Education precinct’s Golf House worth studying
Golf House is for sale at 10 Kingdon St, Newmarket.
The sale of the Golf House in Newmarket is being promoted as representing a significant redevelopment or investment opportunity within a city fringe area where big education sector projects are proving the catalyst for extensive private sector developments.
John Binning, JLL’s director of capital markets, is offering 10 Kingdon St property for sale on behalf of Kingdon Investments Ltd via expressions of interest closing on Tuesday June 16.
The property is on a high profile corner site on the eastern side of Kingdon Street, a short distance from the major intersection of Khyber Pass Rd and Broadway. The site has frontages to Kingdon St and Short St and is just a five minute walk to the University of Auckland’s new campus at the former Lion Breweries site on Khyber Pass Rd.
The first phase of the new campus covers half of the 5 ha site with a Kingdon St entrance providing student access to Newmarket station and the Broadway retail strip.
The Golf House property is also just a 15 minute walk to the University of Auckland’s Grafton campus opposite Auckland Hospital and adjacent to the Auckland Domain.
The two level 1950s’ building comprises retail and showroom accommodation and has 24 onsite and adjacent car parking spaces. The 1225 sq m building sits on an 1193 sq m commercially zoned site that is contained within two separate certificates of title.
Anchor tenant The Golf House along with Harvey World Travel, sushi outlet Zebrano and a Chinese restaurant; generate annual income of about $303,000.
Binning says the tenants have been strategically placed on month by month leases containing a demolition clause.
“This freestanding two level office building is located firmly within the sphere of influence of both the Newmarket and Grafton campuses of the University of Auckland,” Binning says.
“As the new inner city campus in Newmarket begins to take shape, significant downstream impacts are being felt on surrounding properties. The development is triggering nearby and neighbouring properties to either come to market to transact or redevelop entirely.
“The immediate locality has previously been characterised by a range of commercial service activities with fringe retail. However, with the new university campus underway, over the past 24 months the locality has experienced a significant change in character and tenant type with the emergence of quality retail activity along neighbouring Carlton Gore Rd. This has included the Domain Terraces office development at the intersection of Carlton Gore Rd and Kingdon St along with numerous residential terraced housing and apartment developments in the surrounding area.”
Binning says the 1193 sq m site at 10 Kingdon St provides an excellent redevelopment or investment opportunity.
“Investors could hold the building as an investment property with tenants able to cater to the surrounding office, residential and university occupants.. Or the site could be redeveloped to take advantage of a current gap in the supply pipeline foraccommodation in Newmarket with demand significantly reflecting the increase in international students coming to study in Auckland.
“The strong and growing demand for accommodation primarily from overseas students has attracted new entrants into the sector and this site presents an opportunity for developers or investors to gain a significant foothold in Newmarket at a time when Auckland is emerging as a core market for large international investors,” Binning says.
“There is a comprehensive public transport network of bus and rail routes servicing the area, while the nearby railway station and railway line running adjacent to the northern boundary greatly enhance the attractiveness of the site.”
The location is on the fringe of the Auckland CBD with quick access to the State Highway One southern motorway and State Highway 16 north western motorway.
Binning says Statistics New Zealand forecasts a 41.1 per cent increase in the growth of the population for the Newmarket area and environs between 2011 and 2026.
“This prediction was released prior to the development of the University of Auckland’s new campus so it is likely that population will exceed even these optimistic growth forecasts,” he says.
“Research undertaken by JLL indicates that the Newmarket’s Westfield’s 277 development and the University of Auckland project site, combined with the implementation of the Proposed Auckland Unitary Plan, will tilt development towards new urbanisation that will significantly lift overall property values in the area.”
John Binning of JLL.