Grand Arcade undergoing 'major' refurbishment to include childcare facility

Friday, 22 September 2017

An artist's rendering of the refurbished Grand Arcade, forecast to be completed early 2019.

The Grand Arcade on Wellingtons Willis St will refurbished over the next two years, to add more big retailers and a childcare facility, but it will come at the expense of existing tenants.

Construction is due to start in March and be completed early 2019.

Real estate agents say the redevelopment would attract new international retailers to Wellington.

JLL property has managed the arcade for 20 years and will oversee the refurbishment and leasing of the space.

JLL would not comment on the cost of the work.

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JLL national director of project and development services Ben Dalton said refurbishment would include adding a 1000-square-meter childcare facility, a new facade and entrance on Willis St, moving the existing tenants, and moving the escalators in the middle of the building to bring in more natural light.

FoneBitz owner Graham Winfield, a tenant of the arcade, said he would have to move out during the year of construction and he would be moved to a smaller shop in the arcade if he returned.

He had three years left on the lease of his current shop, which he said was a 'bit big'.

He said it would be tough to find a lease for a year, and if he re-establishes himself elsewhere he probably would not want to move again in 2019.

'I want to stay pretty local, because I've got a lot of accounts that use me and they don't want to walk too far.'

Puro Chile co-owner, Rodriogo Cartagena said his empanada cafe may move upstairs during the renovations.

Cartagena expected he would lose some business during the year, and was considering opening a restaurant in Wellington with business partner Luis Guerrero to make up for lost profits.

JLL senior property manager Jared Nicholson said the arcade was in a good location but was 'not realising its potential'.

Increased interest from national and international retailers meant the timing was right for the project, Nicholson said.

'Now is the opportune time to revitalise the asset and optimise the tenancies both from a best use and tenant mix perspective.'

City Fitness will remain as the arcade's anchor tenant.

JLL agent Jon Williams said international retailers were delaying their plans for Wellington until more floor space became available.

The redevelopment would attract the new international brands 'the market [was] desperate for', he said.

The refurbishment was designed by architects Designgroup Stapleton Elliott.

The Grand Arcade building is not itself historic, but was the site of 19th century entrepreneur Baron Charles von Alzdorf's 'earthquake-proof' building.

Von Alzdorf arrived in Wellington in 1840 and owned wharves and hotels around the city.

After his first hotel was damaged in the 1848 earthquake, von Alzdorf was inspired to construct a two-storey brick hotel that he declared 'earthquake proof'.

He was killed when the building collapsed in the 1855 earthquake.