An aerial view of Silverdale with the eight hectare site for sale at 216 Small Rd bordered in red.
One of few remaining large sites available for commercial development in Silverdale is for sale after 70 years of family ownership.
The 8.0937 hectare site at Lot 216 Small Road, featured in Bayleys' latest Total Property portfolio, is close to the SH1 gateway entranceway to the rapidly expanding township and is also adjacent to the Silverdale Park and Ride.
"This is arguably the highest profile development site in Silverdale with its gradual rise from the motorway and being next door to the bus station," says John Algie of Bayleys North Shore Commercial who, with colleagues Damian Stephen and Rosemary Wakeman, is marketing it for sale by tender closing on September 29 unless it sells beforehand by negotiation.
"It is also the integral business part of the 40 hectare Hibiscus Coast Gateway Zone which was approved by the Environment Court last year," Algie says. "This part of the zone allows for the development of a wide range of commercial buildings as well as work and live premises."
The property is currently undeveloped pasture land with a frontage onto Small Rd on its northern and western boundaries. It is also directly across Small Rd from the Hibiscus Busway Station which is accessed off the Hibiscus Coast Highway. Once the whole Gateway zoned area is developed, the property will also be accessible from Hibiscus Coast Highway and East Coast Rd. Zoning of the land allows for up to 50 per cent site coverage, excluding roading, subject to an approved Development Concept Plan [DCP] which envisages how the land will be developed in a comprehensive manner.
"Management of various aspects of the infrastructure, including roading and site engineering, will need to be undertaken in collaboration with the adjoining land owners," says Algie. "Before any meaningful development can occur on any of the sites, a development agreement must be reached between all owners and a detailed DCP - including things like traffic and storm water management - is subsequently submitted for council approval."
Algie says activities that could be located on the property for sale include office, retail and restaurant premises, childcare, recreation and leisure facilities, conference centres, hospitals, health and welfare services.
"The live and work overlay on 1.8ha of the property permits ancillary residential units to be associated with business premises and a retirement village could also be favorably considered for this part of the site," he says.
"The combination of a substantial land holding in a high profile location within one of Auckland's fastest growing areas, plus a flexible commercial zoning, makes this a compelling development or landholding investment opportunity," says Algie.
"While benefitting from huge exposure to traffic travelling on State Highway 1, the property is also at one of the main entry points to Silverdale's rapidly expanding residential and commercial growth hubs. The area is expected to continue experiencing substantial population growth as the availability of land and affordability of housing attracts new residents from both the Auckland and surrounding regions."
Auckland Council has estimated that the Hibiscus and Bays area, of which Silverdale is part, will have an additional 10,000 households by 2042 and Statistics New Zealand is forecasting the population to swell to 146,600 in 2043 from 89,932 in 2013.
"That represents an average annual population growth of 1.5 per cent, ahead of projected overall average Auckland growth of 1.2 per cent per annum," says Algie. "Employment numbers are expected to grow by 40,000 over the same period creating strong accompanying demand for business premises."
Rosemary Wakeman says the Silverdale/Orewa area is experiencing an unprecedented surge in construction activity. "Both residential and commercial building activity is evident as the development sector looks to accommodate the rapidly expanding population and to provide amenity to support it. The demand for new commercial property has been well illustrated recently by a surge in resource consent approvals."
Within the residential sector, there is a raft of projects underway or proposed for the near future. The Millwater development, visible from SH1, is one of the largest in the Auckland region and has met with strong sales success. Work began in 2009 on the staged development on more than 300ha of land between Silverdale and Orewa which, upon completion, will comprise about 3000 homes that will house around10, 000 people.
In addition to Millwater, further large scale residential development is underway at the former Peninsula Golf Club and at a number of sites adjacent to the Hibiscus Coast Highway and Grand Drive located a short distance north of the property for sale.
A 37.5ha block of land has also been designated a Special Housing Area. Provision has been made for residential development within the Gateway Zone on land to the east and south of the property for sale.
"Commercial development has also accelerated in the area with an initial focus on the retail sector," says Wakeman. "The last three years has seen the development of 2.3ha of retail space in the Silverdale Retail Centre, anchored by The Warehouse and Countdown with over 30 other shops, as well as a new Bunnings store."
Earthworks are now underway for a proposed four-storey building that will include a 5490sq m Farmers' department store and up to 30 retail stores with almost 400 underground car parks.
Major earthworks and construction have also now begun at the Highgate Business Park, one of the largest mixed use commercial developments in the Auckland region. This is being developed on a 60ha site and is projected to generate about 4500 jobs. It will encompass a mix of light industrial, office, medical and educational style uses as well as some retail space, bars and restaurants.