The transaction took place during New Zealand's Covid-19 coronavirus lockdown, demonstrating long-term confidence in the market
The former Caughey Preston Trust site in the prestigious Auckland suburb of Remuera has been sold to a local buyer.
The transaction took place during the Level 4 coronavirus lockdown, which agents say demonstrates confidence in the market’s long-term fundamentals.
Situated on a 3.17ha landholding at 17 Upland Road, the property comprises a former rest home established by the Marianne Caughey Smith-Preston Memorial Rest Homes Trust Board.
Blair Peterken, Capital Markets Director at Colliers, says it is the last strategic landholding of scale in Remuera.
“We had very strong interest in the site throughout the expressions of interest campaign.
“Despite challenging market conditions during the campaign, it is clear that investors and developers took a long-term view and remained confident in the market’s underlying fundamentals.
“We had a terrific response from the market and are thrilled with the final outcome.”
Located in what is arguably New Zealand’s most affluent suburb, the property presents one of the largest redevelopment opportunities in the country.
Josh Coburn, Director of Site Sales at Colliers, says: “The size, zoning and location made it suitable for a wide range of options including residential, build-to-rent housing, aged care, education, subdivision, or a mix of uses.”
It is understood the purchaser intends to develop a comprehensive, master-planned residential project on the site.
Gareth Fraser, Auckland Investment Sales Director at Colliers, says: “The end result was a freehold sale that was favourable to both vendor and purchaser, making this a great outcome for all.”
The Caughey Preston Trust was the legacy of pioneering businesswoman and philanthropist Marianne Caughey Preston MBE, who was a founder of Auckland retail institution Smith and Caughey’s.
She died in 1938, leaving most of her self-made estate to the establishment of a trust to provide rest home care for the ‘infirm, aged or those suffering hardship’ in Auckland.
The rest home was subsequently established in the 1960s and evolved to its completed form over 60 years of expansion.
In 2017, the Trust Board resolved to close and decommission the rest home, hospital dementia and rental unit operations and began a strategic review to determine how to continue Marianne’s mission now and into the future.
As part of that review, the Trust appointed Colliers to sell the site so the sale proceeds can be used to ensure Marianne’s legacy to provide care continues in perpetuity.
Peter Herdson, National Director of Capital Markets at Colliers, says: “Whilst the property has now sold, it is likely that nothing will change on-site for 18-24 months.”