Prime spot in first stage of South Auckland development
Property is situated on what will be one of the busiest roads in planned business park
The largest and last available lot in the first development stage of the Drury South Crossing business park in South Auckland is up for sale, offering owner-occupiers, add-value investors, or developers the opportunity to secure a prime spot in the 361ha mixed-use precinct.
The 3.439ha site is in a corner positon with about 190m of frontage to Maketu Rd, one of the main roads in the $800m Stevensons Group project. Maketu Rd will connect with a recently completed interchange with State Highway 1.
“Offering exceptional exposure to what will be one of the busiest roads in the business park, this site is the jewel in the crown in Block One of the project and will be one of the best sites available in the whole development,” says Scott Campbell, national director industrial for Bayleys Real Estate, which is marketing the site
“Maketu Rd will separate a large industrial precinct from a commercial precinct whose proposed central hub is directly opposite the land we have for sale.”
Campbell says the site’s Light Industry zoning allows for many industrial activities as of right, including light manufacturing and production, storage, logistics, transport and distribution activities.
“In particular, it could suit a company looking for a high-profile branding opportunity, which could incorporate its head office or a large showroom to showcase its products or services.
“However, given the location on a corner position at the beginning of the industrial area and directly opposite the commercial hub, purchasers may wish to investigate the potential for better use of the site, subject to council approval. For example, a new owner could potentially apply for resource consent for use such as a large trades-related bulk retail complex.”
Campbell is marketing the site with Bayleys Auckland colleagues Ben Bayley, James Hill and Sunil Bhana, with expressions of interest being sought closing October 24, unless sold earlier.
Drury South Crossing is east of the southern motorway (SH1), between the Drury and Ramarama interchanges. The Drury quarry, at the base of the Hunua foothills, forms the eastern edge of the site and is being incorporated into the precinct.
Stevensons sold this and other quarries it owned to Fulton Hogan Ltd to concentrate on the Drury South Crossing project.
A massive earthworks and civil engineering programme is now well underway. This will provide the necessary infrastructure for industrial, commercial and residential buildings, which are expected to start to take shape from early 2021.
Drury South Crossing chief executive Stephen Hughes says about five million cubic metres of soil will shifted. The earthworks will also include the laying of 11.5km of water pipes, 5.7km of waste water pipes and 8km of stormwater drainage.
He says there has been strong demand for sites. Ten lots in Block 1 and a further nine lots in neighbouring Block 2 have either sold unconditionally or are under conditional contract.
Land titles for these sites, which range from 7000sq m to close to 2ha, are expected to be available from late next year, with construction of buildings likely to follow shortly thereafter.
Sales to date have been to a mixture of local and national owneroccupiers, investors and developers for industrial warehousing, light engineering and/or yard use.
Most sales so far have been to owner-occupiers, which Campbell says is not surprising given the acute shortage of and high cost of industrial-zoned land available to buy in other parts of Auckland, particularly sites for big warehouses.
“In recent years, most industrialzoned land which can be built on in Auckland has been in the hands of longstanding corporate landlords, who build for tenants and are longterm holders of the finished product,” Campbell said.
“Drury South Crossing is one of the only opportunities for large-scale owner occupiers — or developers — to secure land at competitive rates. Owner-occupier demand has been a key driver of the commercial and industrial property market for some time on the back of low interest rates.
“Businesses are making the most of attractive borrowing costs to move into the property market. Buying land means they can also build exactly what they require, rather than often having to compromise if they acquire an existing vacant building.
“The larger sites at Drury South Crossing also provide flexibility for expansion at a later stage, which means companies can future-proof their position within Auckland’s next major business hub in an area which will undergo enormous growth over the next 10 to 20 years.”
Bayley says another big attraction for businesses is Drury South Crossing’s position alongside SH1 on the “Golden Triangle” — the key markets of Auckland, Hamilton, and Tauranga.
“It’s the perfect staging point for accessing close to 60 per cent of the North Island’s population generating about 52 per cent of the country’s GDP.”
Bayley says Drury is set to benefit from $2 billion of infrastructure investment over the next 10 years, with planning at various stages for town centres, retail and community facilities, a school, a railway station and a hotel.
Hughes says Drury South Crossing, as well as providing industrial, commercial and residential property, will incorporate about 90ha of open spaces, including recreation areas, walking and cycling tracks.
The Hingaia and Maketu streams, which will meander through the public spaces, will be enhanced. “These waterways are being remediated, and there will be extensive native planting undertaken,” said Hughes.
“This will become a feature of the overall development, and a new wetland area for stormwater management will treat and improve water quality entering the Hingaia stream.”
Stevensons has sold 45ha of land between the commercial precinct and the motorway to Classic Developments, which will manage the development of up to 800 houses with over 70 per cent of them to be priced below $800,000.
Hughes says Stevensons and Auckland Council have worked together to ensure there is sufficient housing within and around Drury South Crossing to provide homes for an estimated 5000 workers who will be employed there. A large proportion are expected to live in the surrounding area.
Three new housing estates adjoin the business park and Auckland Council structure plans for Drury, Pukekohe and Paerata could see more than 23,000 new houses built in these areas over the next 15 years.
“It could suit a company looking for a high-profile branding opportunity, with head office and showroom.”