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.
Featured in Bayleys’ latest Total Property portfolio, they are being offered for sale as a single lot by International Tender closing on Tuesday, December 5, though Alan Haydock and Damien Bullick of Bayleys’ Auckland City & Fringe 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 oﬀ Domain Drive, says Damien Bullick.
“This site has six standalone residential buildings, which oﬀer 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 Bullick.
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 ﬂoor 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 ﬂat and two one-bedroom ﬂats on the ground floor, with level one oﬀering 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, oﬀering 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.