With the North Shore's commercially zoned land fast running out, sites in north Rodney District are ripe for future business development, writes Colin Taylor
KEY POINTS:
Several strategically located land holdings in Silverdale, that could be part of much of the future business development growth north of Auckland, are a feature of Bayleys' latest Total Property portfolio.
Two blocks of land currently owned by Cornerstone Group fronting on to the Northern Motorway are for sale. One is a 59.2ha block of land currently zoned rural but identified as being potentially suitable for future business development. The other is a 54ha site in the final stages of a business rezoning process and with a first-stage earthworks consent in place.
Also on the market are two smaller blocks of land adjacent to the Snow Planet and Auckland Luge entertainment complexes.
Rod Macfarlane, a senior broker with Bayleys Real Estate's Auckland office specialising in land and subdivisions, says with most of North Shore City's industrial land already gone, and no opportunity to create more, much of the future focus on business development north of the harbour bridge is shifting to Silverdale and surrounding areas.
"Silverdale is ideally located beside the Northern Motorway without the traffic bottlenecks of Orewa and the Whangaparaoa Peninsula."
In conjunction with David Rouse of Bayleys Orewa, Macfarlane is marketing the two larger land holdings by deadline private treaty closing on June 20.
The 59ha block, known as the Gateway site, is in the centre of a 230ha triangular block of land between SH1 and SH17, with its apex at the Silverdale interchange. A report to Rodney District Council identifies the site as potentially suitable for business development and further research is being undertaken with a progress report to be presented to the council at its June meeting.
Warren Maclennan, director district strategy and planning for Rodney District Council, says recent research by the council has shown that the Hibiscus Coast has a shortage of business land.
"This means that employment and economic growth cannot match population growth. Put simply there may be a shortage of jobs for residents on the Hibiscus Coast and businesses may not be able to grow. It is clear that more business-zoned land is required."
Macfarlane says the whole of the northern Auckland region is desperately short of industrial land. The little land available in the Albany area is now fetching prices as high as $700 per square metre.
"Land on the North Shore has been priced out of the reach of most businesses requiring a significant amount of warehousing and yard space. There is an opportunity for Rodney to undertake a high-quality integrated development, not dissimilar to North Harbour Industrial Estate, which would cater for these types of businesses and stimulate employment opportunities and enable people to live and work in the area."
Macfarlane says the Gateway site would be ideal for distribution businesses, building suppliers and manufacturers.
"It is located right alongside the motorway. This makes it a short trip into central Auckland and the port off-peak. With the extension of the motorway to Puhoi it will also have good access to Whangarei and Northland."
Macfarlane says Cornerstone has produced its own independent concept plan for the Gateway site and undertaken some preliminary engineering services and traffic feasibility studies which would be available to prospective purchasers.
The other Cornerstone Group property for sale is 54.6ha in 12 titles comprising over 90 per cent of the Silverstone Business Park site and is located further north between State Highway One and Wainui Rd.
The site is in the final stages of a rezoning process to a special Knowledge Economy Business Park zoning.
"The property also has a first-stage earth work consent issued so everything is in place for a new owner to get development underway on the site in the coming earthworks season," says Macfarlane.
The proposed rezoning allows for "clean" commercial activities including office, storage, depots, warehousing, non-polluting manufacturing and high-tech industry. It also has a central strip zoned mixed-use that allows retail, residential or office complexes.
Macfarlane says the flexible zoning and building height allowance of 15m to 20m will provide for a good mixture of designs and end occupants.
Earthworks have already commenced on a large-scale residential development close to the Silverstone site. This project is being undertaken by WFH Properties Ltd which undertook much of the residential development surrounding Botany Downs.
Also featured in Bayleys' Total Property portfolio are two separate pieces of land off East Coast Rd in Silverdale. The largest of these, encompassing 17.5ha, is next to popular Snow Planet, Auckland Luge and Action Go Karts complexes while a smaller 7.6ha block of land is located further up East Coast Rd close to Silverdale township.
"The larger property has superb exposure to the State Highway 1," says Stuart Bode who is selling the property with Grant Dickson, also of Bayleys Auckland Central, and Damian Stephen of Bayleys North Shore.
The trio are also marketing a substantial stretch of land running adjacent to the motorway and Bode says resource consent has been lodged for the development of a 20,000sq m recreation building on this site.
The smaller property next to Kings Garden Centre is currently leased short-term as a golf driving range and is producing estimated annual rental income of around $300,000.
Bode says structure plan uses in this location include recreation and entertainment activities, with surrounding land in the early stages of being developed for urban purposes.
Expressions of interest are being sought in the two blocks of land, which are being marketed on behalf of a private investor, closing June 27.
Bode says interest is being sought from purchasers, joint venture partners as well as possible tenants for a design-build project.
