The last sizeable freehold development site in Wynyard Quarter with holding income has sold for approximately $89 million to Mansons TCLM, with future plans for development of the site underway.
The highly coveted 9,793 sqm site spans an entire city block between Beaumont, Packenham, Daldy and Gaunt Streets, and was purchased with existing resource consent in place for a substantial redevelopment.
Colliers’ Capital Markets team was exclusively appointed to market the property in a two-stage international expression of interest campaign that garnered significant interest from local and offshore parties.
Peter Herdson, National Director of Colliers’ Capital Markets says the enthusiasm for purchasing and unlocking the development site was enormous, with the property’s potential hard to overstate.
“Opportunities to acquire freehold development land of this scale, and in such a sought-after location, are incredibly rare.
“Wynyard Quarter is one of Auckland’s fastest growing and most exclusive commercial and residential precincts. It’s already home to many of New Zealand’s largest corporations as well as award-winning residential developments and some of Auckland’s best hotels and eateries.
“While much of the CBD’s waterfront land is on leasehold tenure, this site holds the significant advantage of being freehold with favourable zoning and an existing resource consent.
“However, there is a possibility that the new owners will revisit the site’s potential and we could see a range of uses that complement the surrounding built environment.
“This is without a doubt one of the best Auckland CBD development sites to come to market in recent years, and we’re excited to see its potential unlocked by Mansons TCLM who continue to be very active in the commercial and residential sectors in Auckland.
“Most recently they have undertaken the development of 155 and 136 Fanshawe Streets but they have also started major new projects in Albert Street in the Auckland CBD and Carlton Gore Road in Newmarket this year.
Director of Mansons TCLM, Culum Manson says: “We are familiar with the opportunity that this strategic freehold land acquisition provides given our recent track record in the area. We are excited about unlocking the potential of the site and providing a suite of world-class premises for people to live, work and play.”
Richard Kirke, a Director of Colliers Capital Markets team says the sale shows that demand for developable land in Auckland is extremely high.
“Colliers has transacted more than $500m in development land sales in Auckland in the last year since the first Covid-19 lockdown in March.
“We are seeing demand for development land outstrip supply across the market. Demand for land is broad based, with residential, commercial and industrial land all strongly sought after.
“Key drivers of this investor demand are New Zealand’s low interest rates, demand and supply imbalances, encouraging demographic fundamentals despite travel and visitor restrictions and a positive long-term outlook.
Jason Seymour, Capital Markets Director notes Wynyard Quarter is highly sought after by commercial developers as it becomes one of the most exclusive office addresses in Auckland.
“The sale demonstrates robust long-term confidence in the market and is a real Council-led masterplan success story.
“Wynyard Quarter is Auckland’s newest waterfront neighbourhood going through one of the largest urban regenerations in New Zealand.
“The 37ha area is in a period of intense redevelopment, which has seen it transformed from a closed industrial area to a high-quality mixed-use precinct over the past decade.
The transformation is being led by Auckland Council’s development arm, Eke Panuku Development Auckland, with the regeneration set to continue for at least another ten years through to 2031.
Numerous high-profile private developments have been completed in recent years, attracting some of New Zealand’s largest corporate occupiers. Wynyard Quarter is now home to the national headquarters of ASB, Air New Zealand, Kiwibank, Genesis, Microsoft, Fonterra, IBM, Datacom and many more.”
Seymour says, “the area has added over 50,000 sqm of office space in the last five years, an increase of over 100 per cent, compared to some 30 per cent growth in the wider Auckland market.
“This growth has been matched by strong tenant demand with Wynyard Quarter fully occupied with zero direct vacancy at the end of 2020.
“Fu Wah had undertaken significant pre-assessment works on developing the site over the past few years, but after reviewing their investments and development plans, they chose to provide others the opportunity to unlock the site while they focus on other endeavours in New Zealand.