This view encompasses the elevated 12.8ha block at 7 Colin Drive overlooking Paeroa. Photo / Supplied
This view encompasses the elevated 12.8ha block at 7 Colin Drive overlooking Paeroa. Photo / Supplied
Two Waikato land blocks, in Paeroa and Te Rapa and both ideal for new developments, are featured for sale in Bayley's latest Total Property portfolio publication and will go to auction on the same day.
The first site of about 12.8ha overlooks Paeroa and has been subdivided off a 302ha dry stock farm that remains in primary production as a grazing block.
"Consents have been granted to subdivide the 12.8ha block into low density residential sections enabling it to become an upmarket boutique housing subdivision," says Josh Smith of Bayleys Hamilton, who is marketing 7 Colin Drive for sale by auction at 12-noon on Thursday March 7.
"The Hauraki Council has identified a demand for low density residential living on smaller blocks to serve the needs of people wishing to live in a semi-rural setting, while having minimal involvement in farming activities." Smith says.
"Being just on the outskirts of Paeroa, the Colin Drive site can provide a rural outlook, while still being close to social and recreational amenities.
"This property borders one of the more sought-after parts of town, with views out over greater Paeroa and the Hauraki Plains on the horizon."
Smith says the greater block, and the residential subdivision portion, are adjacent to the former Paeroa racecourse, which sold into private ownership several years ago.
Since then, Paeroa racecourse has been subdivided into 600 smaller residential sections with 90 per cent of the first redevelopment stage sold to future residents.
The site for sale at 23 Bristol Place, Te Rapa, is indicated by a red border. Photo / Supplied
"The sell-down of the nearby Paeroa racecourse sections has already demonstrated the demand for new properties at Paeroa," he says.
"However, the Colin Drive block offers a completely different opportunity with elevated sections that will, on final subdivision, be considerably larger sizes than those on the plains."
Smith says that, in order to protect what is envisaged as "an exclusive and high-end subdivision," a future developer could implement covenanted building plans on the eventual sections.
"Covenants would ensure that the quality of building undertaken would be of a like-for-like equivalent to neighbouring properties, thereby protecting land and home values.
"Home owners in the upper-price bracket are prepared to pay a premium for such neighbourhoods in Paeroa," Smith says.
The second block that will also go to auction at 12-noon on March 7 through Bayleys Hamilton is a 3590sq m Industrial-zoned landholding in Te Rapa.
Sales persons Rebecca Bruce and Jordan Metcalfe say the 23 Bristol Place property is being sold as vacant with all the existing tenants moving out before a settlement date.
The property consists of an underutilised block of land housing several dilapidated storage structures and makeshift Portacom' offices around a heavy-duty storage yard.
Surrounded by factories, light manufacturing, engineering plants and warehousing properties, the site's 'charitable owner' has allowed various light industrial tenants to store materials and multiple work vehicles around the property at 'mates rates' – paying ad-hoc 'peppercorn' rentals.
"No formal leases are in place for any of the group occupying space on the property," Bruce says.
"The obvious potential for this property is to remove the low-value structures from the site, which wouldn't take much effort, and construct a new building or buildings from scratch," she says. "In essence, a purchaser would be buying the flat land for its future potential."
Hamilton City Council's rating valuation of the property mirrors Bruce's estimate of the various offices and garage storage units on-site to have a combined value of $10,000.
She says the property's T-shaped configuration - with a substantial access frontage onto Bristol Place, combined with the size of land available - would lend itself to multiple terraced industrial warehousing, manufacturing, or engineering entity-tenanted units with floorplates of 100sq m to 200sq m.
"Subject to consents, prospective buyers who have already viewed the site say a terraced tilt-slab styled block of units could be constructed at the rear; with further units added along the front portion adjacent to the driveway," Bruce says.
"Intensification along these lines would deliver a far more efficient use of the land and would go some way meeting strong market demand for small industrial premises in Te Rapa.
"Hamilton Council's industrial zoning for the Bristol Place land allows for premises with mezzanine-level offices to be built – which would maximise the amount of ground floor space on offer."
