Watercare washes its hands of Grafton site
A high-profile city-fringe 791sq m freehold parcel of land in Grafton, with a great back story, is now for sale.
Formerly home to a car yard, Watercare acquired the corner site in 2017 to progress the city’s biggest-ever water project – the $400 million pipeline from Manukau to the Khyber Pass reservoir.
The project was key to boosting the water network’s capability and resilience providing for population growth. It is now complete after more than a decade, with Bayleys appointed to divest the site at 176-184 Khyber Pass Rd with vacant possession.
A developer could optimise and unlock the best use for the site while receiving income from reinstatement of a consented digital billboard and pursuing other temporary income streams.
The land is currently held in three titles but will be merged into two. The larger 791sq m title is available for a new owner, with Watercare retaining a meagre title for maintenance purposes.
The flat site is primarily zoned BusinessMixed
Use with a small component designated Strategic Transport Corridor.
The site also has a Walkable Catchment overlay under Auckland Council’s Plan Change 78 which provides for greater building height and housing density for neighbourhood, local and town centres.
There is around 30m of west-facing frontage to side road Edward Wayte Place, and
around 16m frontage along Khyber Pass Rd with north-facing views over the southern motorway towards the city and Rangitoto.
The property is just a few metres from the SH1 and Western motorway interchanges and is handy to Grafton Station.
Tenders close on December 5, unless sold prior, through Phil Haydock and James Were of Bayleys Auckland Central.
Haydock says it is time for the prime site to go back into private ownership, and there are numerous options to be explored.
“The property currently returns an annual holding income of $67,500 plus GST through until November 2024 via a digital billboard lease agreement. The billboard was removed to facilitate Watercare’s works and due to the short term remaining on the lease, it was decided not to reinstate.
“A new owner could renegotiate the signboard lease while unlocking other income until higher-use development fundamentals come back into line.
“The site could feasibly be redeveloped for residential, hotel, build-to-rent, medical or a commercial-mixed use development.”
Given the Grammar zone location with easy access to the CBD and capacity to draw on the broad catchment of Auckland Hospital, University of Auckland and the Newmarket retail and service precinct, Were says astute investors will recognise the long-hold benefits of the site.