201 Halswell Rd, Christchurch as it was advertised for sale. Photo / Supplied
201 Halswell Rd, Christchurch as it was advertised for sale. Photo / Supplied
Woolworths NZ is selling its 21ha undeveloped Christchurch land site where it won consent for a $300 million mixed-use commercial/housing hub.
Countdown property director Matt Grainger said a large housing component was planned for the site at 201 Halswell Rd "and because of that, we're looking to sell the siteto a developer with expertise in housing, with a leaseback on the completed supermarket. We have had a strong interest in the property, but won't make any further comments until the sale process is concluded".
Up to 250 new homes, 32 apartments, that pre-committed Countdown, offices, medical centre, childcare, gym, cinema, food and beverage operations are elements of the scheme for the land.
Woolworths applied to create 10 large lots for more than 250 homes, 5623sq m of retailing including a 3490sq m supermarket, 1300sq m of carparking, community activities, a childcare centre, swimming pool, cinemas, gym and two-level apartment building with 32 units.
Environment Court consent out in September allows for the new hub on Christchurch's edge. That took three years to win.
In 2018, it sought consent for the mixed-use development but it was not until last September that it won that application to have resource consent granted for the scheme at 201 Halswell Rd/State Highway 75.
Plans were opposed by Christchurch City Council and an adjoining neighbour and property developer Spreydon Lodge, which the court found was trade competition interference, as well as the council whose arguments were also rejected.
Getting the Environment Court case across the line increases the value of that land substantially.
Advertisements for the land said a supermarket was planned.
"Countdown-anchored large scale development site," the sales campaign seal.
The Commerce Commission said last month it wants supermarket land banking to be banned. Its study out last month said freeing up more grocery store land would help the country get more supermarkets.
How the site could look once fully developed. Photo / Supplied
Website 201halswell.com shows that potential for development.
Agents CBRE took the entire mini-farm to market in a deadline sale that closed on March 24.
"Anchored by a long-term lease to a Woolworths NZ subsidiary and with resource consent in place, the time is right for a capable developer, with a strong track record, to take the project forward. With subdivision consent providing for two mixed-use retail super lots and 10 residential super lots expected to accommodate at least 250 residential dwellings, this is a rare opportunity," CBRD advertised.
201 Halswell Rd has the potential to become a $300m hub. Photo / Google Maps
Key pluses were that it was in the growing and desirable suburb of Halswell, 7km from the CBD, a 21ha greenfield development opportunity, had a transformative consented mixed-use scheme planned, long-term supermarket lease, housing and other amenities.
The supermarket business compromised somewhat on its initial plans by refining its proposal and shifting its supermarket 17m and moving the location of the gym.
Spreydon Lodge holds existing resource consents for its planned Halswell Commons housing and community hub to the north of the Woolworths' site. Stage one of that won consent in December 2019 but are not yet implemented.
The site as it is today. Photo / Google Maps
Spreydon opposed Woolworths' plans claiming lack of integration and connection between the proposed buildings, negative transport effects, commercial activities expanding into a residential neighbourhood zone and retail activities, including speciality food, beverage and entertainment, adjacent to the busy Halswell Rd.
"Although somewhat supportive of the proposal, without amendments to certain elements of the proposal, the council's position was that the contents sought by Woolworths should be declined," the September 7 decision said.
The court noted Woolworth's proposal was non-complying on a number of grounds including night-time noise limits in a residential zone. It cited delivery and service vehicles going to and from the property.
"Woolworths contends that Spreydon Lodge, as owner and developer of the adjoining land is a trade competitor, as the retailing activities that it holds consent for are similar to those that Woolworth proposes for its land; each are intending to provide a cluster of fine-grained retail, food and beverage outlets, while Spreydon Lodge also holds consents for a number of as-yet untenanted large format retail stores that could potentially accommodate a supermarket," the decision said.
Many actual or potential adverse effects were agreed to be no more than minor between Woolworths and the council.
Positive effects would include increasing Christchurch's housing supply, new community activities like a medical facility, childcare and public open space and the introduction of commercial activities to meet the nearby neighbourhood's social and economic wellbeing.
What price might Woolworths NZ be expecting for the land? It could be around the $30m mark.
The company was estimated to have spent about $3m winning that court battle "so they'll be wanting around $27m to $28m plus the cost of getting the consent, so around $30m. They'll want to recover costs at least," one source said.
The property is listed as being valued at $27.05m for rating purposes. Current rates are $114,678, according to the Christchurch City Council website.
