Large land holding with redevelopment potential
A large-scale landholding anchored by a government tenant offers buyers of all kinds the opportunity to secure a property that provides a steady rental stream and long-term redevelopment potential.
7 Alfriston Road, Manurewa includes a two-storey office building and a 152 square metre dwelling that sits on an 8213sqm freehold site. The property is zoned Residential – Terrace Housing and Apartment Buildings Zone under the Auckland Unitary Plan.
The purpose of the zone is to make efficient use of land and infrastructure, increase the capacity of housing and ensure that residents have convenient access to services, employment, education facilities, retail and entertainment opportunities, public open spaces, and public transport. This will promote walkable neighbourhoods and increase the vitality of centres.
Government agency Oranga Tamariki occupies the 2161sqm office building on a lease that runs until May 2026 with two further rights of renewal for three years each leading to a final expiry of April 2032.
Monte Cecelia Housing Trust is the tenant at the existing dwelling and their lease runs until December of this year with two further rights of renewal for two years each creating a final expiry of December 2028.
The total annual rental income from the property is $272,000 plus GST and operating expenses.
Located approximately 26km south of Auckland CBD and just 9km from Auckland Airport, Manurewa offers easy access to major arterial roads, including State Highway 1 and State Highway 20, and benefits from the convenience of the Waterview Tunnel.
Colliers Directors David Burley and Matthew Barnes are marketing the property for sale via deadline private treaty closing at 4pm on Wednesday 27 March, unless sold prior.
Nestled in South Auckland, Manurewa has developed rapidly during the past few years and is well served by key amenities located near the subject property, including a train station, supermarkets, and gyms.
Boasting a population of 110,900 people last year according to Infometrics, this figure is forecast to increase to 127,600 by 2048, reflecting the area’s continuous growth and appeal.
Burley, Auckland Director of Investment Sales at Colliers, says there is considerable long-term upside associated with this property. “There is a strong tenant covenant through the existing tenancies, anchored by a government operator, which provides strong holding income,” Burley says.
“The substantial landholding means a major development could be constructed at the site and given the time left to run on the existing tenancies, the new owner can strategically plan their future moves without time pressures.
“With its prime location, diverse population, and robust infrastructure, Manurewa offers an ideal setting for a major development to thrive in Auckland’s dynamic landscape.”
Barnes, Director of Investment Sales at Colliers, says the growth of Manurewa’s population has also been supported by important infrastructure improvements.
“Accessibility to major transport routes makes Manurewa a highly accessible suburb and Auckland Council’s Manurewa Takanini Papakura Integrated Area Plan underlines the importance of Manurewa as an important location as the gateway to South Auckland,” Barnes says.
“The 30-year strategic plan from the council has a focus on transport, stormwater, water quality improvements, and community projects, which will all also be further enhanced by greater housing supply over the coming decades.
“The new owner will be able to enjoy a steady rental stream before undertaking a development project that will enhance the housing offering in Manurewa as this suburb continues to grow and benefit from council investment.”