Wairau flooding site’s potential to be tapped
A North Shore property damaged by Auckland’s devastating Anniversary Weekend floods will feature in plans to ‘build back better’ with more resilient water infrastructure, thanks to a transaction brokered by Bayleys Real Estate.
The 2288 sq m multi-tenanted property at 92 and 94 Wairau Rd, Wairau Valley, is the home of a car dealership and motorcycle repair and service centre.
It was recently purchased for more than $6.9 million by Watercare, Auckland Council’s water and wastewater arm, as part of plans to expand and improve local pump station facilities.
Watercare had to carry out urgent repairs to the Wairau Pump Station after rising waters overwhelmed and destroyed two pumps in the January weather event.
Parts of Wairau Valley were hit hard, with images of its inundated Pak’n Save supermarket going viral, while overwhelmed wastewater facilities saw significant volumes of raw sewage flow to the sea.
The flood-affected property was later placed on the market for the first time in 21 years, through Ranjan Unka, Terry Kim and Trevor Duffin of Bayleys North Shore Commercial.
After a campaign generating strong inquiry and multiple offers, the team recently clinched the sale to Watercare at a price exceeding pre-flood sales of comparable sites in the area.
Unka said the team worked hard to accentuate the site’s many positives. “The property encompasses a substantial 2288sq m across two freehold titles with dual access, plenty of parking and around 40m of road frontage to main arterial Wairau Rd. This represents an excellent canvas for any number of future uses.
“Buildings totalling approximately 912sq m house four short and long-term tenants, with a car yard and retail/showroom tenancy fronting Wairau Rd, plus a workshop occupied by a mechanic and offices leased to a tax accountancy at the rear,” said Unka.
The tenancies generate a combined total income of $232,326 a year.
Kim said Watercare would see out the leases – some of which were renegotiated onto more workable terms by the Bayleys team – while it considered its plans for the property, which borders two other Watercare-owned sites including existing pumping infrastructure.
To maximise the breadth of interest, the Bayleys sales team promoted the versatility of the property, which lent itself to a wide range of potential business activities and buyer types.
Flexible light-industrial zoning and designation in a key growth corridor underpinned attractive possibilities for redevelopment with large-format retail and multi-level buildings of up to 20m. “The existing lease profile was considered likely to appeal to add-value investors and business occupiers requiring easy access to major transport routes and proximity to other commercial and industrial activities,” said Kim. Ultimately, it was proximity to pumping infrastructure that clinched the deal, with Watercare acquiring the site for $6.975 million.
The sale price equates to nearly $3050 a square metre. This compares favourably with the pre-flood sale of a comparable property directly across the road, which was bought by a major car dealer in October 2022 for around $2800 a square metre.
Duffin said the sales campaign also highlighted the property’s location in a thriving commercial precinct alongside big names like Mitre 10 Mega, Bunnings, Pak’n Save and big-brand car dealerships.
“We were able to generate huge interest and inquiry in a location that, though it was hit hard by unprecedented flooding, is still extremely desirable and in demand with very low vacancy.
“The resulting competition and multiple offers enabled us to fetch a sale price for the vendor that exceeded expectations.”