Farm beside Hamilton Airport
Auckland- based Titanium Park Development is selling highly strategic dairy farmland uckland- based Titanium Park Development Ltd i s selling a strategicallylocated dairy farm adjacent to Hamilton Airport.
The 98.4ha property at Ohaupo just south of Hamilton consists of 58.4ha of rural- zoned land with an additional 40ha zoned airport business but now used for dairy farming.
The Narrows Rd land and farm are being marketed by Bayleys Hamilton, through a tender process closing on November 10.
The airport business- zoned 40ha portion is highlighted in Waipa District Council’s regional growth management plan, identifying the site as the Northern Precinct and future potential expansion area of Titanium Park which adjoins Hamilton Airport.
Titanium Park is a 75ha industrial and commercial business park surrounding the aeronautical infrastructure and has been managed by McConnell Property Ltd, former development manager of Auckland’s Highbrook Business Park.
McConnell Property general manager Nigel Richards says the farm was acquired as a strategic move.
“This recognised a value- add opportunity around its re- zoning, connection to the Park and broader regional infrastructure,” says Richards.
“We have worked closely with private and public stakeholders over recent years to obtain the 40ha industrial zoning and leverage the property’s position in a new transportation network,” he says.
Permitted activities under Waipa District Council’s airport business zoning for land around Hamilton airport are business operations, including: commercial and industrial premises, transport and freight depots. Activities allowed include vehicle rental and valet services, vehicle parking and storage, helicopter pads, utility services and structures, the storage and sale of aviation fuel, service stations and commercial garages, cafes/ restaurants/ takeaway outlets and licensed premises, and accommodation.
Bayleys Hamilton salesperson Stuart Gudsell says investment and development opportunities for the property are definitely long- term.
“As existing land and buildings within Titanium Park are sold down or leased, the availability of tenancy options will shrink.
“Over time, and as Hamilton Airport traffic and support activities continue to grow, new commercial and industrial space will be required,” Gudsell says.
“As most of the land adjacent to this part of the airport i s undeveloped, and in this case used as a working farm, there is an opportunity to implement the principles of good urban design in any future development. In the interim, holding income can be sustained by the present dairying operations, which could continue to include an additional 60ha of land adjoining the property and currently being leased from the airport.”
Gudsell says the New Zealand Transport Agency i s aware of the property’s strategic location, and last year bought about 4.264ha of land for the $ 100m- plus Southern Links arterial expressway project.
“This has created a somewhat exciting aspect to the offering.
“Southern Links is a key regional transport link that will connect State Highway 3 with Hamilton City and the Waikato Expressway — all of this occurring effectively at the front door of the farm.
“Combine this with the immediate proximity of the airport and freehold tenure of the property and you have a truly unique offering in terms of its commercial development potential,” Gudsell says. Over the past four years, the farm has run a herd of about 500 cows — producing an average of 182,075 kg of milk solids each season.
He says the property was designed to run up to 600 cows in a 50- bale rotary dairy shed. In its current format, the farm grazed 475 cows and leased a further 60 hectares from Hamilton Airport for grazing.
The farm has a three- bedroom homestead with swimming pool and tennis court, and a three- bedroom worker’s residence. Infrastructure on the property include an implement shed, workshop/ storage shed, six- bay calf shed, two- bay barn, consented water bore, and effluent pond.
The property has a Waipa District Council rating valuation of $ 5.35 million — calculating the block on its current 102.7 ha.
Gudsell says the valuation will most likely change when the next rating calculation i sa made on a landholding of 98.43ha. More than 20 properties sold at Colliers International Auction Room events during October.
Sixteen of those properties were sold at auction in Auckland and a further seven were sold by Colliers’ franchises including Christchurch, Hawke’s Bay and Hamilton.
In the Auckland auctions, a combination of quality tenanted retail units plus seven commercial office and warehouse investment properties contributed to the very strong clearance rate that generated more than $ 36 million in sales.
The average yield generated in Auckland was 5.4 per cent.
The list of auctions was anchored by six retail properties along Lincoln Road Henderson, Auckland.
The modern units with established tenants fetched between $ 796,000 and $ 3,500,000 for a total of $ 11,416,000 — achieving yields between 4.9 per cent and 5.3 per cent.
Five of the auctioned retail units — located in a complex at 297- 307 Lincoln Road — included a childcare centre, Texas Chicken, Mexicali Fresh, Flame Pizza and Mark Anthony Hair Design.
Shoneet Chand, who sold the units with colleagues Peter Kermode and Craig Smith, says the strong tenant covenants made these deals extremely desirable.
“More than one hundred bids were received on some individual auctions in what was an extremely active auction room.
“The appealing tenancies were complemented by their prime location and detailed design of the overall development making for a secure, strong long- term asset.”
The largest auction sale in Auckland during October was $ 4,500,000 paid for a 305 sqm retail property with three tenancies on a freehold 1,358 sqm site at 423- 427 Beach Rd, Mairangi Bay. It was sold by Colliers International brokers Tony Allsop, Euan Stratton, Jimmy O’Brien and Gareth Fraser.
“This was a great opportunity to secure a very desirable piece of the Mairangi Bay Village with a holding income of $ 48,187 per annum plus GST and plenty of future development potential for both retail and residential purposes — a rarity to come by within such a popular North Shore seaside community,” says Allsop.
Colliers International’s auctioneer, John Bowring, said the results prove that with the market as hot as it is, auctions really are the best option for most vendors.
“The strategy with the majority of our auction listings is to market the property to as wide a group of buyers as possible and then use the most effective media channels to produce a very diverse group at auction on the day.
“I think the only way to generate the prices that are being achieved is by getting a large number of unconditional buyers in the same room at the same time.
“It really i s the best method to value properties in this sort of market.”