Once-in-a-lifetime chance to transform Manukau
An unprecedented opportunity to unlock the potential of six substantial redevelopment sites in the key Auckland growth hub of central Manukau is being presented to the market.
Colliers International’s Consulting team is inviting expressions of interest to develop one or more of the superbly located properties. Five are development sites, being released for development for the first time, and the other is Kotuku House, an existing office building.
Developers are also being invited to express their interest in fulfilling Auckland Council’s office expansion requirements, which includes 2,000sq m of new campus-style office space.
The Metropolitan Centre-zoned properties are presented for future development on behalf of Auckland Council’s urban redevelopment agency, Panuku Development Auckland.
The key outcomes required are affordable housing and employment growth, but all permitted uses of the sites will be considered.
Alan McMahon, National Director of Consulting at Colliers International, says it is a one-of-a-kind opportunity to participate in shaping Manukau’s urban renewal.
“Manukau is developing as the thriving heart and soul of the south, and one of three Auckland centres outside the CBD prioritised for growth through to 2050.
“Panuku is helping to drive this growth through its ‘Transform Manukau’ redevelopment programme, which aims to ensure Manukau Central reaches its full potential.
“To achieve this, Panuku is making council land available for development, at the same time as investing in public amenity development and upgrades.
“All six sites for redevelopment are located at the heart of the Transform Manukau project area. The area benefits from excellent proximity to the new bus and train stations, tertiary education providers, offices, civic services, and numerous retail, entertainment, leisure and cultural experiences.
“The sites on offer all have Metropolitan Centre zoning, which allows for high-rise development and a wide range of permitted uses.
“This is a truly unique opportunity to help reshape the future of central Manukau.”
The six freehold sites have a total land area of some 2.7ha. Five are currently used for on-grade car parking, while the sixth is an office building for sale and leaseback.
The car park sites include a 2,542sq m corner site at 8 Davies Avenue, a 1,753sq m site at 9 Osterley Way, and a 5,569sq m corner site at 31-33 Manukau Station Road adjoining the bus station.
Two sites have extensive road frontages, offering substantial profile for future developments. These are a 6,500sq m site with about 140m of frontage at 14 Davies Avenue, and a 9,713 sqm property at 50 Wiri Station Road with about 230m of motorway frontage to State Highway 20.
Panuku Development Auckland Chief Executive Roger MacDonald says with all the focus on the south of Auckland currently in terms of public investment, the opportunity to develop these prime sites in the heart of Manukau is one not to be missed.
“These sites have the potential to really catalyse the regeneration of central Manukau and we’re looking for development partners who share the enthusiasm for the potential of this space.
“In return interested parties will get a chance to input into the wider planning process, as part of the transformation process.”
The office building at 4 Osterley Way, Kotuku House, has a net lettable are of 3,969sq m on a 910sq m site.
It is proposed to be offered for sale and leaseback to Auckland Council on a four-year initial lease term, with three rights of renewal of one year each.
Chris Farhi, Director of Strategic Consulting at Colliers International, says the sale and leaseback will allow Auckland Council to accommodate its staff while the office expansion project is delivered.
“This presents an excellent opportunity for a developer to draw on holding income while new office space is built for Auckland Council elsewhere in the centre,” he says.
“Once council has moved into its new offices, the purchaser will then have the opportunity to redevelop 4 Osterley Way to a higher and better use.”
Auckland Council requires 2,000sq m of new office space, which would bring its total in Manukau Central to some 9,000sq m.
The preferred new development would be a low-rise, campus style office complex with minimum floor plates of 1,200sq m.
Farhi says the requirement for new space is in line with the ‘hub and spoke’ model that Auckland Council is transitioning to with its corporate office portfolio.
“Manukau is one of three key hubs for the focus of Auckland’s growth, in addition to the central city, with the other two serving the west and north.
“Council staff in southern Auckland are currently accommodated in the Manukau Civic Centre, Kotuku House, Papakura Service Centre and Pukekohe Service Centre.
“The future southern office hub will consolidate these locations to central Manukau.”
Expressions of interest in one or more of the sites are to be submitted to Colliers International by 4pm on Thursday 15 November, after which parties will be shortlisted.
Criteria to be considered will be the developer’s capabilities, capacity to deliver, track record in successfully delivering similar projects, and corporate and financial structure.
After a competitive dialogue process, Panuku may then choose to enter a detailed request for proposals process to secure development partners for specific sites, or may enter direct negotiations.
The sale of the sites will be subject to development agreements that aim to ensure the properties are successfully developed to agreed standards, within agreed timeframes and achieve development outcomes that align with the objectives of the Transform Manukau programme.
Farhi says Panuku is collaborating with a number of agencies to deliver the wider Transform Manukau programme, including the Southern Initiative and tourism and economic body ATEED.
“Panuku is also working closely with central government to achieve coordinated investment in housing, education, health, transport, and public and community facilities.
“The Transform Manukau programme envisions the area as a hub of affordable and sustainable urban living.
“It aims to build a strong, permanent residential population that lives, learns, plays and works within central Manukau and its surrounding area, growing the population to 10,000 residents.
“Planned upgrades to Hayman Park and Puhinui Stream aim to make these areas attractive, safe and accessible.
“Development momentum is already building, with several significant property transactions recently including the sale of the site for 300 new homes close to Manukau Central in Barrowcliffe Place.”
McMahon says more than 1.66 million people now live in Auckland, and this number is set to increase to 2.4 million people over the next 30 years.
“This growth will require more than 300,000 new dwellings and is expected to lead to the creation of 260,000 new jobs.
“As the anchor for growth in southern Auckland, and the largest civic centre outside of the CBD, Manukau will be a focus for much of this growth.”
Manukau already has a strong civic, administrative, educational and retail focus, integrated rail and bus stations and unmatched motorway connectivity, and several successful Auckland-wide attractions.
Manukau and its surrounding industrial and business areas produce 14 per cent of Auckland’s GDP. Proximity to Auckland International Airport and the Wiri Inland Port strengthen its role as a key growth node.
The new rail and bus stations and planned rapid transport connection to the airport enhance Manukau’s connectivity.
McMahon says being close to public transport makes it easier and more attractive for people to live, work and study in this area.
“Manukau is also traditionally cheaper to establish offices or to buy or rent homes, than many other parts of the city, which will be a magnet for residents and businesses.”
Manukau is home to two major tertiary providers, AUT and MIT, as well as numerous schools.
It is also a strong visitor destination with leisure and entertainment facilities that include the Manukau Events Centre, Rainbow’s End and the Wero Whitewater Park.
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