WELCOME to our FIRST EDITION - Auckland Transport Update Airport Expansion Plan - Airport Connect
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THE VOICE OF BUSINESS ISSUE 1 | JULY 2019 WELCOME to our FIRST EDITION Auckland Transport Update Airport Expansion Plan
ABOUT CONTENTS
US
Would you believe this; an Airport Connect
Property Update PAGE 5
magazine. Four years ago this was not a thought;
today a reality. Auckland Transport Update PAGE 6-7
The Airport Community is growing rapidly, in
fact at an unbelievable rate. This area is truly a
Greenfields area. Other developing areas talk
Airport Expansion Plan PAGE 8-9
about their opportunities for new businesses
however there are already competing businesses
exiting. Here at the Airport we are truly an Airport Precinct Statistics PAGE 10
opportunity area. There are in the vicinity of
17000 people who work full time; there is no
unemployment; there are shops, manufacturers, Second Nature Charitable Trust PAGE 11
warehouses, outlet shops, tourist attractions,
BANK OF
Cafés, Accommodation and yet the opportunities
exist. There are no Accountants, Solicitors, only
three banks. The Airport Precinct is short of many Blomfield - Cartoonist / Illustrator PAGE 12
business types.
BUSINESSES To those people who were at the Auckland
International Airport Company presentation with
CEO Adrian Littlewood a couple of weeks back
EVENTS
POWERING
heard of the massive work project that is being
undertaken now. While this is happening, consider
the works planned by AT around the Puhinui Road
area at the same time. About to happen is the 25th July 23rd Aug
AHEAD
residential housing development approximately
480 houses, 40 going to Iwi, 100 allocated to Kiwi
Auckland Airport Tour Mayor Phil Goff
Build and the rest private that will add hundreds Ray Emery Drive, Auckland Venue TBA
more families.
Bank of New Zealand The Airport Precinct is an exciting business
Become an
environment. You can feel the buzz.
To all the Sponsors and individuals who have taken
a leap of faith in supporting Airport Connect, I
Airport Connect
thank you. You have made a great contribution in
shaping an organisation to speak on your behalf
in business matters that affect your environment.
Member today
We get that finances are different in every business. Airport Connect has continued to grow and thrive
with your support and enthusiasm.
That’s why you can tailor BNZ Asset Finance how you
need it, to help you grow your business. Remember this, Airport Connect is about you. and connect with like minded
To ensure the continued success of Airport
Connect, we need your support as financial people in the Airport Visit our website on
You can get up to 100% funding for new or used equipment, members (see application on this page) and your business precinct aklairportconnect.com
presence at the meetings. Whilst talking about
use your asset as security, choose a fixed or floating rate, meetings, remember, Airport Connect holds
repay over one to five years, and vary your repayments to meetings when there is something of importance, For membership inquires, please contact, Graeme Houston
interest or relevance to you. Meetings are not held on 021 955 338 or email main.event@xtra.co.nz
suit your cash flow. for the sake of having a meeting. We are too busy
for that. The aim is to hold meetings at 10-week
intervals if they meet the above criteria.
TALK TO US TODAY ON 0800 236 004 Until our next meeting, thank you for your
EDITORIALS /ADVERTISING DESIGN & PRINT PARTNER
support. Brett MacLeod LCD Multimedia
Director 09 833 4317
Graeme Houston 021 677 786 print@lcdmultimedia.co.nz
Our lending criteria, terms and fees apply. Minimum loan amount $5,000. Asset Finance loan is to be secured by the asset or other current business assets if additional security is required. CEO and Founder of Airport Connect bmacleod@xtra.co.nz
The GST component must be repaid within the first three months of the loan term. You will be required to insure the asset. Insurance covers are subject to the terms and conditions and
exclusions contained in the relevant policy document and schedule.
Industrial Property Remains in Demand Vacancy Rates Reach New Lows
Conditions within Auckland’s industrial property sector tightened further Average vacancy rates across Auckland’s largest industrial
over 2018 with vacancy rates reaching a new low of just 1.7%. The region’s plunged to a new low in early 2019 according to the results
Industrial Property Vacancies
strongly performing economy, driven by booming population growth, has Bayleys Research industrial vacancy survey.
seen business expansion and job creation generating increased demand for
The overall vacancy rate fell to 1.7% from the already histori
industrial workspace. This demand has, to date, run ahead of new supply
3.3% recorded in 2018.
Low While Sales Are High
which has elicited a significant response from the development sector.
While overall vacancy has sat at below 4% since 2014 this i
The industrial property investment sector continues to perform strongly with
occasion on which none of the precincts surveyed have rec
competition for assets, as and when they are brought to market, remaining
of over 5%. As at the date of the 2018 survey the vacancy ra
at high levels as investors seek higher yielding assets in a low interest rate
recorded as 7.6% while in East Tamaki the figure stood at 5
environment which looks set to remain in play for an extended period of time
survey however, the highest vacancy rate recorded across
yet. Further analysis
(Wiri conducted
and Mount by MSCI
shows property located within
was just 2.6% Wellington).
Auckland Industrial Vacancy Rate by Precinct Manukau and thelargest
airport corridor to
AUCKLAND AIRPORT’S AUCKLAND AIRPORT’S have outperformed the wider market
The North Shore’s industrial precinct, the Albany Ba
Results are for the period 1 April 2018 1 April
Resultsseen
are vacancy
for the period with2018
to 31 March 2019 for Bayleys Auckland 2017 2018 2019 generating
to 31 March 2019 fortotal returnsAuckland
Bayleys of 15.6% in
rates tighten the overall figure falling from
INDUSTRIAL LEADERS
Airport industrial team
INDUSTRIAL LEADERS
2018
Airporttime including
industrial team a capital return ofyear.
9 perDemand from bot
8% of the 2018 survey to 1.7% this
7% cent.occupiers has held vacancy rates in the precinct at b
owner
Vacant development land within a
2014.
6%
Bayleys Auckland Industrial is New Zealand’s largest industrial Bayleys Auckland Industrial is New Zealand’s largest industrial majority ofatthe region’s pressure
established
Vacancy Rate
Further north Silverdale on supply has been ma
industrial precincts is an increasingly
5%
team with over 35 sales and leasing specialists who have built team with over 35 sales and leasing specialists who have built
an enviable reputation for delivering the best results for our rare commodity. The shortage of land
81,715
new space within the precinct’s established industrial area
an enviable reputation for delivering the best results for our
81,715
4%
clients - our results speak for themselves. clients - our results3%speak for themselves. has driven upward pressure on values.
proving popular with occupiers. By way of example the Trad
An example
Foundry Road now of this
hasisjust
a recent 5104sqm
two units vacant with the other
industrial land sale inTWL.
East Tamaki for
sqm GFA transacted
2%
sqm GFA transacted
of occupiers including
LEASED SOLD $4,185,280 at $821 per sqm by Bayleys.
LEASED 1% SOLD At Highgate a multi Unit project on Emirali Road developed
0% Therapid
seen latest release
take up byfrom
bothStatistics New
tenants and owner occupiers.
Airport East Penrose Wiri Mt Well Rosebank Albany Total
Tamaki Basin Zealand shows that construction costs
Precinct are still on the rise. In the year to
Artists impression Artists impression
December 2018 construction costs
SOURCE: BAYLEYS RESEARCH
Artists impression Artists impression
17 Landing Drive 586 Oruarangi Road 17 Landing Drive The region’s strongly performing
increased by a further 4.2% nationally.
586 Oruarangi economy Road has seen business expansion
The latest annual rise was in line with
$163
and job creation generating increased demand for industrial workspace,
$163
those over recent years. At 4.2%, annual
Case Studies
LEASED SOLD LEASED with demand outstrippingSOLD supply.
growth is running at more than twice
million million
the rate of inflation (1.9% year to Dec
property sold or leased Bayleys Research’s latest survey shows the average vacancy across
2018).
Auckland’s industrial precincts plunged to a new low of just 1.7%, which property sold or leased
is almost half the historically low rate of 3.3% recorded in early 2018. The
Such tight market conditions have also
lowest vacancy at 0.9% was recorded in the Auckland airport precinct
Boundary lines are indicative only
Boundary lines are indicative only
seen overall rises in net rental across
8 Amelia Earhart Drive 12-16 Brigade Road 8 Amelia Earhart where
Drive Bayleys recently concluded
12-16 Brigade three
Road hefty sales totalling $37 million.
Address Address both existing and new properties. With
rents comprising a range of different
LEASED SOLD The highest price achieved was $17,386,960 for a 1.7ha site at 9
LEASED SOLD elements such as yard and carparks,
Richard Pearse Drive, at a 5.1% yield on a new 10-year lease to
a blended rate is increasingly being
Apollo Motorhomes. 500 meters from it, Bayleys also sold a 4600sqm
INDUSTRIAL AGENCY TEAM adopted AGENCY
INDUSTRIAL for comparison TEAM purposes.
OF THE YEAR NZ 2018 temperature controlled warehouse and office on a 1ha site at 12-16
Brigade Road for $13.2 million at a 6.08% yield, with My Food Bag as OF THE YEAR NZ 2018
Boundary lines are indicative only Artist impression As awarded by the Royal Institute of
Chartered Surveyors (RICS) at the 2018
Tenant.
Boundary lines are indicative only Artist impression
Chartered
What does the
As awarded by the Royal Institute of
Surveyors
Road(RICS) at the 2018
research and
8Address
Airpark Drive 9 Richard Pearse Drive 8Address
Airpark Drive 9 Richard Pearse Drive
Sales Awards.
Brigade Road, Airport Corridor Bowden Mount Wellington
Sales Awards.
While most commercial property sectors have
Saleperformed well over the
past few years, the industrial sector has provided the highest returns over evidence indicate?
Sale Date April 2019 price: $13,200,000 Sales Date: Jan 2019 Sale Price: $5,100,0
an extended period of time.
Method: Deadline Private Treaty Yield: 6.08% Sale Method: Negotiation Yield: 5.6%
Prevailing conditions translate to
According to statistics released by MSCI which revalues a multi-billion Owner-Occupiers and Tenants having
For the best results, work with the best real estate agency. For the best results, work with the best real estate agency.
dollar portfolio of New Zealand commercial and industrial property on a limited choices when it comes to
quarterly basis, industrial property nationally returned 13.2% in the year relocation. This underscores the
Jamsheed Sidhwa Nick Bayley Tom Davison Scott Campbell Jamsheed Sidhwa to September 2018. This
Nickcontinues
Bayley a run of double digit Tom returns
Davison which need forCampbell
Scott businesses to plan property
021 554 657 021 174 2440 021 880 733 021 414 107 021 554 657 began in March of 2012.
021 The latest figures include a 021
174 2440 capital880 return
733 of just strategies with specialist industrial
021 414 107
jamsheed.sidhwa@bayleys.co.nz nick.bayley@bayleys.co.nz tom.davison@bayleys.co.nz scott.campbell@bayleys.co.nz over 6.5% reflecting nick.bayley@bayleys.co.nz
jamsheed.sidhwa@bayleys.co.nz ongoing yield compression and tom.davison@bayleys.co.nz
rental increases. brokers, far ahead of lease expiries or
scott.campbell@bayleys.co.nz
intended property changes.
bayleys.co.nz bayleys.co.nz
BAYLEYS REAL ESTATE LTD, MANUKAU, LICENSED UNDER THE REA ACT 2008 BAYLEYS REAL ESTATE LTD, MANUKAU, LICENSED UNDER THE REA ACT 2008
5
Airport to Botany
Rapid Transit will deliver
Early deliverables to be
a fast, frequent, reliable and affordable
completed by 2021
Southwest
rapid transit system between the
airport, Manukau and Botany. It will
significantly improve transport choice, The first stage of the Southwest Gateway programme involves
upgrading Puhinui Station to provide a quality transport interchange
reliability, and journey times as well as
with bus and rail connections.
Gateway
provide an important public transport
link to the rail network at an upgraded The upgrade will be accompanied by:
Puhinui Station. • priority lanes between the airport, Puhinui and Manukau
• improved walking and cycling facilities along SH20B,
Puhinui Road, Lambie Drive.
• new and upgraded intersections, localised road widening and
resurfacing, drainage and stormwater treatment.
The Southwest Gateway is a programme of three key
Puhinui Station Interchange
transport projects to create a well-connected, efficient 20Connect will improve
transport system that provides choice and reliability for journey reliability along State Highway
how people and freight travel around the southwest and 20, 20A and 20B and provide more
choice when travelling around
southeast Auckland, including to and from the airport.
southwest Auckland, including to and
from the airport. It will provide priority
The programme is being delivered by the NZ Transport lanes for public transport, improve
Agency, Auckland Transport and Auckland Airport. access and safety, walking and cycling
facilities.
It consists of three projects:
• Airport to Botany Rapid Transit
• 20Connect
Y • Auckland Airport precinct improvements Auckland
Airport precinct
improvements
ONEHUNGA
The airport area will undergo a
dramatic transformation over the next
BOTANY
reate a
e and freight
ŌTĀHUHU 30 years with a combined international
airport.
king together to and domestic terminal, new airfield
d airport growth. infrastructure, second runway and
AD
AD
RO
1. AIRPORT TO BOTANY
E RO
EY
SS
RAPID TRANSIT
BRID
MA
king and cycling
upgraded departures and arrivals areas
KIRK
2. 20CONNECT
e access to
I DRIVE
MĀNGERE
as well as upgrades to public transport,
RANG
provide health,
TE IRI
roading and walking infrastructure within
Benefits
3. AUCKLAND AIRPORT
PRECINCT IMPROVEMENTS
Auckland Transport is upgrading Puhinui Station to become a major bus/train
em between PUHINUI
the airport precinct.
oice, reliability, MANUKAU interchange similar in size and function to Ōtāhuhu, Panmure and Manukau
s provide an Stations, with a 10-minute branded bus service to the airport. • frequent bus and rail connections
Station. AUCKLAND
AIRPORT to make easy journeys to the
RO
This will improve travel to and from the airport, and its surrounding areas by airport, city centre and other
SCO
MM
For more information on the projects
ON
areas
RO
providing more reliable and timely travel choices as well as connecting people to
AD
A and 20B and please visit the below websites:
g to and from
wider Auckland through southern and eastern line train services. • improved safety with new lighting,
ss and safety,
TIMELINE • Southwest Gateway Programme HOP ticket gateline and CCTV
TIMELINE
www.nzta.govt.nz/southwest-gateway system
EARLY 2019 LATE 2019 2020 / 2021 The interchange will build on the existing train station, linking the rail platform
• increased shelter for passengers
EARLY IMPROVEMENTS
Detailed design and Construction starts on Early improvements • Airport to Botany Rapid Transit with a new bus, as well as a ‘kiss and ride’ area, connecting the new station
go a dramatic obtain resource consents early improvements: complete
www.at.govt.nz/AtoB moving between bus and train
domestic 2018 • Puhinui Station upgrade
building to a new elevated concourse. services, and improved facilities
ures and Develop business case and gather
• Priority lanes
• 20Connect
infrastructure
public feedback on options
www.nzta.govt.nz/20Connect and access for cyclists and
LONG TERM IMPROVEMENTS MID 2019 – 2020 2021 » • Auckland Airport precinct improvements This project is partly funded by the Regional Fuel Tax (RFT). pedestrians
Develop preferred option and Route protection and staged https://corporate.aucklandairport.co.nz/ • clear, safe separation of buses,
trains, pedestrians, cyclists and
obtain resource consents construction longer-term elements
nreliable The first stage of construction is expected to begin in October 2019, and is
Customer Insight Research 2018 planned to be completed by early 2021. other vehicles.
6 NOVEMBER 2018 1
7
1 Northern stands & taxiways
Other
2 Northern runway
3 New cargo terminal
4 New international arrivals
Key Facts
5 New domestic jet facility
Airfield
6 Domestic terminal rejuvenation
7 Pick-up / drop-off and
Multi-storey carpark 1
8 Northern road network One million cubic metres of earth will be
moved (or the equivalent of 760 Olympic-
expansion
sized swimming pools)
260,000 ton
of imported aggregate will used for
kicks off
pavement construction
7,000 metres
of new storm water drainage system
next phase
will be installed
2,200 metres
of new fuel reticulation pipeline will
of Auckland Airport’s
The wider airport development programme is shown in the eight key projects pictured here
be required
The eight anchor projects are the foundation of the overall
The remote stands will provide space for programme of work Auckland Airport is undertaking to
major infrastructure build aircraft that layover for several hours before
departing again and will have in-ground jet fuel
develop transport, airfield and terminal infrastructure. The taxiways and remote stands will be
built to Code F standard, which is required
reticulation. They are:
for the largest operating aircraft (greater
• the taxiway and remote stand airfield development than 65m wingspan) now and in the future.
Auckland Airport’s airfield expansion project marks the next critical phase Combined, these projects will provide some
of its multi-billion infrastructure development programme designed to additional airfield capacity to allow the • the second runway
revitalise the airport over the next decade. relocation of existing aircraft activities, when • a new cargo facility
the development of the future domestic jet
• a new international arrivals’ area
“This is the beginning of a series of truly transformational projects at terminal takes place.
Auckland Airport,” said André Lovatt, Auckland Airport’s general manager, • rejuvenation of the current domestic terminal
airport development and delivery. The new airfield will be built to specifications • the new domestic jet terminal
“The complete development programme of work we are embarking on to accommodate the world’s largest passenger
• reconfiguration of the international forecourt drop-off
will yield some really great benefits and enable us to accommodate the 40 planes with a wingspan of 65m to 80m.
million passengers and 260,000 flights that are expected by 2044.” and pick up facility
“Auckland Airport is working hard to grow • further development of the road network north of the
The airfield development is the first of eight major infrastructure projects New Zealand’s success in travel, trade and
terminals
Auckland Airport will commence over the next decade and follows the tourism, and this project is a critical piece of
completion of major upgrades to the international terminal over the last the puzzle in enabling our future masterplan,”
four years. said Mr Lovatt. “
Over the next three years, more than 250,000sqm of land or about 30
It’s going to be a busy year on the roads around
rugby pitches will be converted into new airfield space at the western end The remote stands are designed to give us the airport. We are about to start a programme of
of the airport beside the international terminal. This will add more than 18 some head room, so that one day they can work developing the northern entry to the airport.
per cent surface area to the airfield. become physically connected gates to the Called the Northern Network, it will encompass
terminal, as growth in airline and passenger widening of certain roads; upgrades to, and new,
This project is one of Auckland Airport’s single largest capital investments numbers demands it over time.” intersections; establishing Altitude Drive which
in the airfield since it was built in 1966. It will deliver an additional taxiway,
provides for northbound and southbound travel
extension of an existing taxiway and development of six remote stands for Construction company CPB Contractors off George Bolt Memorial Drive and Tom Pearce
the parking and servicing of aircraft. (a New Zealand CIMIC Group company) has Drive arterial roads; and a new exit road for the
been named as the preferred contractor for integrated terminal.
The taxiways will improve aircraft movement around the airfield and will the project and earthworks are expected to
eventually link between the current runway and the future second runway. begin mid-year and be completed by late 2021.
8 9
Airport Precinct Stats
800+
Businesses around the
Airport Auckland area
15000+ People working at and
around the Airport
Big Plans for Auckland Airport
Huge expansion and service improvements over the next 20 years
INVESTING
$1 million
EVERY WORKING DAY
$1.8 billion
BY 2022
$1.8 billion 27,000 1.4 billion
LIFT ON AUCKLAND’S GDP NEW LONG TERM LIFT IN HOUSEHOLD
FULL TIME JOBS INCOMES
10
Second Nature Blomfield
Both rivers host rafting, kayaking and tubing expeditions
which include river swimming and river crossing exercises.
Recently, raft building has been added as a great team
fun-filled exercise.
Charitable Trust The Momentum Hub is a container village and the base
of operations to various charities active in the South
Auckland area. These charities receive office space free
Cartoonist / Illustrator
of charge with power and internet included along with Coming from three generations of cartoonists, Darren Blomfield is
The Second Nature Charitable Trust was originally formed meeting and lecture facilities available without charge.
under the name Counties Manukau Pacific Trust through building a niche business as a corporate events cartoonist.
Current charities using the facility are John Walker Find
collaboration between the current Trust Chairman, Sir Noel your Field of Dreams, Big Buddy, the Rising Foundation,
Robinson and former mayor of Manukau, Sir Barry Curtis. Darren has pursued his cartooning ambitions for over 35 years and is
i-Sport, Life Education and Manukau Beautification Trust.
Series 5 Volume 6 Issue No. 30
now realising his dream as a press cartoonist and event cartoonist and
The driving force behind the formation of the Trust was to continuing the Blomfield legacy.
The commercial activities of the Trust support an
provide a meeting point for the people of South Auckland extensive community good programme which serves
with the ultimate beneficiaries of the Trust being South From small intimate corporate functions to large business seminars and Series 5 Volume 6 Issue No. 30
more than 50,000 students annually via subsidised or free
September October 2018
trade shows - he is bringing his artisan skill to a contemporary new
RRP $12.50 incl GST
Auckland’s youth. arts, culture, drama, music, sports and safety programmes. PASTEL
market. PIECES
The Board of Trustees aims to double this number and with Kathryn
Millard
Much has happened since the initial building of what is now
THE NEW ZEALAND ARTIST MAGAZINE
serve more than 100,000 children by 2025. Darren’s clients so far have included Dolce & Gabbana, Master
Part 7
the Vodafone Events Centre. Subsequent additions on the ART TRAILS
site have been the Sir Noel Robinson Conference Centre Electricians, NIB insurance, Ebbett Volkswagen. • COROMANDEL
• MANAWATU
The value of community support that the Trust made last
which seamlessly attaches to the original Events Centre, year exceeds $1.3million and has surpassed $8million in NEW
the Vector Wero Whitewater Park, the creation of the He is also a published press cartoonist for the TIMES newspapers in PRODUCTS
total since its formation. This will only increase with the East Auckland and has been featured on the cover of NZ Artist Magazine.
Momentum Hub and Ramada Hotel which is due to open addition of a new attraction next year being Wero Climb ARTISTS FORUM
Dougie Chowns
in October of this year. – a complementary physical challenging activity which will Sketchbook, part 21
Engaging with clients and customers alike, he adds a unique form of
September/October 2018
be located adjacent to the lake within the water park.
FEATURED INSIDE:
The Vector Wero Whitewater Park boasts an Olympic entertainment which is growing in popularity. • Claire Delaney • Darren Blomfield • Kerry Lanauze •
• Mark Anstis • M. Francis McCarthy • Tatyana Kulida •
standard canoe slalom white-water course, a grade two The Trust is in fine health and looks forward to providing
recreational water course and the world’s highest Darren is also developing his medium by utilizing modern digital
to the betterment of the people of South Auckland for technology (iPad and Wacom tablet) and in particular wants to specialise
man-made kayaking and rafting waterfall. generations to come. in live presentation drawing by illustrating in real-time for speakers at
seminars.
For Darren it’s all about “following the dream”.
!
imate
h
t g
uildin
ul
s
the
ru
team b
The Ultimate Cartoonist for your event
Are you looking to inject some adrenaline to
your conference or team meeting? Hold your
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Package includes River Rush Rafting, venue hire,
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Give a rush of excitement to your team. Contact
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SPECIAL OFFER! Receive an upgrade of complimentary
stand up paddleboarding or flat water kayaking when
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770 Great South Rd, Manukau 2014
South Auckland Motors
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Business Development
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