World-class beachside landholding could further redefine Takapuna
Billed as a once-in-a-lifetime opportunity, an almost 1ha landholding fronting Takapuna Beach on Auckland’s North Shore with potential for trailblazing redevelopment to optimise the town centre’s connection with the foreshore is now for sale.
The freehold 9,482sqm site over eight contiguous titles at 53-77 Hurstmere Road and 14 The Strand, Takapuna has Business – Metropolitan Centre zoning which allows for broad and intensified residential and commercial development.
The precinct, which currently supports multiple commercial assets, has the working title of Main Beach Takapuna, with the owner having had a long-term vison to privately fund mixed-use development across the site to better link it to the retail heart of Takapuna and the beach.
Ten years ago, the owner spearheaded the successful and cosmopolitan-style beachfront restaurant pavilion located to the front of the site, which is home to proven hospitality establishments Regatta, Franc’s and Tokyo Bay, with the development a successful move to help knit the precinct with Takapuna’s high street.
As is stands today, the total site comprises five commercial assets and generates substantial holding income of circa $3 million per annum, well supported by a diverse tenant mix, and with a weighted average lease expiry (WALE) of 2.44 years by income and 2.55 years by area.
Appreciating that the site has multiple layers of redevelopment yet to unfold given the potential that upzoning under the Auckland Unitary Plan allows, the owner has opted to sell the landholding believing there are others better equipped to deliver a project with the development scale the site deserves.
Within the designated Business – Metropolitan Centre Zone, the site has Takapuna 1 – Sub-Precinct ‘A’ overlay which provides a generous planning regime for a wide range of development options and includes frontage and building setbacks and through-site links via a pedestrian way.
Stuart Bode, John Bayley, and Ryan Johnson of Bayleys, in conjunction with the firm’s global real estate partner Knight Frank, have been appointed to market the portfolio.
With offshore capital circulating once again in the Asia-Pacific region, high-net-worth individuals, family offices and institutional investors scoping opportunities, and Auckland’s development cycle showing signs of rebooting, the landholding is for sale via an International Expressions of Interest campaign closing 2nd May, unless sold prior.
Bode said this is a genuinely rare opportunity to regenerate a significant site with 90 metres of frontage to central Takapuna Beach.
“In global terms, waterfront precincts have the capacity to fundamentally change the way the environment and the urban fabric work together.
“Main Beach Takapuna is world-class real estate and we’re expecting robust interest from off-shore given the Asia-Pacific region’s appeal for active global capital.
“In an Australasian context, this site is a pivotal redevelopment opportunity – try and find the equivalent landholding as one parcel in say Sydney or Brisbane and then assess the potential Takapuna offers astute buyers to create a new residential, commercial, retail, food and beverage precinct, that would revitalise the streetscape.
“This is an opportunity to create something outstanding for Takapuna’s beachfront and the broader neighbourhood that will set the suburb apart and further underscore the desirability and value of the area.”
In the last 10 years, Takapuna has seen more than $4 billion worth of commercial and residential investment volume and over 2,000 transactions, cementing its position as a well-established investment precinct, said Bode.
“Key players in the New Zealand market and globally significant developers including Robt. Jones Holdings, Precision Group, Cook Property, Zone Q and several other local and offshore high-net worth individuals already have confidence in this location.
“Takapuna is undergoing monumental change currently, with council entity Eke Panuku Development Auckland partnering with Willis Bond on the $400 million, 5,560sqm mixed-use and multi-stage development, Takapuna Central around Anzac Street.
“A development agreement between Eke Panuku and the Cedar Pacific-McConnell Property consortium will also see the development of a 350-apartment high-rise buildto-rent complex on a 2,875sqm site on Auburn Street, with this project currently awaiting resource consent.”
With Main Beach having unrivalled profile to Takapuna Beach and views across the Hauraki Gulf stretching out to Rangitoto Island, Bode said the dress-circle location ultimately deserves a regeneration plan that maximises the land footprint.
“The existing assets generate a resilient net passing income underpinned by many bigname occupiers like Fisher Funds, Regatta, Mecca Cosmetica, Seed Heritage and Wilson Parking, but the WALE provides purchasers adequate timing to undertake initial planning and consent processes coinciding with initial lease expiry profiles.
“Takapuna is a high-decile suburb with a loyal and growing resident population and is seen as a boutique retail and hospitality destination for Aucklanders and visitors.
“Residential property values in Takapuna surpass those of neighbouring areas, and it is the North Shore's premium commercial hub.
“Council has identified Takapuna as one of Auckland's key metropolitan centres and is committed to allowing high quality growth and development to improve the centre in the long term.”
Permitted activities within Main Beach’s designated zone include residential dwellings, integrated residential development, supported residential care, and visitor accommodation. It allows for broad commercial services, conference facilities, entertainment facilities, offices, retail, along with community, education and recreation facilities.