The largest and last available lot in the first stage of development at the Drury South Crossing business park in South Auckland is up for sale offering owner-occupiers, add value investors or developers the opportunity to secure a prime spot in the 361ha master planned mixed-use precinct.
The 3.439ha rectangular site is located in a high profile corner positon with approximately 190 metres of frontage to Maketu Rd, one of the main arterial roads in the massive $800 million project being undertaken by Stevensons Group. Currently under construction, Maketu Rd will connect with a recently completed new interchange with State Highway One.
"Offering exceptional exposure to what will be one of the busiest roads in the business park, this flat and regular shaped site is the jewel in the crown in Block One of the project and will be one of the best sites available in the whole development," says Scott Campbell, national director, industrial for Bayleys Real Estate which has been appointed to market the site
"Maketu Rd will separate a large industrial precinct from a commercial precinct whose proposed central hub is directly opposite the land we have for sale."
Campbell says the site's Light Industry zoning allows for many industrial activities as of right, including light manufacturing and production, storage, logistics, transport and distribution activities.
"In particular, it could suit a company looking for a high profile branding opportunity in this landmark development which could incorporate its head office or a large showroom area to showcase its products or services.
"However, given the location of the site on a prime corner position at the beginning of the industrial area and directly opposite the commercial hub, prospective purchasers may wish to investigate the potential for any higher or better use that the site would lend itself to, subject to council approval. For example, a new owner could potentially apply for a resource consent for another complementary use such as a large trades-related bulk retail complex."
Campbell is marketing the site with Bayleys Auckland industrial colleagues Ben Bayley, James Hill and Sunil Bhana, with expressions of interest being sought closing 24th October, unless sold prior.
Drury South Crossing is located in the Drury basin, east of the southern motorway (SH1), between the Drury interchange to the north and the Ramarama interchange to the south. The Drury Quarry, which is located at the base of the Hunua foothills, forms the eastern edge of the Crossing site and is being incorporated into the industrial precinct.
Stevensons has recently sold this and other quarries it owned to Fulton Hogan Ltd to concentrate on the Drury South Crossing project. Following many years of planning, consultation, design work and obtaining the necessary consents, a massive earthworks and civil engineering programme is now well underway. This will provide the necessary infrastructure platform for a variety of industrial, commercial and residential buildings which are expected to start to rapidly take shape from early 2021.
Drury South Crossing chief executive Stephen Hughes says approximately five million cubic metres of soils are being shifted as part of the earthworks which will also include the laying of 11.5 km of water supply pipes, 5.7km of waste water pipes and 8km of stormwater drainage.
He says the company has worked closely with Auckland Council, including Auckland Transport and Watercare Services, to ensure completion of major ground works is closely coordinated with various projects being undertaken by private enterprise.
Hughes says there has been strong interest in and demand for sites that have so far been released for purchase with early sales running ahead of expectations. Ten lots in Block 1 and a further nine lots in the neighbouring Block 2 have either sold unconditionally or are under conditional contract.
Land titles for these sites which range from 7000 sq m to close to two hectares are expected to be available from late next year onwards with construction of buildings likely to follow shortly thereafter. Sales to date have been to a mixture of local and national owner occupiers, investors and developers for industrial warehousing, light engineering and/or yard use.
The majority of sales so far have been to owner occupiers which Scott Campbell says is not surprising given the acute shortage of and high cost of industrial zoned land available for purchase in other parts of Auckland, particularly sites of sufficient size for businesses wanting to build big warehouses.
"In recent years, most industrial zoned land which can be built on in Auckland has been in the hands of longstanding corporate landlords who build for tenants and are long-term holders of the finished product.
"Drury South Crossing is one of the only opportunities for large-scale owner occupiers - or developers - to secure land at competitive rates. Owner occupier demand has been a key driver of the commercial and industrial property market for some time now on the back of unprecedentedly low interest rates.
"Businesses are making the most of very attractive borrowing costs to move into the property market. Buying land means they can also build exactly what they require rather than often having to compromise if they acquire an existing vacant building.
"The larger sites at Drury South Crossing also provide the flexibility for expansion at a later stage which means companies can future proof their position within Auckland's next major business hub in an area which will undergo enormous growth over the next 10 to 20 years."
Ben Bayley says another big attraction for businesses is Drury South Crossing's pivotal position alongside SH1 on the "Golden Triangle" encompassing the key markets of Auckland, Hamilton, and Tauranga. "It's the perfect staging point for accessing close to 60 percent of the North Island's population generating approximately 52 per cent of the country's GDP."
Bayley says Drury is set to benefit from $2 billion of infrastructure investment over the next 10 years, with with planning at various stages for town centres, retail and community facilities, a school, a railway station and a hotel.
Hughes says the Drury South Crossing concept design seeks to work with the existing topography and structure of the basin.
As well as providing a wide range of industrial, commercial and residential property, it will incorporate approximately 90 hectares of open spaces for the public to enjoy, including recreation areas, walking and cycling tracks.
An important component of this will be the restoration and enhancement of the Hingaia and Maketu Streams, which will
meander through the public spaces.
"These waterways are being remediated, and there will be extensive native planting undertaken," says Hughes. "This will become a feature of the overall development, and a new wetland area for stormwater management will treat and improve water quality entering the Hingaia stream."
Stevensons has sold 45ha of land between the commercial precinct and the motorway to Classic Developments which will manage the development of up to 800 houses with over 70 per cent of them to be priced below $800,000.
Hughes says Stevensons and Auckland Council have worked collaboratively to ensure there is sufficient housing within and around Drury South Crossing to provide homes for an estimated 5,000 workers who will be employed there. A large proportion are expected to live in the surrounding area.
Three new housing estates adjoin the business park and Auckland Council structure plans for Drury, Pukekohe and Paerata could see more than 23,000 new houses built in these areas over the next 15 years.