Strategic Acquisition for Orewa’s Future—Mayor.
Property Purchase Strategic Acquisition for Orewa’s Future—Mayor.
The Rodney District Council’s purchase of a 3613 square metre property in the heart of Orewa is an outstanding investment and a move away from relying on ratepayers to fund Rodney’s future, says the mayor of Rodney, John Law.
Mr Law, who says he is “sick and tired” of ratepayers having to pay the bulk of capital expenditure, has welcomed the purchase of the Moana Avenue property and the manner in which it was achieved.
He anticipates that over 80% of the $9.1 million purchase price could be funded from rental and lease income. The rest, he says, will be accommodated though the possible sale of council-owned property elsewhere on the Hibiscus Coast.
He describes the property purchase as one the most important strategic acquisition in Orewa’s history. One that he says will be crucial in determining the look and lifestyle of Orewa’s future.
“Here’s a property right in the heart of Orewa. When it came up for sale, the Council had just two choices—either leave it in private hands with no control over how it is used, or bring it back to community ownership now and eventually use it and other property we own in the area to create a town centre we can be proud of.
At $9.1 million, the Rodney District Council is paying a premium. But, as the council’s property manager Mark Johannsen explains, care is needed with cost comparisons. “To look at it in the context of rateable values that are two years old is out of date and obviously not reflective of the current buoyancy of the property market.
“The market value on this property right now is in the vicinity of eight million dollars. Take inflation hedging and rental and leasing income into consideration and you get a very attractive and fiscally responsible purchase, given its strategic location and potential.”
Mr Johannsen says that existing tenants in the building include The Mad Butcher, Paper Plus Outlet Centre, Liquorland and various bakeries and eateries. “Some leases won’t expire for 10 years or more, so we are certainly looking at long-term income and plenty of time in hand to plan for strategic development.
“The larger footprint of this acquisition and adjoining council-owned properties gives council a great deal more flexibility to determine the final nature of the strategic development and what it will provide for the community in terms of a town centre.”
Mr Johannsen says that planning officers within the council are already talking in terms of extensive open spaces, courtyards, recreational facilities and additional parking.
“I am sure that in 20 years time I’ll be able to stand on this site knowing we created something special here for Orewa,” predicts Mayor John Law. “This purchase will make that happen.”