The decision to approve the application from Woolworths’ property arm, General Distributors, was released this week by Toitū Te Whenua Land Information NZ.
The cumulative lease of the Hornby South property on Shands Rd will cost $213,270,468 over a 15-year term.
"The applicant already leases part of the land in Hornby South for its warehouse distribution facility," the decision read.
"The distribution centre is being expanded onto the other part of the land and the existing lease is being varied and extended to reflect the larger site and facility."
The application was approved shortly after Economic Growth Minister Nicola Willis announced all options are now on the table to introduce more competition into the supermarket sector, which could include the break-up or restructuring of the two existing supermarket chains.
"It is crucial that we get this market working effectively. Doing so will deliver benefits into every shopping trolley and create new business opportunities up and down the supply chain."
Willis said there is a concern that "significant action may be required to foster genuine competition".
"I have commissioned specialist external advice on the ways in which the existing supermarket duopoly could be restructured to improve competition."
She wants an examination to see how the existing supermarket duopoly could be restructured to improve conditions, including a possible de-merger of existing brands.
The lease in Hornby was granted under the significant business assets pathway and will allow Woolworths to expand its existing distribution centre.
The lessor is Shands Road Nominees which is acting as custodian for the Shands Road Limited Partnership.
