Airport business zones flagged to fly

Artist's impression of the new Novotel Hotel outside the international arrivals area at Auckland Airport. Photo / Supplied

Development plans for an Auckland Airport business district have been released by Auckland International Airport Ltd with land it owns around the airport now designated into various new precincts.

"Our intention is to develop an Airport Business District to match the likes of Singapore, Hong Kong, Seoul and Dubai airports," says Peter Alexander, general manager property for the publicly listed airport company.

"Our compelling proposition is to develop the Airport Business District as an attractive, multi-industry and sustainable business location based around the ever-growing importance of New Zealand's largest transport hub."

Alexander said Auckland Airport had a pivotal part to play in helping Auckland realise its long-term ambitions as a global city and the airport's property development activity would play a role in that.

"With more than 18 million people passing through it each year and tipped for stronger than average growth over the next decade, Auckland Airport is a property choice with a lot going for it," he says.

"We have looked hard at all our property assets and developed a new, integrated series of logical, flexible and attractive precincts to meet different market needs and provide a home for businesses.

"Within the airport business district we have identified seven specialised precincts that focus on specific land-use types and that will cater for the varying needs of particular businesses."

The newly released development plan names the seven precincts as: The Terminal, The Landing, The Quad, Altitude, The Common, Cargo South and Cargo North.

1. The Terminal precinct will be occupied by current and future international and domestic passenger terminal buildings along with services for airport users such as hotels, parking buildings and rental cars.

2. The Landing precinct north of the international terminal and the northern runway (which is "under way and will be completed in stages") will be used for a business-park development to a concept designed by well-known US-based firm Surface Design. Land bordering Oruarangi Creek in this precinct has been earmarked as a "significant recreational asset" for the use of the public of Auckland as well as providing a link to the 100ha Otuataua Stonefields historic reserve.

3. The Quad precinct facing the eastern side of George Bolt Memorial Drive and also bordered by Tom Pearce Drive will be "the true centre of Auckland Airport commercial activity - providing a wide mix of uses to service the wider airport". It will mainly focus on office activities with some hotel accommodation and retail businesses to service these.

4. Altitude precinct, which is located to the east of The Quad and bordered by the same roads, will host "a range of commercial opportunities that showcase New Zealand's way of life to the world". It is envisaged as an entertainment, retail and education precinct focused on services to airport users, particularly tourists, and trade and airport workers.

5. The Common precinct to the east of The Quad bordered by Tom Pearce Drive will be used as a recreational and heritage area and will present "a range of opportunities for unique buildings set in a low-density natural environment".

6. The area labelled Cargo South occupies areas both sides of George Bolt Memorial Drive up to Tom Pearce Drive. "Located at the operational heart of the airport this precinct will include sites for new facilities and existing warehouse and office space."

7. Cargo North precinct is north of the international terminal facing Manu Tapu Drive and George Bolt Memorial Drive and is defined as being suitable for businesses seeking larger footprints with close proximity to ground-handling and customs services.

Alexander says the airport company has worked with renowned urban designers Common Ground Studio and Surface Design to "create a high-quality, flexible land-use plan and urban design framework".

"Our precinct designs are tailored specifically to the needs of business and aimed directly at the requirements of business owners, occupiers and employees. Our plans will result in efficient spaces that maximise the use of available land and deliver optimum commercial value for businesses in a world-class location".

Alexander says the Airport Business District offers excellent value, flexibility, security, quality and "exposure to more people than any other single location in New Zealand".

The airport company had adopted a flexible approach to property development supported by a large land bank and a strong balance sheet. "The environment is secure and offers tremendous recreational opportunities. We believe we have something to offer every business here".

Auckland Airport chief executive Simon Moutter said it became apparent when he took up his role around 20 months ago that Auckland Airport had a lot of high-quality development land available.

"It was also pretty clear that we weren't doing as good a job as we could of getting new property deals off the ground," Moutter says. "This land represents one of the best property development assets in the country, alongside the country's biggest transport hub. It offers tremendous opportunities to a wide range of industries and potential tenants."

Moutter said the lack of a clear development strategy meant the airport had been selling itself short.

"While we had a significant and strategically located land asset, until now we didn't have a coherent development plan that explained what development land we have available and what sort of businesses it would best suit. We just weren't offering enough flexibility and determination to work with the real estate industry in order to close the deals."

He says Alexander was brought in to maximise the potential of the airport property portfolio.

"We've got a good stream of deals already under way including two new hotels. But more importantly, we now have a coherent development plan to share with real estate agents," Moutter said.

Auckland International Airport Ltd is building a 12-level 260 room 4-star plus Novotel hotel immediately outside the international terminal in a joint venture with Tainui Group Holdings and Accor Hospitality. The hotel is projected to be completed in time for the Rugby World Cup next year and is running on schedule.

The three bottom floors of the hotel will host the restaurant and bar, as well as the conference facilities and function room. The first of the guest rooms starts at the third level, which is high enough to allow guests in rooms on the western side of the hotel to have a view over the terminal and see the planes taking off and landing.

The second hotel is the six-level 125 room Formule 1 Hotel which is being built by Auckland Airport around 800m from the international terminal, near the airport shopping centre on the eastern side of George Bolt Memorial Drive. Accor Hospitality will also operate this hotel which is planned for completion in time for Rugby World Cup 2011.

Moutter says airports attract businesses that feed off the enormous economic activity an airport generates.

"Many of these businesses are involved in supply chain management handling perishables and just-in-time manufacturing. Others are knowledge-based businesses dealing in finance, banking, information technology and telecommunications.

"Airports also attract businesses that rely on interaction and innovation coming together, like conference centres, hotels, expos, and business centres. And of course airports are natural homes for tourism, leisure and entertainment businesses."

Moutter says nearly every single industry in New Zealand is reliant in some way on air transport and the need for ease and speed when delivering goods and services.

"This means that Auckland Airport is an ideal place for people to do business and to set up business there."

Auckland Airport, which is visited by over 60,000 vehicles every day, already has more than 60 retail outlets including duty free, foreign exchange, restaurants, bars and specialty stores. Over 12,000 people are employed at the airport which covers an area of 1500ha of which more than 363ha is available for development for warehouse, office, retail and accommodation facilities including many sites with "airside proximity".

Nearly 34,000 passengers are processed every day at the airport arriving and departing on over 100 international flights and 300 domestic flights with 13 million travellers passing through airport services annually.

It's estimated that Auckland Airport generates $19 billion a year for the national economy and that 24 million passengers a year will be processed through the airport by 2025.