Blue area indicates Villa Maria land Goodman is buying at Māngere. Photo / supplied
Listed industrial giant Goodman Property Trust is planning a development of around $500 million on what is now the Villa Maria Estate vineyard in Māngere.
John Dakin, Goodman chief executive of the business with $4.3b in assets, said that business intended to create a high-quality long-term business park on what is now vineyards where concerts and events are held.
"Hopefully we can do something that would make Sir George, the community, us and our customers proud and that we've done the right thing," Dakin said referring to Villa Maria's Sir George Fistonich.
Goodman is paying $75m for the site which has caused some surprise, thought to be low, as well as disappointment at the loss of the concert venue.
Goodman has also just added $500m on to its portfolio value.
Dakin said industrial property demand "is the same in every country in the world. It's a structural shift with all the e-commerce. The demand is very high. The investment demand has never been higher. People are seeing warehousing or industrial as a bit more like infrastructure, particularly with events like Covid. It's such a critical part of the supply chain. It's not a discretionary asset class like retail.
"There's been a lifestyle change. People want more convenience, they want them delivered to their house."
Goodman has not got as far as naming its planned business park.
"We have to go through a master-planning process which will involve consulting with iwi, council and other stakeholders. We have not settled and the date is the end of October/start of November.
"The demand for well-located industrial sites is so strong all around the world. But the opportunity with this particular piece of land is the chance to create a new generation of estate. People ask if it will be like Highbrook, but from a sustainability point of view, it can be a completely new standard in how it integrates with the landscape.
"We would want to achieve carbon neutrality. Because of the location, it would be well integrated with the surrounding landscape. We clearly want to have a close partnership and consultant with iwi. It's pretty close to Ihumātao. We've already met with a couple of groups. We're in the very early stages, it's only just gone unconditional.
"We plan to spend the next year to 18 months working with all those parties and create something pretty special and reflective of that environment."
Asked if it would be around $500m, Dakin said it would be "of that order".
The process started this time last year when Colliers brought the land to the market and
"it's taken us this long to conclude a transaction".
Collier's industrial national director Greg Goldfinch brokered the deal.
Asked about removing grapevines and building on vineyard land, Dakin said: "It will be an important consideration in the master planning - what's been its history. So are iwi too. We want to include all those pieces of the puzzle."
The land was already zoned light industrial, meaning it was perfect for Goodman's plans to build thousands of square metres of warehousing and logistical buildings.
"Acquiring land is difficult and very competitive but we just want to take our time because it means a lot to a lot of people," Dakin said.
Multi-level buildings were not planned "but [if] we're still working our way in eight to 10 years, that might be a possibility. We're taking three to four years before we start building."
Planning would take one to two years, then civil works would need to take place which would be another year. Discussions with iwi would need to take place before full planning took place.
"The whole area around the airport has an interesting history with a number of different iwi having an interest in that area. We've been in touch with the ones we're aware of.
"We just want to make sure we're listening to the parties who have an interest and work in a constructive way. We're in the very early stages of working through that."
Highbrook is larger at 150ha including parklands.
Goodman is not buying the winery or other buildings: "Those buildings have been purchased by Indevin who bought the whole Villa operational business."
Asked about the horseshoe-shaped site and not buying winery buildings, he said nothing could be done about that: "You've just got to be clever about how you integrate those buildings into the development. They're beautiful buildings in a nice setting and it's a big advantage being in the middle of the development."
Surprise has been expressed about the sale price of the land and disappointment at its loss as a concert venue.
Goodman will shortly settle the $75m purchase of the 34ha site in the deal excluding vineyard buildings.
That will see vineyards established by Fistonich removed and the end of events and concerts there.
Paddy Callesen, head of industrial sales and leasing for Savills, said there was discussion about FFWL receivers Calibre Partners accepting Goodman's offer.
"The market suggested it could have been worth more than what it has sold for but none of us knows all the circumstances. The receivers might have gone for a clean offer rather than a conditional offer," Callesen said of the land between Montgomerie Rd and Ōruarangi Rd.
One valuation expert said the $75m equated to around $214/sq m when land in that area could go for $1000/sq m "and I'd have snapped my arm off to buy it for twice that because even then, it would have been cheap".
Other would-be buyers are thought to have needed Overseas Investment Office clearance and were also specialists in planning and developing large South Auckland warehousing estates.
Receiver Neale Jackson did not respond to an inquiry about the price.
Nick Hill, chief executive of Tāmaki Makaurau economic and cultural agency Auckland Unlimited, said today the estate was a much-loved destination for many locals and visitors and he expressed sadness at its loss.
"With wonderful park-like surrounds and being so close to the airport, it's a world-class visitor experience created by Sir George Fistonich and his team," Hill said.
"Over the years it has hosted local and international artists for the annual summer Vine Days series, corporate and private functions, trade delegations and many visits by the public. Any changes that could impact this would be a real loss to Auckland," Hill said.
Fistonich has launched legal proceedings over the sale of iconic winery Villa Maria, alleging receivers appointed to the business unduly shut him out of the process.
Fistonich's company that owned the winery business, FFWL, was put in receivership in May by ANZ Bank and Rabobank. Calibre has listed creditors being owed $211m in that first report but puts no valuation yet on assets.
Fistonich said "selling Villa Maria was never part of my plan. Even though I remained the shareholder, I have not been involved in the running or decision-making processes at Villa Maria for the past two years.
"The Australian-controlled Goodman has got a great deal and I do not begrudge them that. What I am disappointed about is the potential loss to Auckland of a well-used and loved central venue that not only produces award-winning wines but has supported concerts, weddings, conferences visited by royalty and prime ministers.
"Should the land become an industrial park then all these activities will inevitably be lost and Auckland will be the poorer, losing a key world-class drawcard for locals and tourists," Fistonich said.
The co-op has posted a $14.3 million net loss after tax for the year ended June 2024.