A big freehold development site, suitable for a hotel or retail centre, is for sale on the fringe of Manukau City adjacent to the Vodafone Events Centre and Vector Wero Whitewater Park.
"There are a number of possibilities for this prime site," says JLL agent Tommy Zhang who is marketing 8-10 Pacific Events Centre Drive for sale through an expressions of interest campaign closing at 4pm on Wednesday May 31.
"Potential developments could include a hotel, retail outlets, food and beverage services and serviced apartments. The property will be fully serviced and it is ready for development, so it could be built on immediately."
Zhang says the positioning of the 8816sqm site on the eastern side of Great South Rd gives it excellent exposure to the State Highway 1 southern motorway.
"It's also within walking distance of Westfield Manukau City shopping centre, Manukau railway station, Manukau Institute of Technology, and Rainbows End theme park," he says.
"The land, which is zoned for Mixed Use development and as a special housing area, offers investors wide scope for commercial development."
Under the Auckland Unitary Plan, Mixed Use development zones allow for residential and smaller scale commercial activity. They can also accommodate a range of possible building heights depending on the context.
Zhang says the land for sale is also located within the 9.4ha Pacific Gardens development in Manukau - one of the biggest special housing areas under the Auckland Housing Accord.
"Over the next five to seven years, it is envisaged that this $700 million project will deliver more than 1100 homes that will house over 3000 people.
"Chinese-owned company Changda International Development is leading the Pacific Gardens project and has a sister company called Changda International New Zealand, which is developing a larger 43ha site in Orewa."
Tom Barclay, JLL's national research manager, says "alternative" property assets are growing in popularity which include student accommodation and retirement villages along with hotels. He says these types of assets accounted for 17 per cent of all transactions over $5m.
"They are major investment sectors overseas and are starting to become more frequently traded in New Zealand," Barclay says. "Much of the demand stems from demographic changes, increased global mobility and changing lifestyle patterns. An ageing population and growing student and tourist numbers, are generating increased opportunities for commercial property developers and investors here."
Zhang says South Auckland is a distinctive area that benefits from ethnic diversity, a younger population, and a concentration of employment in manufacturing and freight logistics. "It is also home to Auckland International Airport and has retail links to both Auckland and Tauranga ports."
"In addition to this, more than a third of Auckland's employment growth to 2040 is projected to be in South Auckland."
He cites Statistics New Zealand as predicting that South Auckland's population will grow substantially between now and 2043. "It projects that the local board area of Manurewa will grow from 92,800 residents in 2016 to 120,900 in 2043 - a 30 per cent increase. Similarly, the Otara-Papatoetoe local board area is predicted to grow from 86,300 residents in 2016 to 127,900 in 2043 - a 40 per cent increase."
Zhang says the site on offer has "significant retail pulling power and potential for business growth" given the population increases forecast for the area.