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The largest slice of undeveloped Auckland land is on the market just two years after it changed hands - and its owner could make $50 million on the deal.
Rodney mayoral hopeful and Cornerstone Group founder Rick Martin has launched an international tender to sell more than 40ha of bare land in Albany.
He bought the block from Neil Group in 2005 for $250 million and could get $300 million now, since leasehold title has been created on the block and developers have hatched plans to build a centre with high-rise towers.
CB Richard Ellis is marketing the tender, which closes on March 29. Scott Gray-Spencer, of the property agency's Sydney office, said he'd already had a lot of interest in the block, which is between the North Harbour Stadium, the Northern Motorway and Massey University.
Martin secured ownership of the block in a leasehold deal, meaning Cornerstone - and now the new buyer - would always own the land, separating the property's real wealth from the grip of those who eventually buy there.
Developers associated with the former Chase Corp bought the leasehold interest from Martin and will soon build - then sell - apartments, shops and offices. But those buyers will never own the land, where the true value lies. Martin said he could pay such a high price for the land because his leasehold formula allowed him to extract money before the first sod was turned.
Martin, 48, who built Orewa's much-criticised Nautilus high-rise apartment block and three large leaky apartment complexes, said he was considering a new future. He wanted to take over the mayoralty from John Law, saying he would campaign on more growth for Rodney and for the Government to take responsibility for the leaky building scandal.
But that has brought a backlash from critics who have accused him of trying to get into local government only to further his business interests.
His land is earmarked to be the hub of Albany City, a centre for up to 55,000 people by 2021. Yet the empty block of land is ringed by a largely deserted circular road.
Over the past three decades, the vast undeveloped centre of Albany has become a pass-the-parcel prize, traded between a series of owners from the Government, to Neil, then Cornerstone and soon someone new. Its destiny now lies with the Environment Court, about to decide its fate.
Martin expects his 30-level Sentinel apartment tower at Takapuna to be finished by Christmas and said work was ahead of schedule on the block being built by Multiplex.
He is also promoting his Silverstone Business Park on a 50ha site inland from Orewa, where he says 2000 people will eventually work. He has 22 sites from 2186sq m to 18,878sq m and is selling leasehold interests.
Settlement on these sites is due next year. A further 35 sites of 2836sq m to 13,024sq m will be sold next October, with settlement due in 2009.
The rent will be reviewed every seven years and calculated at 6 per cent of the freehold land value. He is leasing the sites on perpetually renewable 21-year terms.
Martin said his Cornerstone had developed and sold property worth $420 million.
Tendering Albany
* Cornerstone Group is selling out of Albany.
* The tender is being run from Sydney.
* Offers are due by March 29.
* A freehold interest is being sold.
