Stevenson Group embarks on 180ha industrial park at Drury

The land north of the new Maketu Rd interchange will be a mix of residential, commercial, industrial and public open spaces. Photo / Supplied

Coming down off Bombay Hills, curious motorists on the Southern Motorway first come across earthworks and signs of development just south of Drury village. The rural landscape in this part of the Auckland region is about to change.

By the end of this year the motorists will be able to take a diversion from the motorway and view the first stages of Drury South Crossing which will ultimately house about 2000 people and provide employment opportunities for nearly 6000 workers.

The $1 billion Drury South Crossing is the latest mixed use "live, work and play" urban development to provide much-needed housing stock and industrial space, and relieve the pressure on Auckland's relentless growth.

Stevenson Group, established more than 100 years ago as a concrete, quarrying and infrastructure business, is developing 40ha of housing, a 10ha commercial centre of shops, offices and professional services, and a 180ha industrial park — in total double the size of Highbrook.

The masterplan covers 360ha — Stevenson owns 300ha of it — that includes a Transpower switch station, new streets and extending Maketu Rd as the primary connection to the motorway. It creates 90ha of open spaces with parks, wetlands, cycle and walkways — an area one and a half times bigger than Auckland Domain.

"The masterplan has evolved over the last 13 years," says Stephen Hughes, chief executive of Drury South Crossing. "We first worked with the Papakura and Franklin District Councils and Auckland Regional Council — it goes back a long way.

"Four years ago we made a plan change and introduced affordable housing — 13 years ago the idea of people living there was more far-fetched than it is today. We also knew it would be hard to keep the industrial park functioning after hours without having the residential element."

Hughes says the demand for the industrial park, capable of taking 100 businesses, has exceeded expectation. "There are not many other options in Auckland, especially for businesses wanting more than 1ha of land. These sites are difficult to find in the existing industrial areas and pricing has increased significantly."

Industrial sites in East Tamaki have risen from $400 to $800 per sq m; Stevenson is selling for about $500 sq m. It is opening up four of the 11 blocks and titles covering 30ha will be delivered by the end of the year. A further 40ha of titles will be available during next year. Stevenson has so far sold 28 of the 41 sites on the market. Most are more than 1ha and will be owner-occupied. "We didn't expect to get to this point so fast," says Hughes. "The demand is certainly there as we work through the level of inquiry."

Most of the businesses are relocating further south, or growing out of Pukekohe and Hamilton, he says. "Available industrial sites (elsewhere) are only for tenants but businesses want to own their own decent size of land. This is the first opportunity they've had for a long time."

Through the first sales, the Drury South Crossing industrial park is shaping up as a destination for manufacturing, engineering and fabrication, logistics and warehousing.

Tauranga-based Classic Builders has been contracted to build 850 homes in the residential community called Hunua Views. The first 30 standalone houses on 300sq m sections will be completed well before the end of the year and will sell for about $600,000.

"That's relatively cheap for Auckland — it's a fantastic opportunity for people wanting a job and not having to drive anywhere," says Hughes.

"We've spent 13 years chipping away and it's a nice feeling to have had three years of earthworks and a good response from the market that people need and want."

If you look at the map, there's a lot of land to develop," says Hughes. "There are fewer opportunities in Auckland, and the wider area around Drury can become another North Shore with population of more than 200,000."