Faradays plans three-storey $30m luxury department store on Auckland’s Queen St

“We’re thrilled to be creating something extraordinary – a department store reimagined from the ground up, to set a new standard for retail in New Zealand.”

Von Dadelszen confirmed upwards of eight figures would be spent renovating the interior of the heritage-listed Milne & Choyce building, once home to one of the first department stores in New Zealand.

A 12-year lease has been signed for the building, showing Von Dadelszen’s long-term commitment.

Fearon Hay Architects co-founder Jeff Fearon said he was keen to progress the re-establishment of Queen St’s central city retail identity.

“131 Queen St sits in the context of the continued establishment of global brands, and the pending sea-change expected from the imminent opening of new central city stations and the connectivity of rail. These elements combine to make this project an incredibly exciting one,” Fearon said.

Hundreds of workers will be involved in the renovation effort, which is set to transform the interior of the building into three distinct retail experiences by the middle of next year.

The 1200sq m ground floor, accessible from Queen St, will span two storefronts and feature an extensive range across womenswear, menswear, childrenswear, beauty, fragrance, homeware and accessories.

Von Dadelszen said the venture would be the first time Faradays has catered to a broader market, with the business currently focused on a higher-end clientele in its store based in the Parnell Textile Centre.

He anticipates roughly 20% of the business’ revenue will come from the traditional luxury retail experience on the 1000sq m first floor, which benefits from the unique geography of the area and allows for a valet parking and concierge service.

Alongside the luxury retail and valet experience, Faradays plans to have a refined hospitality concept delivered in partnership with a leading operator, with which Von Dadelszen has already had several conversations.

The building also benefits from an 800sq m basement space, which Von Dadelszen envisions becoming a unique espresso, music bar space emulating the experience found in Dover Street Market’s store in Ginza, Tokyo.

Connecting all three floors will be a spiral staircase spanning the height of the store.

The store is expected to employ about 75 staff.

Von Dadelszen said he considered other properties for the venture but none had the appeal and associated history of 131 Queen St.

He acknowledged the responsibility of taking on the heritage site, but said he intended to honour the building’s history while taking it into the next generation.

Krukziener, who owns the building and is leading the restoration of the 1924 Art Deco site, said he had always admired the international style and quality of the Faradays Parnell store.

“Since buying the building in 2016 I envisioned an international-quality luxury retailer with a superb food and beverage offering gracing the ground, basement and first floors. Faradays will be all of this and more,” Krukziener said.

“I have done everything I could to pay homage to the history of the building by fully restoring it and repurposing it as the finest office building in the CBD and the only prime Art Deco office building in Auckland.”

Department stores have struggled in recent years, with iconic Queen St store Smith & Caughey’s closing in June after operating for 145 years.

Christchurch department store Ballantynes also admitted this week it was facing the squeeze from a difficult retail environment, which its management described as a “severe recession”.

Despite recent discouraging commentary about the state of Queen St and retail, von Dadelszen isn’t shying away.

“I enjoy pressure but this is different. In the case of Faraday’s 131 Queen St, I do feel a huge sense of responsibility in leading a team who will be not only the custodians of a very special and visible heritage building, but I also feel we’ll act as stewards for established brands as well.

“There’s a further sense of responsibility to platform emerging designers and artisans from New Zealand and abroad inside what will be a truly unique environment.”

He confirmed the original Faradays store in Parnell will be reimagined under a new team with new owners.

The business will also have a new purpose-built, online retail experience, with more details to be released on that soon.

Property investor Mark Francis is part of a consortium of financial backers funding the venture, of which von Dadelszen was unable to share any more details at this stage.

Francis said he had known von Dadelszen for 20 years, and was one of his first customers when he opened his name-brand store Dadelszen 10 years ago.

“From there, I became a seed investor in Faradays, and now it’s been great to be a part of the negotiations and investment round to secure this transformative opportunity,” Francis said.

“Seeing Faradays fulfil its potential by acquiring 3000sq m in Queen St’s most beautiful building – in what must be the largest and bravest retail tenancy transaction on the street in the past 100 years – is incredibly exciting for both Auckland and the CBD."

Despite the large scale of the project and the funding necessary for it, Von Dadelszen is confident in the opportunity that lies ahead.

“In a personal, mentorship, and stakeholder capacity I have genuinely exceptional people by my side, many of whom have been there for a long time, and I am never too proud to ask for advice or guidance, especially with an opportunity as extraordinary as this.

“This is a once-in-a-lifetime opportunity to offer something truly special to New Zealanders and visitors alike. Not just a store, but a destination. A place to discover, connect, and be inspired for generations to come. We’re thrilled to be creating something extraordinary – setting a new standard for retail in New Zealand.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.