Super city site for sale
Offshore investors targeted for top spot, writes Colin Taylor
prominent Auckland CBD site, formerly occupied by a service station on Fanshawe St, opposite Victoria Park, is on the market.
“This sale represents an outstanding development opportunity at the heart of Auckland’s waterfront area,” says Peter Herdson, national director of capital markets for Colliers International.
Herdson and colleague John Green, are marketing the 3879sq m site at 155- 167 Fanshawe St, in the Wynyard Quarter, for sale by deadline private treaty with offers closing on October 12, unless the property is sold earlier by negotiation.
“This unencumbered freehold site is one of the best property offerings currently available nationwide,” Herdson says. “It’s a prime landholding opportunity and we are targeting offshore investors.
“It is strategically located in Auck- land’s vibrant and fast- expanding Wynyard Quarter, which incorporates some of the best mixed- use waterfront land of any major city in New Zealand.”
Green says the site is within a close walking distance to North Wharf, Viaduct Harbour, Westhaven, Victoria Park, neighbourhood restaurants, bars, cafes and the Auckland CBD.
“It has excellent access to all the motorway systems via Fanshawe St, Union St and Hobson St and is well served by public transport with buses regularly travelling in both directions along Fanshawe St. The Britomart railway station and ferry terminal are also close at hand,” Green says.
“It’s in a high- profile position with an extensive frontage to Fanshawe St, one of Auckland’s busiest arterial roads.”
Herdson says the site comes with vacant possession. A nominal shortterm holding income on a monthly roll- over basis from a retail outlet and car wash keeps it flexible for future development.
“Its location in Wynyard Quarter with big corporates like ASB Bank, Fonterra and Datacom is indicative of its promised potential. Goodman has just announced Auckland Transport has signed up to a nine- year lease of the VXV20 building — opposite Fonterra on the corner of Fanshawe and Halsey Streets — which will be extensively refurbishment after Vodafone vacates next year.”
The Wynyard Quarter i s to the west of the Auckland CBD and i s undergoing a significant transforma- tion from an industrial hub to a high quality Mixed Use area featuring restaurants and cafes. Renovation of several other major corporate office buildings is also under way.
Herdson notes the Beijing- based property developer, Fu Wah International Group, has commenced building on the old Team New Zealand site for the Park Hyatt, a new seven- level, 195 room, five- star luxury hotel to be completed in 2018.
Green says the Fanshawe St site sale comes at an opportune time. “Auckland Council is supporting redevelopment of the area with targeted public investment in infrastruc- ture and catalyst projects that will complement the commercial developments on the waterfront.
“The proposed development of the Wynyard Quarter Central Precinct i s a key initiative of Panuku Auckland which i s revitalising the city’s waterfront. Precinct Properties and Willis Bond & Co have partnered with Panuku to deliver commercial office space focused around innovation and residential living for mixed- use apartments and townhouses,” Green says.
“This project will attract investors, businesses and residents and showcase Auckland as a smart, globally relevant city.” Wynyard Central will feature new recreational spaces and activities like green pocket parks, a network of pedestrian friendly laneways and the newly built Linear Park on Daldy St.
“This Fanshawe St site spans office, retail and residential projects as it’s zoned City Centre — Wynyard Sub- Precinct A under the Auckland Unitary Plan. This zoning is at the top of the city centre’s hierarchy and will play a pivotal role in Auckland’s present and future success.
“The zone seeks to ensure the city is an international centre for business and learning, innovation, entertainment, culture and urban living,” Green says. The zone forms part of Sub- Precinct A ( southern) bounded by Fanshawe St, Westhaven Drive, Gaunt St and Halsey St, a total land area of 3.6ha in three blocks.
Herdson says Auckland is experiencing unprecedented growth and demand for office space.
“The additional space created is predominantly speculatively led and is filling up fast. More than 60 per cent of the 200 companies in New Zealand operate within Auckland which puts the situation in context.”
Green says the retail market is experiencing significant growth with only a 2.4 per cent vacancy rate in Auckland — the lowest since 2007. “Retail is also benefiting from record high immigration, strong labour
John Green
conditions and a rising housing market in a low interest rate environment..
“The level of demand for retail space in Auckland CBD, the suburbs and shopping centres symbolises a healthy retail market.
“Our residential market is also experiencing the highest demand since 2007 with Auckland’s apartments benefiting from a major, but classic, demand- exceeding- supply scenario. We are seeing a structural problem of population increasing at a faster rate than dwelling supply can enter the market.
“New Zealand’s 50- year low interest rates and the lower apartment purchase prices relative to residential houses add fuel to the fire. As a result, apartment values are likely to keep appreciating despite central government and Reserve Bank controls cramping capital value growth.”
Herdson says New Zealand is ripe for investment, with positive migration and demographic profiles, supportive investment environment for foreign and local ownership, good debt- to- yield spread, a stable political regulatory environment and a benign tax structure with no capital gains tax and stamp or conveyance duty.
“The combined factors affecting these sectors are seldom presented to the market and all contribute to the strategic investment significance of this Fanshawe St site,” Herdson says.