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MANUKAU AND PAPAKURA PROPERTY FOCUS 2007

Auckland International Airport Goes Commercial

Auckland International Airport, with a landholding of 1,500 hectares is the largest landowner in Manukau City and has ambitious plans for major development of both its operational and non aeronautical businesses over the next 20 years.

The Airport Company obtains just over half of its income from non aeronautical businesses, mainly property, retail and car parking. The company understands that, in order to grow this side of its business, well structured expansion of the investment property portfolio is essential. At year end June 2006 Auckland International Airport’s investment property portfolio was valued at $193.5 million and comprised approximately 40 properties

The company has therefore unveiled plans for commercial property development which will benefit from the many advantages which the landholding possesses. It is located within one of the fastest growing industrial precincts in the city, it is well served by roading infrastructure with there being a number of future roading plans in place which will further enhance access, and the presence of the airport itself is extremely attractive to many companies.

 

It is proposed that future development will take place within three distinct commercial zones.

Passenger terminal precinct. This area comprises the terminals, the transport centre, car parking buildings, hotels, shopping, entertainment, services and offices.

Central zone. This zone is bounded by Tom Pearce Drive to the south, George Bolt Memorial Drive to the west and the northern runway end protection areas to the north. It is envisaged that development in this zone will comprise a mix of business park, shopping, recreation and commercial.

Northern Zone. Development will predominately be commercial in nature bounded by the airport boundary to the north, the northern freight/ logistics area to the west and the northern runway end protection areas to the south.

As land zoned for commercial and industrial development within Manukau City becomes increasingly scarce, Auckland International airport has the major advantage of owning large tracts of land with an airport designation zoning which allows a wide range of commercial, industrial and retail uses.

Proximity to the airport, easy access to the state highway system and highly advanced infrastructure will also assist in attracting tenants to either new or expanded retail, business and commercial parks.

Retail Development Planning for a second stage of the airport shopping centre is underway. The new premises will be high-quality, in keeping with the centre shopping plan and all airport properties.

A range of retail space sizes, lease terms and rental review options will be available. Leases are broadly based on standard retail leases, with some minor variation to reflect the special environment of Auckland International Airport.

Commercial Development It is proposed that commercial development should be concentrated within the airport business and commercial parks. The high levels of uptake within the park however by companies such as Excel, Fliways and Wilson Logistics have promoted earlier than expected development within the Northern Development area located to the north of the proposed northern runway. An initial release of 6 hectares has subsequently been followed by a further 12 hectares.

Further sites for office or food outlets are available within the business park where lettings to Subway, McDonalds, Bank of New Zealand and Fonterra have already been concluded.