Burns Philp offloads top block

by Coran Lill

Friday 20th February 2004

Burns Philp's New Zealand Food Industries could collect almost $20 million from the sale of its Ponsonby yeast factory as it prepares to move to cheaper South Auckland premises.

The 13,262sq m site, which takes up the best part of a block at the southern end of Ponsonby's shopping and entertainment strip, borders Williamson Ave, Pollen St and Crummer Rd.

The sale has been prompted by the Commerce Commission's requirement that, as part of Burns Philp's takeover of Goodman Fielder, NZFI offload its yeast business here.

In addition, Burns Philp spokesman Graham Brown said using the land as an industrial site could no longer be justified financially.

NZFI will lease the site back from the buyer for a year for $200,000 while it relocates.

The property is in two titles and has mixed-use zoning allowing residential, retail or commercial development or a combination of these. Bruce Whillans of Bayleys Real Estate, which is managing the sale, predicted the titles would go to one buyer.

Neither Mr Brown or Mr Whillans wanted to comment about how much the property might fetch but Mr Whillans said properties with comparable zoning were selling "for $1500 a metre plus" an estimate making the Ponsonby property worth at least $1.8 million.

Mr Whillans said Ponsonby had experienced surging demand for property in recent years from businesses and house buyers but there had been little land available to satisfy this, particularly land close to Ponsonby Rd.

"It would definitely be one of the sought after development sites in Auckland because of its size, zoning flexibility and its proximity to the central business district," Mr Whillans said.

The property has a maximum height allowance of 15 metres but Mr Whillans said the area is likely to be developed more comprehensively than "just terrace houses" and may include a plaza-styled construction.

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