From carpark to residential

3:35 PM Friday November 17, 2017 True Commercial

The land in central Otahuhu - indicated by a red border - has long been used to store cars. Photo / Supplied

A massive industrial land holding in central Otahuhu is being pitched as a large-scale residential redevelopment opportunity.

The 2.2825ha land holding — on the corner of 4-18 Fort Richard Rd and 581 Great South Rd — is zoned Business Mixed Use. It generates net annual rental income of $1,129,141.

Complete with its own former motor assembly plant, the property is up for tender through Mark Pittaway, of Bayleys Auckland. Tenders close on December 11 (unless sold earlier), and it features in Bayleys’ Total Property portfolio.

Pittaway says the land holding would be ideal for residential development, being positioned between an expansive public reserve area — the Sturges Park sports fields — and Otahuhu’s town centre.

Otahuhu suits such development, having become a major public transport hub, with an award-winning train station and excellent bus integration.

“Under the unitary plan, the mixed use zone allows for residential development as high as 18m and an initial evaluation indicates more than 500 residential units of up to five levels could be accommodated on the site. This would significantly ease Auckland’s housing shortfall.”

The site's zoning allows for broad options, including residential dwellings, residential care including retirement villages, visitor accommodation, offices, retail, educational facilities as well as light industrial premises. Holding income

Pittaway says a resource consent will be required to ensure plans are in keeping with the objectives of the zoning and unitary plan.

However, he points out that until development goes ahead, the property would generate substantial holding income from its long-standing tenant.

It comprises 22,132sq m of land in nine titles and 12,066sq m of predominantly industrial buildings, originally developed in the late 1950s as a car assembly plant owed by Motor Holdings. The plant closed after tariff protection was removed in the 1980s and distributors found it cheaper to import fully assembled cars.

Carr & Haslam Ltd has occupied 4-18 Fort Richard Rd for more than 30 years. Specialising in vehicle transportation and storage, this substantial national logistics company has used the site for storing large numbers of vehicles prior to distribution to dealerships. Five buildings

There are five free-standing buildings, the largest being the former assembly plant situated on the eastern boundary.

The site is sealed and has an electrified security fence, with access from two entrances off Fort Richard Rd. It encompasses a smaller adjoining land holding of 693 sq m at 581 Great South Rd, which would provide additional site access off this main arterial road for any development project, says Pittaway.

It has a 204sq m retail building, which accommodates The Hangi Store.

Carr & Haslam’s lease — which provides the bulk of the rental income — expires in August 2018, with two further two-year rights of renewal which, if exercised, would take final termination through to 2022.

The lease contains a 12-month demolition clause, which would enable it be terminated by giving the tenant a year’s notice at any time prior to that.

The Hangi Store lease expires in August 2018, with no rights of renewal.