 Clarence St (Liquorland); and 21 Clarence St (Devonport Drycleaners).

Devonport had massive potential to be both a major tourist destination – much like Sausalito in San Francisco – keeping and restoring its her- itage buildings, and at the same time working better for the local community, Hiddleston said.

With its views to the harbour and proximity to Auckland City, Devonport was “not living up to its potential”, he added.

Peninsula Capital were long-term, “multi-generational” investors, and wanted to develop a master plan for Devonport village.

After ownership transferred, a team would be created to work on the vision for Devonport and the properties. “We want to bring life back into the village,” Hiddleston said.

Auckland Council had created a “beautiful building” in Devonport Library and Peninsula Capital wanted to return the heritage buildings opposite to top-class standard.

The master plan would likely take three or more years to complete and “would be the catalyst to start a rejuvenation of downtown Devonport”.

Given the complexities of the portfolio and the need for significant earthquake-strengthening, redevelopment would probably be five or more years away, Hiddleston said.

While no plans had been made, it would make sense to combine restoration of the commercial buildings with a residential component behind them, Hiddleston said.

Vista Linda principal Antonio Regueiro-Diaz had amassed an amazing portfolio of Devonport property, Hiddleston said. However, the death of Regueiro-Diaz last year meant his dream of redeveloping the village was unfulfilled. This presented an incredible opportunity for long-term investors to build “a holding we are proud of”, Hiddleston said.

In the short term, it was “business as usual” for current tenants, he said.

Asked if Peninsula Capital was seeking to buy further properties in the village, Hiddleston said it was interested to talk to other landlords about the vision for the town centre, but was not “ knocking on doors” to buy.