Manukau site could suit hotel
Brokers say a large, high profile Manukau site offers substantial annual holding income while plans are hatched to unlock the property’s development potential.
The offering, featured in Bayleys’ latest Total Property portfolio, comprises 10,219sq m of underutilised land at 712-718 Great South Rd — close to Redoubt Rd and the motorway on-ramp.
The property is for sale by deadline private treaty, closing December 12, unless sold earlier, and is being marketed by Jamsheed Sidhwa and Dave Stanley, Bayleys South Auckland.
“This an exceptional trophy location which could host a range of developments to maximise its strategic location such as a new vehicle dealership, hotel and offices, or a combination of these,” says Sidhwa
“This part of Great South Rd and adjoining Redoubt Rd is one of the main entry and exit points to and from the Manukau CBD which accommodates a mix of large scale office and retail buildings including the giant Westfield Manukau mall which is opposite the property for sale,” says Stanley.
“It’s a very high exposure site with frontage to Great South Rd as well as massive profile to the motorway on ramp which loops around the property. It offers the opportunity for strong brand profile for occupants.”
Part of the site is currently occupied by two hospitality tenants: Bronco’s Steak House and the 1981 bar, restaurant and nightclub with leases running until August 2020 and May 2021 respectively.
Stanley says this offers a purchaser a significant initial cashflow of $356,000 while they investigate “the highest and best use” of the site.
The property is zoned Business — Mixed Use under the new Auckland Unitary Plan which Stanley says is a zone typically located around centres, such as Manukau’s Metropolitan Centre, and allows for intensive commercial and/or residential development.
“The zoning has no floor to land area ratio restrictions enabling full use to made of this site’s substantial land area up to a height limit of seven floors plus basement carpark.”
Sidhwa says one obvious use for part of the site would be for the development of a much needed hotel for Manukau.
“Auckland Council’s development arm — Panuku — has an ambitious plan to lead a major transformation of Manukau and particularly its metropolitan centre over the next 20 to 25 years and a quality hotel would contribute significantly to that as well as benefiting from the revitalisation.
“Businesses in the vast commercial and industrial precincts of East Tamaki, Manukau, Wiri and further south host scores of visitors for whom Auckland CBD hotels are not always ideal.
“Yet their options are very limited with few choices other than the airport hotels, Waipuna Lodge in Mt Wellington and the Quest Hotel and serviced apartments at the Highbrook Business Park in East Tamaki.
“Goodman has cited high occupancy levels at the Quest and a shortage of visitor accommodation in Auckland as the catalyst for a substantial expansion project underway at the Quest.
“This will double its current 62 bedroom capacity and clearly demonstrates there is a market for hotels outside of central Auckland.”
Sidhwa says a multi-level hotel would enjoy phenomenal brand profile to passing traffic on SH1.