Have you walked through the CBD lately and seen vacant sites? Excitement is building for the new rail and convention centre projects. But some schemes planned are either delayed, dropped or sites for sale. Today’s Property Insider column delves into what’s behind Auckland’s undeveloped lots.
Revitalisation of Auckland’s CBD is a hot topic, with completion nearing of the $5.5 billion City Rail Link and the $1b-plus New Zealand International Convention Centre.
But the reality is a little different, with some sites vacant for nearly four decades.
Big plans for development and many new buildings in Auckland Central remain on hold, have been abandoned or deferred indefinitely, indicating tough times.
Insiders have expressed growing concern about a lack of activity, deferrals, delays, abandonment and sites remaining unsold for years, sometimes decades.
“Every day, we’re getting closer to Suva than Sydney,” financier James Kellow of New Zealand Mortgages & Securities said.
“No parking. Crime. Homeless. Almost impossible to get a consent to do anything,” Kellow complained.
A list of sites that remain unsold was sent to Property Insider.
Two developers are still active but Mansons TCLM and Precinct Properties remain the outliers.
Even Precinct is leaning more towards residential lately, having developed the $1b Commercial Bay and extensively in the Wynyard Quarter.
It does plan on developing the twin skyscraper Te Pūmanawa o Tāmaki with Ngāti Whātua Ōrākei for the Downtown Carpark.
But its residential plans are mainly outside of the CBD. Parnell and Newmarket and even, somewhat surprisingly, Dominion Rd are where it has bought more latterly.
Mansons TCLM is demolishing 35 Graham St for a $650m 11-level office building.
Councillor Chris Darby said Britomart and Commercial Bay were “top-shelf examples of what’s possible when there’s clarity of purpose and delivery plans are executed precisely”.
But it was a brave or ambitious developer who would commit to any major residential project in the city centre, currently, Darby said.
The ex-Food Alley and Yates sites on Albert St remain empty, fenced, while Singaporeans ponder the future.
The old Food Alley and ex-Yates building site is between Federal St, Wolfe St and Albert St.
Most of its buildings were demolished, the block fenced with barbed wire on top to stop entry.
This land is owned by Singapore’s Kum family, which also owned Auckland’s Hilton Hotel.
Last year, Deputy Mayor Desley Simpson said it was very sad the site had been left in that state for so long: “Auckland deserves better,” she said of the 4371sq m block.
But Peter Wall, speaking for the Kums, indicated action and said they were committed long-term investors.
“Our goal is to enhance Auckland’s growth and cityscape through property development. We are actively seeking an anchor tenant to collaborate with us in transforming this site into a vibrant commercial precinct that adds significant value to the city,” Wall said.
“Admittedly, the post-Covid economic challenges and evolving business sentiments have presented challenges in moving forward.
“We’re equally focused on ensuring that the development aligns with what Auckland needs as a city.”
Last year, Wall acknowledged the current unsightly aspects of the site but said there were specific reasons for some of those.
A $400m, 41-level scheme to build Queen St apartments beside an historic, long-shut theatre has not materialised.
The St James Suites beside the St James Theatre were planned to be developed last decade.
The apartment site at 304-328 Queen St is now being sold by Ray White’s Banson Chong.
Relianz Holdings Limited Partnership is listed as the owner.
In 2016, the Herald reported how the apartments would not be built.
The developer cited difficulties in getting funding and “difficult lending market conditions”.
“Unfortunately, this means the St James Suites apartment development is not currently viable and the development is on hold until further notice,” the developer said.
The site has now been empty for nearly a decade.
This site has been empty for 36 years, used as a ground-level carpark between Fort St and 28 Shortland St.
The Auckland Star offices were demolished in 1989.
This year, property experts debated the development potential of the site.
Simplicity Living’s Shane Brealey said people had been “trying to crack it” for more than 30 years.
Andrew Crosby of Xpect Property Development told a story of how 63 students were asked what they would develop on the valuable holding just off Queen St.
Brealey said there was no point in a residential project because it was not financially feasible.
Nor were offices, he said.
BusinessDesk reported two years ago that the site was last sold in April 2014 for $26m. Heng Chuang Investment Group is listed as the owner. That company is owned by HC Investment Trustee of Victoria Ave, Remuera.
Not even a tourist attraction on this empty land survived.
The former Royal International Hotel site is at 104-106 Albert St and 5-13 Elliott St.
It is next door to the Atrium on Elliott between Albert St, Victoria St and Elliott St.
The site has been empty of buildings for 38 years.
The hotel was demolished by Chase Corporation in 1987 to make way for a Farmers department store.
It once had a reverse bungee amusement ride operating there.
But that has gone too.
Plans emerged once for the 67-level Elliott Tower but this was never built.
Another big scheme was at 65-71 Federal St.
A massive bronze-coloured scheme apartment project was planned but never eventuated.
Resource consent was granted for a 55-level giant.
The scheme had the name 65 Federal.
Australian developers ICD planned the scheme on what remains the seven-level carpark building on the Kingston St corner.
The tower was approved under the Covid-19 Recovery (Fast Track) Consenting Act 2020.
Matt Khoo, ICD Property managing director, said the opportunity to buy significant development sites in Australia had resulted in the decision to sell the Auckland property.
The Smith & Caughey site is coming to the market, with an agency selection process under way, although director Peter Alexander said the business is in no rush to sell.
The anchor of retailing in the mid-city closed in June and now the board is examining proposals from real estate agencies about the sale process.
It is unusual to have The CAB on the list because the 18-level project has been completed – and successfully.
But it’s on the list because the penthouse and sub-penthouse and other units in The CAB remain unsold.
Congratulations to John Love and Naylor Love for completing this refurbishment of ex-Civic Administration Building offices.
Asked about unsold units, Love said: “Not sure. I’m not really keeping track. Maybe 20. Either way, I still own them and still pay all the B.C. [body corporate] levies etc for any units my company still retains ownership of.”
Winton Land has delayed building the inner-city’s first high-rise retirement village but its chief says the company will still build it.
Chris Meehan, Winton CEO, said just before Christmas he would repay those who put down deposits.
The site is on Beaumont St, opposite Orams Marine.
Meehan said Winton remained committed to its plans.
The company would complete site preparation work, including the piling works and building consenting, he said.
The Wynyard scheme was a big project and Winton would be prudent.
“We want to get the timing in the cycle right,” he said on December 19 last year.
Northbrook Wynyard is part of a wider, more ambitious plan.
A 200-seat wedding venue, new 250-seat waterfront dining/bar building, outdoor pool in a resort-like zone for village residents, new marina piers, dredging the seabed to make it deeper, a new marina and refurbishing many other surrounding buildings are envisaged.
The Symphony Centre office and apartment project is planned beside the Aotea Centre on what was a carpark used for Auckland Council’s fleet behind Bledisloe House.
This scheme has also been cited as a sign of CBD revitalisation.
Again, it may appear unusual for this huge scheme to appear on this list.
Yet consent was granted two years ago but no builder has been appointed. Extensive marketing has, however, been carried out – but how many sales or leasings have been achieved remains unanswered.
Advertising talks of it being a transit-oriented project, due to tens of thousands using the station of the City Rail Link.
The apartments and offices are to rise above the Te Waihorotiu mid-town station.
The developer is Malaysian Resources Corporation Berhad, which advertising says is a leading urban property and infrastructure group founded in 1968.
Plans are by architects Woods Bagot.
Advertising by Colliers said construction is “set to commence later this year” at the intersection of Mayoral Drive and Wellesley St.
RCP director and project development director Cristean Monreal said last week that resource consent had been granted in 2023.
Early civil works on Mayoral Drive were due to start later this year.
Subject to the completion of Te Waihorotiu Station, Symphony Centre construction was scheduled to begin next year, Monreal told Property Insider.
How many of the 78 apartments are pre-sold was left unanswered.
“We have multiple credible local and international buyers currently undertaking due diligence on a number of residences which are in the final stages of the purchase process, as well as ongoing interest from others,” Monreal said.
“There are also some very strong leads in the commercial space and we are confident that interest in leasing will enable the project to commence.”
The ex-Auckland Regional Council HQ at 21 Pitt St has been marketed for sale.
Beca left Pitt St at the start of this year.
The 17,229sq m, 10-level grey building was developed in 1990 and occupied for many years by Auckland Regional Council (ARC).
It had a debating chamber and civil defence emergency bunker. But local body amalgamation last decade spelt an end to ARC and Beca moved from 132 Vincent St to the much larger block.
The building is owned by private interests: Viewmont Orchards, controlled by Fendalton-based Miles and Peggy Middleton, property records show.
In 2012, the Herald reported Christchurch landlord and earthquake-hit investor Miles Middleton paid $55m for the former Vodafone headquarters.
Middleton took insurance proceeds from Christchurch buildings and bought Beca House.
The former Auckland Police Station went on the market last year.
That is at 67-101 Vincent St.
The site is nearly half a hectare at 4580sq m and is freehold, with an attractive three street frontages.
“This is a strategic and large-scale CBD property with extensive existing buildings including an 11-level tower and provides an unparalleled range of redevelopment options, ensuring appeal to a wide range of buyers,” a Bayleys ad said last October.
Developers, investors, owner-occupiers, special interest groups and hotel or apartment buyers were expected to be keen.
In 2023, Auckland Council’s property arm Eke Panuku said waterfront sites valued at $26.9 million were to be sold.
The 3627sq m Wynyard Quarter site on Jellicoe St was to be quit via an expressions of interest campaign.
The land at 1-17 and 39-47 Jellicoe St has low-use single-level developments leased to restaurant and hospitality businesses.
By last March, no sale had been concluded.
“We have entered into negotiations on a conditional agreement with a preferred development partner for the North Wharf site at Wynyard Quarter however, it is too early to provide any details,” an Eke Panuku spokeswoman said then.
No timeframe was given for further updates.
An Eke Panuku spokeswoman said last week: “No news as yet on North Wharf, but I will be in touch as soon as there’s something to share.”
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.