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News Release


Sought after land comes to market



Long term investment with development potential/new-zealand/en-gb/news/916/long-term-investment-with-development-potentialAUCKLANDLong term investment with development potential
Former Fire Station on high profile corner site/new-zealand/en-gb/news/915/former-fire-station-on-high-profile-corner-siteCHRISTCHURCHFormer Fire Station on high profile corner site

As Auckland's supply of greenfield industrial land continues to shrink two sizable Auckland industrial properties have come to the market ideally positioned as brownfield redevelopments. These sites represent rare opportunities to redevelop in already established Auckland industrial precincts.

9 North Candia Road in Swanson which covers an area of 1.7ha and 5 Crosbie Road, Pukekohe which covers a total area of 6,676 sqm are being sold separately by AML Ltd Land Disposal and marketed for sale by Jones Lang LaSalle.

Chris Harding, Commercial Sales and Investments agent for Jones Lang LaSalle, says, "We are increasingly seeing take up of the remaining supply of previously undeveloped industrial sites across Auckland. This is causing land values to grow, meaning that brownfield sites are becoming the feasible redevelopment option in a lot of Auckland's established industrial suburbs. Re-development land such as 9 North Candia Road and 5 Crosbie Road, coming to the market, represents excellent opportunities at a time when land is scarce."

Main industrial areas for example, Penrose, Mt Wellington and Avondale are becoming more and more crowded, with little space to develop so businesses are looking to move outside these main areas to build. Currently, Penrose only has approximately 12 ha of undeveloped space; Mt Wellington only has approximately 3 ha of space and Avondale, 11 ha.

Edward Washer, Industrial broker at Jones Lang LaSalle who is working with Harding on the sales, adds, "Not only is land drying up but it is getting more and more expensive to develop in these main industrial areas. In Penrose, we have seen land values move up 103% in the last 10 years, Mt wellington has seen values move up 80% in the same period and the North Shore has even experienced an increase of 104%. Developers are now being forced to look even further afield which takes them to industrial areas further to the south and west of Auckland.

"With industrial rents remaining stable across the sector, this is giving developers who are in the market the confidence of rental income stability and with both prime and secondary yields compressing the option of moving further out of Auckland is a positive and feasible prospect. We are certainly anticipating a lot of interest in this land, from owner occupiers, developers and private investors.

Bob Officer, General Manager of AML Ltd, concludes, "With the successful merger of Allied Concrete and Holcim's ready mix concrete businesses now completed, this was an opportunity for us to improve our service to all our customers through location change and considerable efficiencies in use of plant and equipment in a very competitive Auckland market."

Taylor continues, "The sale of the North Candia Rd site, we believe is a great opportunity for a local business to secure a large undeveloped parcel suitable for a wide range of uses in that community. Equally, the release of our Pukekohe site, represents a great opportunity to come to market for a similar industry or service business in an area which is surrounded by service and food manufacturing operations."

For sale by tender, closing 4pm on Friday 29th November 2013.

 Media Contact: Jane Wellington

Phone: 09 366 1666