Prime sites with great neighbours in burgeoning Manukau

Two freehold developments are for sale at 736 Great South Rd and 6 Lakewood Court. Photo / Supplied

Two neighbouring prime freehold redevelopment sites in a food-retail hub next to Rainbow's End - a stone's throw from Manukau's city centre - will go under the hammer next month as part of Colliers' July Metro auction portfolio.

The two properties, at 736 Great South Rd and 6 Lakewood Court, which can be purchased individually or together, are being marketed by Peter Kermode and Steve Ball of Colliers International and will be auctioned at 11am on July 20, unless sold prior to that date.

"Manukau is in major growth mode and these two properties are well placed to benefit from the development of the area," Kermode says. "New rail infrastructure and education campuses are within close walking distance and a retail centre and new conference centre are right next door to the properties."

Kermode says Colliers is fielding interest in the properties from a spectrum of potential buyers, including car-service providers, accommodation facilities, food retailers, community groups, medical-centre operators and even a gym operator.

"The companies that have approached us are interested because the sites are near to the Manukau CBD, the southern motorway and the new surrounding infrastructure."

The building at 736 Great South Rd, occupies a 2403sq m site between a KFC restaurant and a new retail development which is under construction. The building is set up as a 580sq m bar and grill, with 300sq m of space on the ground level, a 190sq m mezzanine, a 70sq m deck, storage space and 36 carparking spaces.

Marketed on behalf of John Dell Enterprises, the property has until recently provided an annual net rental of $178,790, which will continue as holding income until September 21.

"With wide frontage to Great South Rd, 100m off the Manukau State Highway 1 off-ramp and 200m from Manukau's CBD, this is a prime spot," says Kermode. "The property itself has had a licence for 18 pokie machines and it could continue to be used in its current form as a bar and grill, although refurbishment will be required. However, given the new retail centre that is coming out of the ground next door, the main opportunity here could be to redevelop the existing property or explore a wide range of alternative uses."

The second property next door, 6 Lakewood Court, is being marketed for Rogers & Israel. The vacant 490sq m building occupies a 2845sq m site with 42 carparking spaces.

Both properties are zoned Business 4 under the Auckland City Operative District Plan 1999, which permits low- to medium-intensity light industrial and service uses.

Ball says Business 4 zones are often near to residential areas, which offers strong opportunities for retail development. "The zoning will permit, for example, drive-thru fast-food outlets, medical, community and childcare centres, vehicle servicing and a service station, or even convenience retail."

Ball says construction work has started on a retail development adjoining both of the properties at the main traffic junction at 726 Great South Rd, and the 736 Great South Rd site could be redeveloped to maximise the potential next door.

"The new retail centre is due to be completed in August and is already 40 per cent pre-leased to tenants including a bank, restaurant and other food retailers. Combined with Denny's, Valentines and KFC restaurants in the cluster, the location is becoming a Manukau dining mecca."

Another notable neighbour is the Dream Centre Cultural and Convention Centre, which includes a youth-activity centre. "The Dream Centre opened last year, providing socially beneficial programmes and events for people across the city including dance, arts and crafts and a cultural market. It will be promoted as a major cultural focus during the Rugby World Cup."

The Dream Centre has eight convention venues with a combined seating capacity of 1700 people. Each auditorium has stage, multimedia and audio-visual services with theatre lighting.

"It is already a popular and busy conference location, drawing thousands of people every week."

Kermode says the precinct also attracts customers from the Rainbow's End amusement park on the neighbouring block, and from the SH1 motorway only 100m away, as well as from the 28,000 vehicles passing every day along Great South Rd.

Statistics New Zealand projects that Manukau will be home to 526,000 people in 2031, and that the city will surpass Christchurch as the second most populous territorial authority in the country.