A former rest home established by the founder of Smith and Caughey’s has been placed on the market for sale, possibly representing one of Auckland's largest redevelopment opportunities.
The Marianne Caughey Smith-Preston Memorial Rest Homes Trust Board is selling their 3.17ha site in Auckland's Remuera, two years after deciding to close the rest home.
The property at 17 Upland Road has a 2017 CV of $100 million and its size, zoning and location means it could be used for a wide variety of purposes including high-density residential homes, build-to-rent housing or aged care facilities.
The trust is the legacy of businesswoman and philanthropist Marianne Caughey Preston MBE, who was a founder of Auckland retail institution Smith and Caughey’s.
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She died in 1938, requesting that most of her estate be used to establish a trust to provide rest home care for the "infirm, aged or those suffering hardship" in Auckland.
The rest home at Upland Road was built in the 1960s and evolved to its completed form over 60 years of expansion. In 2017 the trust's board undertook a strategic review of the rest home and decommissioned its operations.
The home, which housed more than 100 residents, had lost $1.1 million in 2016, according to the accounts.
Colliers capital markets director Blair Peterken, who is marketing the property on behalf of the trust, says the site is one of the largest redevelopment opportunities in the country. "If investors are looking for scale, then this is it," he says.
“Extensive improvements are in place from the site’s former use as a large-scale rest home. A buyer could either integrate these improvements into a redevelopment plan or completely transform the site under a new masterplan.
“It is zoned Mixed Housing Suburban under the Auckland Unitary Plan, which provides for moderately intensive residential development.
“A new owner will have a wide range of redevelopment options to consider. Subject to resource consent, these could include single houses, townhouses, apartments, build-to-rent accommodation, aged care, education, subdivision, or a comprehensive development featuring a combination of these.”
The Caughey Preston home in Auckland's Remuera was closed in 2017. Photo / Doug Sherring
The site provides 36m of frontage and access to Upland Road, 149m of frontage and access to Ventnor Road and additional access onto Lucerne Road.
Gareth Fraser, Auckland director of investment sales at Colliers, says the site is located in a premium area. “Remuera is an affluent residential area that enjoys good transport links.
“The property is close to the Upland Road shops, Remuera Village, and Newmarket, which is home to a new Westfield.
“Remuera also boasts some of New Zealand’s most prestigious primary and secondary schools, including Kings, St Kentigern, Baradene, St Cuthbert’s, Diocesan and Dilworth."
The property comprises some 12,435sq m of improvements which provided hospital, aged care residential and ancillary services.
“The improvements comprise a 104-bed hospital and rest home accommodation for 148 residents across three buildings including a secure dementia unit. The total existing bed capacity is circa 252," says Peter Herdson, national director of capital markets at Colliers.
“The oldest clinical buildings on the site were constructed in the 1950s, with most of the remaining improvements constructed in the 1970s and 1980s. The original buildings also included a reception, central kitchen and ancillary buildings.
“The most recent improvements include an extension to the existing hospital building in the centre of the site which was undertaken around 2011.
“The balance of the site provides mature trees and communal open space. Car parking is generally provided throughout the site, with additional undercroft car parking provided under main hospital improvements.”
Josh Coburn, site sales director at Colliers, says it is the largest conceivable residential development site in the wider Remuera area, and will be attractive for numerous potential development outcomes.
“We strongly recommend prospective buyers seek specialist planning advice to determine what is possible with the site.”
17 Upland Road for sale by expressions of interest, closing at 4pm on March 18.
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