Ride the Auckland development wave at 5 Clinker Place
Ride the Auckland development wave at 5 Clinker Place
13 December 2014
Auckland, 13 December 2014 - A rare and lucrative mixed-use development opportunity on a significant piece of land in fast-growing New Lynn has come on the market for sale at 5 Clinker Place, at a time when Auckland is lacking large, vacant and ready-to-develop spaces.
Marketed in New Zealand and internationally by sole agents Brent McGregor and Warren Hutt of CBRE New Zealand on behalf of vendor Vuksich and Borich Limited, the 5.68 hectares of land are for sale by way of On Market Deadline Private Treaty, with a closing date of 4pm on 26 February 2015.
McGregor, Senior Managing Director of CBRE New Zealand, says the land presents a significant opportunity to invest and deliver a major urban renewal project in an area of Auckland that is attracting considerable interest, funding and priority.
“You won’t find a piece of developable land of this size in such a strategic location in Auckland for years to come. It’s not just the physical size of 5 Clinker Place that makes it so attractive - it’s the location and the priority given to the area by the private local and central government sectors too.
“As one of the country’s first Transit Oriented Developments (T.O.D) based upon intensification and renewal, New Lynn is rapidly attracting retailers, commercial, residential and hospitality providers who are lining up to get into the area.”
McGregor says that the site’s scale and zoning provisions offer considerable flexibility and potential for the developer who buys it.
“The site is earmarked for quality medium to high density mixed use development, and offers a range of options for investment. There is scope for a high quality master planned, affordable residential and mixed use project which has caught the attention of a range of developers, investors and construction firms who are eager to secure a project of significant size and value.
“Offices, shops, hospitality offerings and entertainment will be underpinned by residential development and a public transport network with considerable public and private investment involved. Whilst there is capacity for 9,500sq m of non-residential floor area on the site under the operative zoning, to cater for the hundreds of possible homes that will be created for the development, the proposed Auckland Unitary Plan proposes an increase in the non-residential activities through the Metropolitan Zone across part of the site.
“Developers keen to spread their portfolio across different typologies and cover commercial, retail and residential will be pleased to see how perfectly suited the Clinker Place site is for a number of different developments typologies. Demand for an opportunity of Clinker Place’s scale is high, and supply is incredibly low, so the market fundamentals are in place.”
Warren Hutt, Senior Director Capital Markets for CBRE, says the 5.6825 hectare site is vacant and ready to be developed for commercial and residential uses.
“Developers have had very little in the way of large land options this close to town for some time now. With a blend of commercial, retail and residential properties on site, Clinker Place is set to be a best practice example of medium and high density modern living and work.”
He says 5 Clinker Place adjoins an area of land that is proposed as the new centrepiece, Crown Lynn Park.
“The shared green space in Crown Lynn Park will provide the local workforce and residents with a common area to enjoy. A shift to more compact living as Auckland’s housing needs grow exponentially has also seen a move to more shared amenity such as the park.
“Increasingly, people are happy to opt for smaller, warmer, cheaper to run homes, with shops, cafes, work opportunities and entertainment all located nearby. Clinker Place will set the standard for ‘smart growth’ in New Zealand, which is based around smaller homes and better use of public transport.”
Hutt says Auckland Council has considerable motivation to ensure the Clinker Place development is successful, and with L6 zoning providing for multi-level medium and high density mixed use and residential development, all the desired elements are in place to provide a foundation for a hugely popular and well-regarded urban renewal project.
“Central Government is also keen to get this project moving. There has been a pipeline of work for a while but now everyone just wants to see the project delivered.”
The Clinker Place site has three road frontages; Margan Avenue Reserve, Memorial Drive (proposed) and access from Astley Avenue.
McGregor says 5 Clinker Place is one of the most strategically located urban redevelopment positions in the Auckland region.
“The site is located just 200 metres from the New Lynn Train station, the New Lynn Commercial Centre and the Lynn Mall Shopping Centre.
“The entire site is no more than a 5 minute walk from the new Transport Interchange and an 18 minute journey to the CBD. After the trains are electrified and the CBD Rail Link is complete, a trip to or from the CBD would reduce to an 11 minute connection.”
McGregor notes that New Lynn is one of eight prioritised Metropolitan Centres in Auckland, and as such is receiving a high level of investment and focus.
“As the southern gateway to West Auckland and the Waitakere Ranges, New Lynn is a vibrant commercial area that attracts people from throughout the wider region.
“Unlike many other major mixed used development areas around the wider Auckland region, New Lynn is considered a prime city fringe location which adds to the appeal of the site.
“Developments at Hobsonville Point and Albany have demonstrated how well large scale commercial and residential communities can be created. Clinker Place demonstrates the evolution of mixed use development.
“There’s an existing town centre, a sophisticated public transport network that has been heavily invested in by a number of motivated parties, and a mandate to build more commercial and residential spaces - and fast.”
Hutt adds that strong development and investment activity surrounds the land at 5 Clinker Place and wider New Lynn area.
“Kiwi Income Property Trust recently announced it will be investing $36 million in the popular LynnMall shopping centre, upgrading and expanding the entire facility including Reading Cinemas. Driven by shopper demand and positive growth in the centre’s catchment area, the trust’s investment is indicative of the level of interest and priority the property sector is giving to New Lynn.
“The nearby Merchant Quarter apartment development has also sold down extremely well since 2013, providing a welcome boost of affordable homes to the New Lynn area. This provides further evidence of the demand for residential and non-residential development in West Auckland.”
Hutt says, “It’s fair to say New Lynn has captured the hearts, imagination and investment of lots of people. There is a huge interest in making sure that this project is a success, which provides a level of support and confidence we so often see lacking in commercial developments.”
“Due to the size and significant value of 5 Clinker Place, we are presenting the sale internationally and as such we have already received a positive response from the market. I’d encourage interested parties to get in touch soon because an opportunity of this nature, scale and value won’t come on the market any time soon.”
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.