Hamilton site that's far from boring

Brown Bros (NZ) moved to the Waikato in the 50s, after working the South Island. Photo / Supplied

Internationally known family-owned drilling company Brown Bros (NZ) is selling the Hamilton site its business has operated from since 1954.

It is the first time the 10,976sq m site at 355-359 Te Rapa Rd has come on to the market after it was converted by Nathanael Brown from bare land to the base for the drilling company's operations.

Brown Bros (NZ) began during the South Island gold boom of the 1930s when Nathanael Brown drilled for gold on the West Coast, operating up to four drilling rigs that were locally manufactured.

Following the end of the boom, Brown relocated to the Waikato region and established a business drilling water bores for the burgeoning dairy farming industry.

The family company is now owned and operated by Nathanael's grandson Graeme Brown and it is known throughout New Zealand and overseas for its design skills, technical competence and ability to complete demanding projects. Much of Brown Bros (NZ) work is undertaken for municipal and commercial water supply and exploration markets, as well as the mining and quarrying industries.

CB Richard Ellis Hamilton is marketing the property for sale by auction on Wednesday, June 23 and director Karl van Gisbergen says there has been a lot of interest in the strategic land holding bounded by Te Rapa racecourse and close to the city's CBD.

"It has been some time since a landholding of this size on Te Rapa Rd and this close to the city for sale.

"Vacant land for sale along the straight is hard to find at the best of times as it is Hamilton's premier industrial and commercial area and highly sought after."

Van Gisbergen, who is selling the site with colleague Russell Smith, says Brown Bros (NZ) has decided it is time to move on.

"When the company started business in the Waikato, Te Rapa Rd was a gravel road and there were no other firms in the vicinity. In the intervening years land prices have jumped and the drilling company doesn't need the exposure to the high volumes of passing traffic other businesses require. The company can operate elsewhere in quieter surroundings."

Smith says there are two sheds and an office building on the property covering only 4 per cent of the site. "The family has mainly used the property for storing well drilling rigs, diesel tanks and other equipment related to the business.

"The buildings erected in the mid-1950s have little to no value, so basically we are selling the land, which is in two titles."

Under the Hamilton City Council's District Plan the property is zoned Industrial.

Van Gisbergen says the area surrounding the property contains a mixture of businesses including car yards, importers, manufacturers, bulk retailers and service industries.

He says the High Court's recent quashing of the council's Variation 21 to the District Scheme makes this site more attractive for developers and investors.

Variation 21 would have imposed greater restrictions on retail and office development outside Hamilton's CBD.

Retail development would have been restricted to 150sq m and new offices to 250sq m to preserve the CBD as the principal commercial and retail hub of the city.

Tainui challenged Variation 21 in the High Court on the grounds it had not been consulted as tangata whenua before the variation was publicly notified.

The court agreed the council had breached its obligations and declared the proposed variation unlawful, invalid and of no effect and directed the council to consult with Tainui before any proposed further variation is approved and publicly notified.

Hamilton lawyers say the council has to now consider resource consents under the existing zoning rules, which aren't so restrictive on the size of commercial and retail developments, until the council appeals the court's ruling or further pursues Variation 21.

Van Gisbergen says whatever happens there is a period of opportunity to apply for resource consent for a substantial commercial or retail development. He says a mixture of office and retail businesses are nearby neighbours and include Aber Gas, Fairview Motors, SVS Veterinary Supplies, Rollo's Marine, Bunnings Warehouse and DEC International.

"Every day more than 30,000 vehicles pass the site and the property's location, size and building coverage would suit a developer or owner-occupier keen on large format retail operation, a vehicle franchise yard, possible subdivision or a substantial building close to the city.

Van Gisbergen says the site is in a premier location for any business that wants to be close to the inner city.