A landholding development opportunity in Otahuhu
The huge Otahuhu site (in red border) is zoned Business-Mixed Use.
A massive freehold property with a significant landholding site occupying two addresses at Otahuhu has come on the market.
Colliers International brokers Greg Goldfinch and Paul Higgins are marketing the 22,825sq m site at 6-8 Fort Richard Rd and 581 Great South Rd in Otahuhu. It is for sale by deadline private treaty due on November 9, 2016, unless sold earlier by negotiation.
The property brings in a total rental income of $972,700 net per annum from its two tenants, Carr & Haslam, one of the oldest transport companies in New Zealand, and a small retail shop.
“The site offers an incredible development opportunity as it is zoned Business-Mixed Use which allows for residential apartments of up to four storeys,” says Goldfinch.
The opportunity includes a significant landholding held in multiple titles. The property comprises 12,270sqm of net lettable area, with Carr & Haslam occupying 12,006sq m at the Fort Richard St address. Both include a 12-month demolition clause in case a future redevelopment is planned.
The buildings at Fort Richard Rd generally provide older, low stud, warehouse/factory space which would lend the property to redevelopment potential.
“The property is a stone’s throw away from the major arterial route Great South Rd and Otahuhu Town Centre, and features easy access to State Highway 1, which is just five minutes away,” says Higgins.
“It is surrounded by residential and commercial buildings and sits beside Otahuhu College’s sports grounds. There are several other primary and secondary schools in the vicinity which afford it incredible versatility and flexibility for future development if a residential development is planned,” Goldfinch adds.
With significant infrastructure being invested by council into the local area, such as the upgrade of local bus and train stations and public transport links, Otahuhu is fast gaining a reputation as a major growth area for Auckland.
“The retail building fronting Great South Rd also offers brick and tile house to the rear. The site sits adjacent to the major Ford Richard Rd site and would allow access off Great South Rd into Fort Richard Rd for any new development,” says Higgins.
Carr & Haslam has a 6-year lease with two 2-year renewals rights, expiring in August 2022. It has been operating out of the property for the last 30 years and is one of New Zealand’s oldest transport companies with more than 150 years of experience in delivering freight.
“This is a great opportunity for an investor not looking for an immediate redevelopment opportunity, with such a prestigious tenant in place. Carr & Haslam is a reputable business with many services which range from transporting goods through to managing stock in their warehouse and a market leader in transporting motor vehicles,” says Higgins.
The Business-Mixed Use zone acts as a transition area between residential and Business-City Centre, Business-Metropolitan Centre and Business-Town Centre zones.
“This zone also applies to areas where there is a need for compatible mix of residential and employment activities,” says Higgins.
The zone provides for residential activity as well as predominantly smaller-scale commercial activity that does not cumulatively affect the function, role and amenity of centres.
“Otahuhu is now synonymous with industry, and is surrounded by premium industrial suburbs such as Favona, Mangere East, Mt Wellington, Penrose and Westfield. It forms an industrial conglomerate zone that spans nearly all of Mangere Inlet,” adds Higgins.