Two Waikato sites ideal for developments
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 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 are 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 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,” he says.
A second block also going to auction at noon on March 7 through Bayleys Hamilton is an industrialzoned Te Rapa landholding.
Salespeople Rebecca Bruce and Jordan Metcalfe say the 3590sq m property at 23 Bristol Place is being sold as vacant, with all the existing tenants moving out.
It consists of an under-utilised 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 adhoc 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.
“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 on to Bristol Place, combined with the size of land available
— would lend itself to multiple terraced industrial warehousing, manufacturing, or engineering entitytenanted 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.
“Hamilton Council’s industrial zoning for the land allows for premises with mezzanine-level offices to be built, which would maximise the amount of ground floor space on offer.”