Passive income, long-term potential at Manurewa site
A large-scale landholding anchored by a government tenant offers buyers the opportunity to secure a property that provides a steady rental stream and long-term redevelopment potential.
7 Alfriston Rd, Manurewa, includes a twostorey office building and a 152sq m dwelling on an 8213sq m freehold site.
The property is zoned Residential–Terrace Housing and Apartment Buildings 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 2161sq m 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. Its lease runs until December with two further rights of renewal for two years each, creating a final expiry of December 2028.
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 SH1 and SH20, and benefits from the convenience of the Waterview Tunnel.
Colliers directors David Burley and Matthew Barnes are marketing the property via deadline private treaty closing 4pm, Wednesday March 27, 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 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 says there is considerable longterm 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.
“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,” he says. “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 says the growth of Manurewa’s population has 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.”