Triple development opportunity zoned at Twin Oaks, Rotorua
Triple development opportunity zoned at Twin Oaks, Rotorua
5 March 2016
Auckland, 5 March 2016 - A large landholding in the exclusive Rotorua suburb of Matipo Heights, with panoramic views over the lake and the potential to develop a retirement village, aged care facility, residential subdivision and a number of lifestyle lots has come up for sale for the first time in decades at 34 Matipo Avenue, Rotorua.
Known as Twin Oaks, the 19.52 hectare property has been in the freehold ownership of the Rodwell family for more than 30 years.
Marketed exclusively by sole agent John Bedford of CBRE, the property is for sale by way of an Expressions of Interest campaign, with a closing date of 4pm Wednesday 13 April 2016 unless sold prior.
John Bedford, Senior Director Capital Markets at CBRE, says that the property represents a development opportunity which will cater for a cross section of residential and or retirement village developers in search of zoned greenfields land with scale and diversity.
“At a time when New Zealand’s population is aging rapidly and Auckland property prices are tempting many people to seek lifestyles in places that include Rotorua, this large landholding offers a range of flexible development opportunities, with two distinct zonings and consent to establish a retirement village on approximately 5 hectares of the Rural 2-zoned land.”
Approximately four kilometres to the south west of Rotorua’s CBD, Twin Oaks is a 19.52 hectare single lot that occupies an elevated area on the fringe of the Rotorua residential boundary, in Matipo Heights, an emerging suburb of Rotorua that is the development focus of the Rotorua District Council.
“The elevated setting offers expansive 360 degree views of the Rotorua district, Lake Rotorua and beyond,” says Bedford. “Unobstructed views are also enjoyed to the south and west of the property.”
The Rotorua District Council, in consultation with the family, initiated a process to rezone the land to cater for the pressing need for developable retirement and residential land. The family has worked with the council and neighbours to achieve an agreed position on the zoning of 34 Matipo Avenue that would result in a low-intensity development of the property.
Bedford says that on 24 September 2015 The Twin Oaks Development Plan was adopted into the District Plan under a Consent Order imposed by the Environment Court.
“That was a game changer for the property, immediately transforming it from a rural block into a viable development opportunity, adding real benefit and value to prospective purchasers by removing a major hurdle to development.
“The site carries two zonings under the Proposed Rotorua District Plan (PRDP): Residential 1 and Rural 2, which provide for a mix of development. The Twin Oaks Development Plan provides for a Licence to Occupy 120 unit retirement village together with a 30 bed aged care facility, indoor and outdoor recreation areas on park-like grounds.”
Bedford says that the concept plan accommodates a retirement village that might utilise up to 5 hectares, while 2.258 hectares is zoned for residential purposes leaving 11.78 hectares available for large-lot rural residential development.
The plan for the retirement facility provides for residential units, village facilities and a hospital to service the Twin Oaks and other retirement villages.
“A unique element of the Twin Oaks offering is the selection of development or land banking opportunities available to purchasers,” says Bedford.
“The property is presently in one freehold title, which would suit a single purchaser most effectively, allowing a new owner to maintain ultimate control by purchasing the entire block and developing it over time. However, the three distinctive zoned areas could be purchased individually.”
With a population of 65,208 at the 2013 Census, Rotorua is the 10th largest population centre in New Zealand.
CBRE’s Retirement Housing and Healthcare Valuations business has extensively researched the Rotorua retirement village market, says Bedford.
“Our research demonstrates that present demand for retirement living in Rotorua is high, with an ageing population, near 100% current occupancy and no known village developments on the horizon. Furthermore, all of the existing facilities are on the town level, without the great views that Twin Oaks provides.
“New Zealand is set to experience a major demographic shift, which will result in a high representation of elderly population in comparison to historical trends. This forecast change is well documented. While improvements in medicine and the quality of life have provided a platform for people to survive to an older age, another major driver has been low fertility and birth rates.”
This means, he says that over time an ageing population will result in increasing demand for a retirement village lifestyle.
“At a national level, demand is anticipated to grossly exceed current supply as the baby boomers born between 1946 and the early 1960s reach retirement age. Based on current levels in the order of 6% (75+), this will increase the percentage of the New Zealand population aged over 75 to over 14% by 2048. With an average entry age into a retirement village of 73 years, this would suggest peak demand is likely to occur between 2020 and 2035.
“When you combine this information with the 30 year population projections for Rotorua to 2043, which indicate a 179% forecast increase for the population aged 75 and over, Twin Oaks Retirement Village offers significant potential to become a highly successful development.”
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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.