Developers invited to transform Manukau CBD

7:00 PM Friday October 12, 2018 Colin Taylor

The six sites include the big outdoor street level carpark; five-level white Kotuku House, at right; and open carpark at far left. Photo / Supplied

Developers are being invited to submit expressions of interest to develop one or more of six big redevelopment sites in Manukau City’s central business district.

“Five of the sites are being released to the market for the first time,” says Alan McMahon, national director of consulting at Colliers International.

“The six freehold sites have a total land area of about 2.7ha and all have a Metropolitan Centre zoning, allowing for high-rise development and a wide range of permitted uses,” McMahon says.

“Five are used for street-level open car parking and the other site is Kotuku House at 4 Osterley Way – an office building of five levels along with basement car parking.”

Kotuku House, with a net lettable area of 3969sq m on a 910sq m site, will be offered for sale and leaseback to Auckland Council on a four-year initial lease term, with three rights of renewal of one year each.

Expressions of interest in one or more of the sites are to be submitted to Colliers International by 4pm on Thursday November 15, after which parties will be shortlisted.

McMahon says developments that will provide long-term employment opportunities, such as offices; or that will provide affordable housing, are the most desired options, but any use permitted under the zoning will be considered.

He says developers are also being invited to express their interest in assisting Auckland Council to expand its office requirements, which includes 2000sq m of new campus-style office space to bring its total in Manukau Central to around 9000sq m.

“The preferred new development would be a low-rise, campus style office complex with minimum floor plates of 1200sq m.”

Chris Farhi, Colliers’ director of strategic consulting, says the sale and leaseback of Kotuku House will allow Auckland Council to accommodate its staff while an office expansion project is undertaken.

True Commercial - Kotuku House%2c Manukau - cropped in .jpg

Kotuku House at 4 Osterley Way is a five-level office building with basement car parking. Photo / Supplied

“This presents an excellent opportunity for a developer to draw on holding income while new office space is built for Auckland Council elsewhere in the centre,” he says.

“Once council has moved into its new offices, the purchaser will then have the opportunity to redevelop 4 Osterley Way to a higher and better use.”

McMahon says the six sites for redevelopment are located at the heart of the Transform Manukau project area; close to new bus and train stations, tertiary education providers, offices, civic services, numerous retail, entertainment, leisure and cultural premises.

The car park sites include a 2542sq m corner site at 8 Davies Avenue, a 1753sq m site at 9 Osterley Way, and a 5569sq m corner site at 31-33 Manukau Station Rd adjoining the bus station.

Two sites have extensive road frontages with substantial profile for future developments. These are a 6500sq m site with about 140m of frontage at 14 Davies Ave; and a 9713sq m property at 50 Wiri Station Rd with about 230m of motorway frontage to State Highway 20.

McMahon says all six sites are being presented for future development on behalf of Auckland Council’s urban redevelopment agency, Panuku Development Auckland.

“This is an opportunity to help reshape the future of central Manukau which is developing as the heart and soul of the south.

“Panuku is helping to drive this growth through its ‘Transform Manukau’ programme, which aims to ensure Manukau Central reaches its full potential.

“To achieve this, Panuku is making council land available for development, at the same time as investing in public amenity development and upgrades.”

Roger MacDonald, chief executive of Panuku Development Auckland, says the sites have the potential to ‘catalyse’ the regeneration of central Manukau.

“We’re looking for development partners who will share our enthusiasm for the potential of this space. In return interested parties will get a chance to input into the wider planning process, as part of the transformation process.”

Criteria to be considered will be the capabilities of developers, capacity to deliver, track record in successfully delivering similar projects, and corporate and financial structure.

After a competitive dialogue process, Panuku may then choose to enter a detailed request for proposals process to secure development partners for specific sites; or may enter direct negotiations.

The sale of the sites will be subject to development agreements that aim to ensure the properties are: “successfully developed to agreed standards, within agreed timeframes and achieve development outcomes that align with the objectives of the Transform Manukau programme”.

Farhi says Auckland Council’s requirement for new office space is in line with a ‘hub and spoke’ model the council is transitioning to with its corporate office portfolio.

He says Manukau is one of three Auckland centres outside the CBD prioritised for growth through to 2050; Manukau is also one of three council office hubs, with the second being the central city area, and the third serving the west and north.

“Council staff in southern Auckland are currently accommodated in the Manukau Civic Centre, Kotuku House, Papakura Service Centre and Pukekohe Service Centre. A future southern office hub will consolidate these locations to central Manukau.”

Farhi says Panuku is collaborating with a number of agencies to deliver a wider Transform Manukau programme, including the Southern Initiative and tourism and economic body ATEED [Auckland Tourism, Events and Economic Development].

“Panuku is also working closely with central government to achieve coordinated investment in housing, education, health, transport, and public and community facilities.

“The Transform Manukau programme envisions the area as a hub of affordable and sustainable urban living,” Farhi says.

“It aims to build a strong, permanent residential population that lives, learns, plays and works within central Manukau and its surrounding area, growing the population to 10,000 residents.

“Planned upgrades to Hayman Park and Puhinui Stream are designed to make these areas attractive, safe and accessible.

“Development momentum is already building, with several significant property transactions recently, including the sale of the site for 300 new homes close to Manukau Central in Barrowcliffe Place.”

McMahon says more than 1.66 million people now live in Auckland, and this number is set to increase to 2.4m over the next 30 years.

“This growth will require more than 300,000 new dwellings and is expected to lead to the creation of 260,000 new jobs.

“As the anchor for growth in southern Auckland, and the largest civic centre outside of the CBD, Manukau will be a focus for much of this growth.”

The city and surrounding industrial and business areas produce 14 per cent of Auckland’s gross domestic project.

McMahon says Manukau already has a strong civic, administrative, educational and retail centre; excellent motorway connections; and several successful Auckland-wide attractions.

Being close to Auckland International Airport and the Wiri Inland Port also strengthens the city’s role as a key growth node; along with integrated new rail and bus stations; and a planned rapid transport connection to the airport.

McMahon says being close to public transport makes it easier and more attractive for people to live, work and study in this area.

“Manukau is also traditionally cheaper to establish offices or to buy or rent homes, than many other parts of the city, which will be a magnet for residents and businesses.”

He says Manukau is home to two major tertiary providers, AUT (Auckland University of Technology) and MIT (Manukau Institute of Technology) as well as numerous schools. It is also a strong visitor destination with leisure and entertainment facilities that include the Manukau Events Centre, Rainbow’s End and Wero Whitewater Park.