Top sites on way into town

Blocks of strategically located business land that front Ormiston Rd, the gateway road to the planned Flat Bush Town Centre in Manukau City, are up for sale.

They comprise two sites totalling 1.17ha on Ormiston Rd which is the main arterial road into Flat Bush and the East Tamaki Valley; and another 1.5ha site on Progressive Way, a cul de sac one block back from Ormiston Rd.

The blocks are for sale by deadline private treaty, closing 4pm Tuesday, March 30, through Bayleys Manukau's Marty Roestenburg and Dave Stanley.

Roestenburg says their sale offers an opportunity for businesses to stake their claim to a high-profile pivotal position approximately 500m from the distinctively designed Ormiston Bridge, marking the main entrance to the proposed Flat Bush Town Centre. It is envisaged that by 2020 the new "suburb" will have a population of 40,000, similar to that of Nelson.

Roestenburg says the sites for sale will also appeal to developers, with an opportunity to adjust boundaries to create smaller lots, as well as cashed-up investors looking for land banking opportunities in high-growth areas.

"Most of this type of land is controlled by bigger companies like Goodman, which is progressively developing sites at Highbrook, but for tenants only."

The smaller sites at 34 and 38 Ormiston Rd, located to the front of Farmers' Distribution Centre, are being offered as two separate lots of 5890sq m each. Roestenburg says one site would accommodate a warehouse office complex of approximately 2500sq m to 3000sq m, but if they are bought together a building of 5000sq m to 6000sq m would be possible. Even larger buildings could be constructed on the Progressive Way site.

The sites have a Business 5 zoning which permits a wide range of medium-intensity activities, including light to medium industrial, offices, cafes, restaurants and takeaway premises, smaller retail outlets, car parking, educational facilities, equipment hire premises, motor vehicle sales, service stations, travellers' accommodation, care centres and entertainment facilities.

Dave Stanley, Bayleys Manukau's sales manager, says the small amount of Business 5 land that is available in East Tamaki has an asking price in excess of $350 per square metre.

"While the recession reduced the pressure on land supply, leading to a correction in values, indications are that land prices in sought-after areas like East Tamaki bottomed towards the middle of last year.

"We are expecting a gradual pick-up in values as the economy improves and demand for new premises returns. There is still only a limited supply of well-located industrially zoned development land of any significant size available in Manukau City and this will once again put pressure on prices as the recovery gathers momentum."

The Manukau City Council's 2009 survey of industrial land shows that the city has 2047ha of land zoned for industrial development but only 386ha or 18 per cent remains vacant and a large proportion of this is not available for purchase. The Ormiston Rd area is expected to grow in conjunction with Flat Bush, which will be progressively developed over the next 10 years.

It will be New Zealand's largest and most comprehensively planned new town on a site of 1700ha and incorporating the 200ha Barry Curtis Park. Work is already well advanced on the building of a new school for the area with more to follow.

Stanley says with limited commercial development planned for Flat Bush Town Centre, the council is keen for Ormiston Rd to be developed to accommodate "spill over" businesses that will service the requirements of Flat Bush residents and provide employment opportunities for them.

There is already considerable impetus developing with Lion Breweries' new $250 million brewery on Ormiston Rd nearing completion. Ormiston Hospital, a $30 million private hospital and medical complex near the bridge, was opened recently. Ormiston Rd is already a main four-lane thoroughfare and is likely to carry steadily increasing volumes of traffic as East Tamaki Valley continues to develop.

Roestenburg says a previous owner wanting to see good-quality developments in the area registered covenants on the titles which, while not overly restrictive, will ensure buildings are of a similar standard to the nearby Farmers' head office and distribution centre.

The vendor is prepared to consider a delayed settlement to fit in with the buyer's circumstances as well as providing finance to an approved purchaser.