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Hotel possibility for big Manukau site

Media Release
November 10, 2017

Hotel possibility for big Manukau site

A large, high profile site at the gateway to Manukau’s central business district is up for sale offering the next owner substantial annual holding income while plans are hatched to unlock the property’s significant development potential.

The offering comprises 10,219 sq m of underutilised land at 712-718 Great South Rd at the point where the busy arterial route connects with Redoubt Rd and the on ramp to the northern lanes of the southern motorway (SH1).

The property is up for sale by deadline private treaty, closing 4pm, Tuesday, December 12, unless sold prior to that date. It is being marketed by Jamsheed Sidhwa and Dave Stanley, Bayleys South Auckland.

“This an exceptional trophy location which could host a range of developments to maximise its strategic location such as a new vehicle dealership, hotel and offices, or a combination of these,” says Sidhwa.

“This part of Great South Rd and adjoining Redoubt Rd is one of the main entry and exit points to and from the Manukau CBD which accommodates a mix of large scale office and retail buildings including the giant Westfield Manukau mall which is opposite the property for sale,” says Stanley.

“It’s a very high exposure site with a frontage of approximately 150 metres to Great South Rd as well as massive profile to the motorway on ramp which loops around the property. It’s therefore offers the opportunity for very strong brand profile for its occupants.”

Part of the site is currently occupied by two hospitality tenants: Bronco’s Steak House and the 1981 bar, restaurant and nightclub with leases running until August 2020 and May 2021 respectively.

Stanley says this offers a purchaser a significant initial annual cashflow of $356,000 while they investigate “the highest and best use” of the site.

The property is zoned Business – Mixed Use under the new Auckland Unitary Plan which Stanley says is a zone typically located around centres, such as Manukau’s Metropolitan Centre, and allows for intensive commercial and/or residential development.

“The zoning has no floor to land area ratio restrictions enabling full use to be made of this site’s substantial land area up to a height limit of seven floors plus basement carpark.”

Sidhwa says one obvious use for part of the site would be for the development of a much needed hotel for Manukau.

“Auckland Council’s development arm – Panuku – has an ambitious plan to lead a major transformation of Manukau and particularly its metropolitan centre over the next 20 to 25 years and a quality hotel would contribute significantly to that as well as benefitting from the revitalisation.
“Businesses in the vast commercial and industrial precincts of East Tamaki, Manukau, Wiri and further south host scores of visitors for whom Auckland CBD hotels are not always ideal. Yet their options are very limited with few choices other than the airport hotels, Waipuna Lodge in Mt Wellington and the Quest Hotel and serviced apartments at the Highbrook Business Park in East Tamaki.

“Goodman has cited high occupancy levels at the Quest and a shortage of visitor accommodation in Auckland as the catalyst for a substantial expansion project underway at the Quest in Highbrook. This will double its current 62 bedroom capacity and clearly demonstrates there is a market for hotels outside of central Auckland.”

Sidhwa says adding to the appeal of 712 Great South Rd as a hotel site are its location at the doorstep to one the region’s largest metropolitan centres as well as major visitor attractions such as Rainbow’s End, Vector Wero Whitewater Park and the Vodafone Event Centre. It also provides easy access to both the southern and nearby south western motorways as well as good bus and rail public transport facilities.

“A multi-level hotel would enjoy phenomenal brand profile to passing traffic on SH1,” says Sidhwa. “And last but by no means least, the land could be acquired for a significantly lower per metre cost than the record prices now being paid to secure Auckland CBD hotel sites.”

Sidhwa says preliminary conceptual plans have been drawn up for a mixed use development incorporating a hotel on the part of the site closest to the southern motorway and a serviced apartment complex next to it. Another concept plan shows a hotel with a vehicle dealership with offices above on the balance of the land.

He says Great South Rd is a popular location for new vehicle showroom and supporting servicing facilities with nearby new car dealerships including Toyota, Ford, Mazda, Citroen, Peugeot, Isuzu, Hyundai and Mitsubishi.

“There has been a growing trend internationally to integrate high end car dealerships into a larger commercial developments. Giltrap Group has broken new ground in New Zealand in this area with is development of a new multi-level commercial building in Great North Rd in Grey Lynn.”

The Warren and Mahoney designed 5 Green Star Grey Lynn building has two levels of showroom space for luxury brands Lamborghini, Aston Martin and Bentley, a separate dedicated workshop and technician facilities and car parking and office space on the upper levels, some of which is being leased to other tenants.

“Giltrap has developed this building to the maximum allowable parameters for this site and to the highest level permitted,” says Sidhwa. “Something similar could be done with 712 Great South Rd to maximise the full value of the site. There are lots of add value options that could be pursued.”


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