One of the biggest landholdings to come up for sale on Hamilton’s city boundary in decades is expected to attract keen interest from large-scale developers as the city grapples with an acute shortage of industrial land.
The approximately 62 hectares of freehold land for sale lies right on the city’s western boundary close to the industrial stronghold at Frankton. Spread over three sites, the landholding is zoned for rural-based industry in Waipa District. But real estate experts have flagged its potential for future rezoning as much-needed industrial land within the fast-growing city.
The three adjacent properties at 16A and 16B Wickham Street and 160 Higgins Road, Frankton, are now being marketed for sale together or individually. They will be sold by way of a deadline tender closing on 18 March (unless sold prior), through Bayleys Hamilton.
Salesperson Alex ten Hove said the three sites had land areas of approximately 4.1 hectares, 52 hectares and 6 hectares, respectively. Each had dual access to Higgins Road and Wickham Street.
“Together these three sites represent one of the largest land offerings of its type to go on the market on Hamilton’s city boundary. This easily accessible land sits next to State Highway 1 and the main trunk railway line, with convenient links to the north and south. It offers proximity to the Frankton industrial area and lies within the high-growth ‘Golden Triangle’ linking Hamilton, Auckland and Tauranga,” said Mr ten Hove.
“As such, this land offers rare possibilities for large-scale industrial development, subject to gaining appropriate consents.”
A number of major developments nearby had obtained resource consents for activities including landfill, organic recycling, waste disposal and transport and logistics, Mr ten Hove said.
“The Frankton sites for sale represent a once-in-a-generation opportunity to explore major development possibilities around the likes of transport, logistics and storage, with income from established tenants. There is also a considerable land-banking opportunity for a long-term investor to reap expected capital growth as land values close to the city are driven up by urban expansion.
“The possibilities of these sites, bought together or individually, will attract the attention of owner-occupiers, developers and long-term investors,” said Mr ten Hove.
16A Wickham Street
This approximately 4.1-hectare site comprising two adjoining lots has been developed for industrial use. The land has been largely pre-loaded, metalled and fenced and offers a large area suitable for various storage, transport and logistics operations. It is home to 14 tenants generating an annual income of approximately $295,833 plus GST, with more than 8,000 square metres still available to build, occupy or expand with further tenants.
16B Wickham Street
This block of some 52 hectares lies right on the Hamilton city boundary. The future Southern Links expressway, linking with the Peacocke housing development area, Hamilton Airport and State Highway 3, is designated to run through the property. The block has multiple access points from Higgins Road, Wickham Road and potentially off the new Southern Links highway.
Mr ten Hove said current plans included the development of 16 hectares of this site to create a trucking and logistics yard with a potential leaseback to an established transport logistics operator. “This offers the potential to establish a substantial anchor tenant. A new owner could then choose to explore further development possibilities or land bank the balance of the property for future capital growth.
“With the city’s boundaries constantly expanding and demand increasing for land to accommodate growing infrastructure and industrial requirements, this property offers a large-scale opportunity to fulfil demand,” said Mr ten Hove.
160 Higgins Road
This approximately 6-hectare block at the end of Higgins Road contains a three-bedroom house constructed around the early 1980s, along with stables and shedding. However, its true potential for a new owner lies in future possibilities for large-scale development or as a long-term land banking investment. Access is off Higgins Road and through an easement off Wickham Street.
The three sites for sale are zoned Rural (1A) under the Waipa District Plan, which provides for rural-based industrial uses.
However, Mr ten Hove said similar sites on the edge of growing towns and cities often gave rise to eventual rezoning within expanding urban boundaries.
Hamilton is considered New Zealand’s second-fastest growing centre after Auckland, with a population which has leapt by a third in 15 years to more than 175,000, according to Statistic NZ.
“Despite this rapid growth, the western city boundary beside the Frankton sites has not shifted since the 1960s. Yet this location has been designated for the Southern Links roading project, with commercial land development projected to spread further west,” said Mr ten Hove.
Businesses within a few hundred metres, inside the city boundary, include New Zealand Couriers, Gallagher, Fletcher Easysteel, Bunnings and roading contractor Higgins, along with a number of automotive and construction suppliers.