DNZ Property Fund is buying land at the proposed Westgate Town Centre development in northwest Auckland.
The fund is paying $25 million for the land which has a resource consent to build a 34,000 square metre enclosed shopping centre.
The proposed Westgate Town Centre is a 56-hectare development which will include a new library, bus stops, parks and town square as well as commercial properties.
DNZ chairman Tim Storey says the company is buying only the land for the planned shopping centre, and will then look at developing and owning the project.
Mr Storey says the purchase is conditional and expected to be settled next month.
He says it will be funded through bank debt but the board will look at other funding options including capital raising.