Prime Meadowbank land bank or development site with holding income

Prime Meadowbank land bank or development site with holding income  hero

Nine freehold titles with intensive residential zoning are for sale in the heart of Meadowbank, providing an opportunity to land bank with holding income in one of Auckland’s most popular suburbs.

Located just off Remuera Road, the offering at 6-14 Meadowbank Road comprises eight individual dwellings on a combined site of 5,244sq m.

The land is zoned Terraced Housing and Apartment Block, allowing a new owner to explore a range of residential redevelopment options.

Blair Peterken, Capital Markets Director at Colliers International, says the site has abundant future potential.

“Occupying an elevated ridgeline position with views of Auckland CBD and Waitematā Harbour on ground level, the land offers an unbeatable combination of location and scale in one of Auckland’s most popular residential suburbs.

“It is offered for sale with an approved resource consent for a residential development with a mixture of terrace housing and apartments. The future development potential for the site is enormous especially in well-established locations like Meadowbank.

“The site’s eight existing dwellings are fully tenanted and return $292,880 in combined annual rent. This provides an attractive source of income for land-bankers seeking capital gains or developers looking to reposition the site in future. The income generated from the eight houses could potentially yield a greater return than current term deposit rates in the bank.

“The ridgeline location would allow a considered redevelopment scheme to provide panoramic views across the Waitematā Harbour to the city, out to Rangitoto, and the picturesque neighbouring suburbs. The neighbouring sites in front have a lower density zoning which helps to protect the stunning views.

“With so much potential, this is a prime opportunity to acquire a site that offers up numerous development options.”

Colliers International is marketing 6-14 Meadowbank Road for sale by way of an expressions of interest campaign closing at 4pm on Wednesday 25 November, unless sold prior.

David Burley, Associate Director of Investment Sales at Colliers, says it is superbly located in a popular residential suburb on the northern slopes of Auckland’s Eastern Bays.

“Meadowbank oozes understated charm and sophistication, and is closely linked to the well-heeled suburb of Remuera and the waterfront villages of Ōrākei, Mission Bay and St Heliers.

“The suburb offers quality schooling, including Meadowbank School, as well as good transport routes and significant amenity. Popular nearby destinations include Upland Road Village, the Meadowbank Shopping Centre and Countdown supermarket which is only 200 metres away, and Ōrākei Bay Village, which boasts a range of retail and hospitality options including Farro Fresh.”

Josh Coburn, Site Sales Director at Colliers, says there is huge demand for residential development opportunities across Auckland.

“Residential property, and land in particular, is seen as a resilient investment in times of economic uncertainty. This has translated to strong sales, with Colliers transacting more than $350 million of development land since the first Covid-19 lockdown.

“Developers are seeking sites of scale, particularly in prestigious city fringe locations with good amenity. This land on offer in Meadowbank ticks all these boxes, with the added benefit of an approved resource consent for a well-considered development.”

The large overall site provides 52m street frontage to Meadowbank Road, set back off Remuera Road. It comprises eight freehold titles, each with an individual dwelling, with a ninth freehold tile providing shared access.

The existing titles include:

  • 6 Meadowbank Road – a 613sq m lot fronting Meadowbank Road comprising a 1930s-era dwelling of 129sq m with three bedrooms, two bathrooms, two car parks and a deck, rented at $36,400 per annum;
  • 8 Meadowbank Rd – a 662sq m lot fronting Meadowbank Road comprising a 1920s-era dwelling of 239sq m with four bedrooms, two bathrooms and two car parks, rented at $41,600 per annum;
  • 10 Meadowbank Rd – a 609sq m lot with shared access comprising a 1950s-era dwelling of 181sq m with three bedrooms, two bathrooms and one car park, rented at $36,000 per annum;
  • 10a Meadowbank Rd – a 457sq m lot with shared access comprising a 1980s-era dwelling of 136sq m with three bedrooms, two bathrooms and one car park, rented at $25,480 per annum;
  • 10b Meadowbank Rd – a 502sq m lot with shared access comprising a 1980s-era dwelling of 166sq m with three bedrooms, two bathrooms and three car parks, rented at $26,000 per annum;
  • 12 Meadowbank Rd – an 874sq m lot with shared access comprising a 1990s-era dwelling of 310sq m with four bedrooms, three bathrooms, two car parks and a deck, rented at $42,900 per annum;
  • 12a Meadowbank Rd – a 417sq m lot with shared access comprising a 1990s-era dwelling of 165sq m with three bedrooms, two bathrooms, two car parks and a deck, rented at $42,900 per annum;
  • 14 Meadowbank Rd – a 612sq m lot fronting Meadowbank Road comprising a 1940s-era dwelling of 260sq m with four bedrooms, three bathrooms and two car parks, rented at $41,600 per annum;
  • A 478sq m freehold lot providing shared access to the five dwellings without street frontage.

Coburn says the size and configuration of the overall site provide scope for numerous development outcomes.

“The current resource consent, which is valid to July 2022, allows for the development of two distinct building designs.

“The consent provides for a six-level apartment building fronting Meadowbank Road, and seven standalone townhouses to the north of site.

“The apartment building would provide for 58 units in a mix of one, two and three-bedroom units along with a two-level basement providing for 130 car parks.

“The three-storey townhouses all have northern outlook to a leafy and peaceful environment, with parking and multi-purpose room on the ground floor, generous living area on the middle floor, and three bedrooms on the top floor.”

Redesign concepts have also been prepared; one which fits within the original consented envelope but reduces the size of the apartment units, and another which reduces the size of the apartment building and provides for terraced housing across the balance of the site.

Coburn says this blend of potential offerings would have wide appeal to a variety of buyers.

“The units would suit young professionals seeking proximity to town and a vibrant lifestyle, through to empty-nesters trading down from large, valuable homes without wanting to leave familiar surrounds.”

Peterken says the site has plenty of potential that is ripe to be maximised.

“Whether you leverage the existing resource consent, explore new development options or simply land bank with holding income, this is an outstanding opportunity to acquire a prime landholding in a premium Auckland location.”

Related Experts

Blair Peterken

Director | Capital Markets

Auckland CBD

After more than a decade in Australia’s highly competitive commercial property sector, Blair joined Colliers International NZ as Director in the Capital Markets team in April 2017.

Specialising in the sale of larger commercial assets and mixed-use sites around New Zealand, Blair brings a high level of energy and diligence to the industry. His extensive knowledge and educational background ensures he is well-equipped in progressing and developing the Capital Markets team.

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Previous Experience

From 2014 – 2017, Blair was Director and Head of JLL’s South Sydney office where under his leadership, the company  grew from third to first in the South Sydney market in both leasing and sales. In 2015 he was the company’s highest fee earner across the Australian industrial business. Blair specialised in the sale and leasing of larger industrial and commercial assets including mixed-use development sites within the South Sydney market.

Prior to this he was Head of Industrial, South Sydney at CBRE. While at CBRE, Blair won the prestigious Circle of Excellence Award twice for his performances and was highest fee writer in the South Sydney office in 2012 and 2013.

Peterken’s top transaction while in Sydney  was the 2014 sale of a 4.9ha business park in Rosebery, South Sydney to Meriton Group  for A$190,000,000

His two biggest leases were the single largest leasing transactions in South Sydney in their respective years. In 2011, he leased a Goodman-developed, 12,400sq m warehouse and office in Mascot to logistics company Toll, and last year, he leased a Meriton-owned 22,000sq m site in Pagewood to WSI Logistics.

 

A selection of notable sale transactions:

  • Sale of St Kentigern Girls School, Remuera - $40,000,000 +
  • The General  Buildings, 29-33 Shortland Street, Auckland - $42,000,000
  • 110 Symonds Street, Auckland - $38,500,000
  • 1-55 Rothschild Ave, Rosebery - $190,000,000
  • Central Park Business Park,  Greenlane - $209,000,000
  • Bunnings Hamilton South - $25,100,000
  • The Warehouse, Blenheim - $16,380,000
  • NZI Centre, Auckland - $63,000,000
  • Royal Heights Shopping Centre, Auckland - $17,000,000
  • 75 Karangahape Road, Auckland - $23,300,000
  • 5 Nelson Street, Auckland - $9,000,000
  • 66-80 Broadway, Newmarket - $65,000,000

 

View expert

David Burley

Associate Director

Auckland CBD

David is an Associate Director in the Investment Sales team in Auckland, specialising in the sale and lease of commercial property in Auckland.  Since joining Colliers David has been involved in a number of high profile transactions in the CBD and city fringe. Whilst David offers a broad range of services, his areas of expertise focus on the sale and acquisition of investment properties (office, retail or industrial), the re-positioning and refurbishment of under-utilised buildings, commercial developments and land sales.

Prior to joining Colliers, David earned a law and politics degree from the University of Otago and had 10 years professional experience as an investment banker, financial consultant and commercial lawyer. David's broad professional experience gives him a strong commercial understanding and a highly beneficial insight into the mindset of how vendors and purchasers operate. Furthermore, David's technical knowledge of mergers and acquisitions and corporate/commercial law are vital when negotiating on behalf of his clients.

View expert

Josh Coburn

Director | Site Sales

Auckland West

Tenacious, personable and driven, Josh Coburn draws on 16 years' experience in New Zealand's property sector in his role as Director of Site Sales at Colliers International. His key focus and passion are delivering quality development opportunities to the market and acting as a partner in the development process to see projects come to fruition.

Futhermore, Josh is the General Manager of Collier's West Auckland Business, overseeing 5 brokers in a rapidly emerging Metropolitan market.

Josh re-joined Colliers International in 2015 after four years working as the Development Manager for Haydn & Rollett Construction - a role in which he focused on development of commercial and industrial properties joint ventures, and commercial-scale residential opportunities.

View expert