Proposed zone change makes block one to bank on

The Silverdale area is expected to cater for future demand of light industry. As such, this block is expected to attract a lot of attention. Photo / Supplied

With available industrial land north of Auckland city rapidly diminishing, land bankers are expected to be attracted to a big 20.23ha block of freehold land at Dairy Flat just south of Silverdale, which is being offered for sale by international tender closing on April 29.

"The land offers a prime land banking opportunity in the light of a proposed zone change that would allow for significant development as a light industrial area," says James Chan, director of international sales for Bayleys Auckland, who is marketing the property with Phill Priestley of Bayleys Orewa.

They are marketing the site on behalf of offshore clients who purchased the land in 2004 to hold for future development.

"This sale opens the way for an astute investor to recognise the intrinsic value of this land banking opportunity in an area that is destined for big things," says Chan.

"Much of the future business development north of the Harbour Bridge will, by default, be in the wider Silverdale area. No more industrial land is being created closer to Auckland so it falls to Silverdale to cater for future demand created by a northward population drift.

"Employment opportunities will be stimulated through new business growth in the area and we anticipate that a new industrial development will be modelled along the lines of the quality industrial/business parks in Highbrook in East Tamaki and in the North Harbour Industrial Estate in Albany."

The property is located at 1660 State Highway 17 at Dairy Flat and is near the Snow Planet ski and snowboard centre. The site falls within a strategic "triangle" of land bounded by the State Highway 1 "northern gateway" motorway, the Silverdale motorway intersection, State Highway 17 and the North Shore airfield. The primary motorway access to the site is from the Silverdale interchange.

Chan says strong population growth is forecast for the wider Silverdale and Hibiscus Coast area and there is a significant residential development currently underway in Silverdale with 3000 new dwellings planned.

"With a mixture of low, medium and high-density homes to be built during the next 10 years on more than 300ha of land, the Millwater residential project between Silverdale and Orewa is one of the largest developments in Auckland.

"With an expected population injection of an estimated 10,000 people, this residential subdivision is promising for the future of Dairy Flat as a light industrial and business area," Chan says.

Currently, the Dairy Flat land is zoned General Rural which limits development options under the Rodney District Council's District Plan. However, the recently published background document to the Silverdale West Structure Plan identifies this and other adjoining land as "a proposed mixed-use light industrial area" which would open up a wide range of potential usage.

The intentions of the structure plan will then be converted into changes to the district plan. While there is no indication yet as to when public notification of such a change is likely to occur, the council is committed to the new usage plans, Chan says.

The area has been identified as ideal for what the council calls Group 1 business activities - generally those activities that require a large floor plate including construction, manufacturing, distribution, storage, transport and wholesale trades.

The draft Stage 1 plan highlights that "business land in North Shore City is reaching depletion, with only 2-3 years supply remaining.

It is reasonable to expect that a portion of this growth will be displaced to the Hibiscus Coast being the southernmost part of Rodney District and closest to the North Shore City boundary".

Chan says the Dairy Flat block is a piece of land that has clearly been identified as perfect for industrial growth north of Auckland.

"As such, it represents a significant land banking opportunity for a syndicate or company to acquire and sit on," he says.