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Big chunk of Parnell for sale
Big chunk of Parnell for sale
A significant Parnell landholding of over one and a quarter hectares is for sale offering the opportunity for an intensive residential or retirement village development adjoining the Auckland Domain.
The offering totaling 12,530 sq m of land comprises four separate properties at 1 Domain Drive and 491, 501 & 509 Parnell Rd, currently generating total annual holding income of approximately $770,000.
Owned by one vendor, they are being offered for sale as a single lot by International Tender closing on Tuesday, December 5, unless sold prior, though Alan Haydock and Damien Bullick of Bayleys’ Auckland City & Fringe division and James Lee and Brett Whalley of CBRE’s Metropolitan Investments division.
“This is one of the largest central Auckland land holdings to come up for sale in recent years,” says Haydock. “With favourable zonings under the new Auckland Unitary Plan, there is excellent potential for large-scale, intensive development.”
“There’s already been considerable interest from some substantial players in the retirement sector because of the sheer size of the land available and the strength of the location near the Domain, in sought after Parnell.
“However, for the same reasons it would also suit a substantial residential development with the fact that it’s in the zone for Auckland Boys and Epsom Girls Grammar schools adding to its appeal in this regard. Any future development could also possibly incorporate some student residential accommodation which is one of the main current uses of the property.”
The largest component of the offering is 1 Domain Drive which comprises 10,504 sq m of freehold land adjoining Auckland Domain with road access points from Domain Drive and Claybrook Road as well as resource consent in place for an additional entry point o Domain Drive, says James Lee.
“This site has six standalone residential buildings, which oer a combined 91 residential rooms which currently provide student accommodation. There is a lease over this entire site to The University of Auckland, generating close to $530,000 of rental income plus GST per annum. The current tenancy term expires in December 2019, however, there is a clause in place which allows the landlord to terminate the lease by giving the tenant 12 months’ written notice should the site be required for redevelopment.”
The land is zoned Residential – Terrace Housing and Apartment Buildings. “This is the most intensive residential zoning provided under the unitary plan and in the case of this property allows for buildings up to 19.5 metres over the majority of the site, with up to 50 per cent site coverage,” says Lee.
Potential uses under this zoning, in addition to terrace housing and apartments, include care centres, boarding houses, visitor accommodation and a limited amount of office and retail space.
The three properties located on Parnell Road are zoned Business – Mixed Use which allows for a wide range of residential and/or business uses with a height limit in this location of 18 metres, including a two metre roof allowance.
“The mixed use zoning is one of the most desirable in the city fringe as there is no maximum allowable oor area ratio or restrictions on site coverage - which provides quite a bit of flexibility from a development perspective,” Haydock says.
The Parnell Rd
properties comprise:
• 509 Parnell Rd: a 728 sq m land
holding with a two- level character residential house,
constructed in the early 1900s. It has been split into four
residential units: one two-bedroom at and two one-bedroom
ats on the ground floor, with level one oering short
term residential accommodation with four bedrooms. The
property returns income of approximately $110,000 per
annum.
• 501 Parnell Road: an 868 sq m site with a
single-level character building believed to have been
constructed in the 1920’s as a residential dwelling. The
property has been converted for commercial use and is
currently leased to financial services firm NZWM Limited,
trading as Wealth Mentor, on a three- year term from April
2017. It is returning annual rental income of $77,250 plus
GST.
• 491 Parnell Road: a residential house
constructed approximately 21 years ago which sits on a cross
lease title, oering a half share of a land area of 860 sq
m The property is leased on a periodic residential tenancy
basis and is returning approximately $60,000 per annum.
Haydock says the intensive, flexible zonings across all
four sites are a key feature of the offering, enabling high
density residential and apartment buildings to be built as
of right.
“The property will also provide the next owner
with considerable holding income while they put plans in
place and obtain the necessary consents for work to begin.
Demolition clauses plus the short term nature of the
residential tenancies provides additional flexibility in
terms of when a purchaser starts any development work.
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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