Unlocking land bank

A last opportunity to buy a large holding of freehold business land in Albany has arisen with the release of 7.5ha in the North Harbour industrial estate.

Eighteen lots zoned Business 9 and ranging from 2400sq m to 6000sq m have been put up for sale through John Algie, Darryl Devereux and Laurie Burt of Bayleys North Shore. Tenders close on September 28 and prospective purchasers can bid for the entire site or for individual lots.

According to a Bayleys Research survey earlier this year, there is only 65ha of vacant industrial land available for development on the North Shore. The average rate of absorption over the past four years equates to 17.5ha a year with 23ha soaked up last year alone for new construction. This suggests the remainder will go within four years.

Algie says the land block fronting the Albany Highway is being sold by a North Shore investment company that acquired it in the mid-1990s. It has land-banked the property since then and this is the first time it has been offered to the market.

The land has been subdivided, titles have been issued, internal roading is complete and all services are in place, meaning the sites are available to build on immediately, says Algie. The estate is serviced by two main culs-de-sac, Lovell Court and John Glen Ave which run off William Pickering Drive.

Algie says the lots are expected to generate tenders from owner-occupiers and developers, and by investors attracted by the continuing growth in land values, pushed up by an increasing scarcity of supply. Daryl Devereux says much of the remaining vacant land is part of the final Interplex business park in Albany and has already been purchased and land-banked by developers. The latest land sales in the Interplex park have realised $350sq m to $400sq m.

However, these sites have more restrictive covenants and less flexibility than the Albany Highway lots that are being tendered, says Devereux. Rising land values and higher construction costs means developers have sought a higher rental rate to make new projects viable. This has resulted in an increased construction of commercial and retail buildings which produce higher rentals than warehouses and industrial buildings.

Burt says the land being offered for sale is flat and benefits from its proximity to Massey University, Albany Village, and the new regional Albany Centre.

It will also be within 2km of the new link road between the Western and Northern Motorways.