KEY POINTS:
The Auckland City Council has paid $40.5 million for two large parcels of land to provide greater public access to the Auckland waterfront.
The adjoining sites, totalling 3.3ha, are near the old America Cup bases and several new exclusive apartments blocks on Halsey St.
It is the largest purchase of waterfront land since the council paid $54 million for Westhaven Marina in 2004.
Mayor Dick Hubbard last night said the buy would enable the council to influence the development of the land, which is part of the huge Tank Farm waterfront development taking place over 20 years.
The land could be used for some kind of water development, open space or public buildings, he said.
"This piece of land gives us another toe in the water along the water's edge with a view to introducing some magic to the area."
The council has bought the perpetual leases for the two properties from TransTasman Properties.
It paid $24.5 million for the largest block, now used for a mixture of purposes, and $16 million for a second block occupied by Southern Spars.
The land is owned by Ports of Auckland, which is owned by Auckland Regional Holdings. ARH is the investment arm of the Auckland Regional Council.
Mr Hubbard said the council, acting on advice of its Property Enterprise Board, believed the leasehold sites were the largest piece of private land that would become available in the 35ha Tank Farm site.
The council's property fund, set up for 10 years for strategic land purchases in places like the Tank Farm, paid for the land.
Board chairman John Wells said the price reflected the site's market value and strategic position.
Auckland City and the ARC are nearing agreement on the Tank Farm development and its funding.
One of the first jobs is to build an entertainment strip along Jellicoe St by Viaduct Harbour in time for an estimated 60,000 international visitors for the 2011 Rugby World Cup.
