Wynyard Quarter looking for developers

by Media Services on 2 Mar 2010 Colliers International is working with Sea+City Projects to create a marine industry precinct in the Wynyard Quarter of Auckland Harbour, a project that is designed to 'put New Zealand into the top superyacht refit locations in the world, earning an estimated NZ$200 million a year for New Zealand and creating up to 1500 new jobs'.

John Dalzell, chief executive and project director for Sea+City Projects says that 'after discussions, planning and consultation, the transformation of a major part of Auckland's downtown waterfront is taking major steps forward to achieve an environment in which the marine industry can thrive'.

Sea+City Projects is the company established by Auckland Regional Holdings to manage the project.

Colliers director Alan McMahon says the agency has provided consulting services to Sea+City Project for a couple of years in areas such as demand studies and ground lease structures. 'Now we have been appointed as the marketing consultants for all but the retail and residential elements of the project,' McMahon says.

'We are working now on two main sites, which are a new hotel on the current Alinghi base and the creation of the new marine industry area on the old Mobil site on Beaumont and Jellicoe Sts.'

McMahon says attention is focused on the development of the 1.6ha Mobil site which will also provide 400m of berthage space available for redevelopment as a yacht refitting and commissioning yard.

'The vision for the area sees a new precinct created that will offer capacity for the industry to work on half a dozen of the biggest 80m-long superyachts simultaneously,' says McMahon, 'It would also be able to handle commissioning and the stepping of masts from new boats built at the developing superyacht construction cluster at Hobsonville, and from locations as far away as New Plymouth.'

As part of the plan, a sheltered deep water 'staging harbour' would be created near the western end of Jellicoe St with new jetties accommodating a number of superyachts and other vessels.

Within the next four to eight years, slipways will be developed to create further opportunities to haul out greater numbers of vessels.

Additional facilities could include new machinery capable of lifting vessels weighing up to 1000 tonnes out of the water, multifunctional buildings and hard stand areas where vessels could be worked on.

McMahon says Auckland, on average, 'turns away' $50 million of yacht and boat refitting work every year.
'To date, the marine industry has handled up to 18 refits in a year, but could quadruple this as soon as suitable infrastructure is in place, as well as servicing large commercial craft.'

The plans also include significant berthage to provide in-water refit and repair facilities, along with the new staging harbour with temporary work berths where new vessels could be commissioned. Specific facilities for servicing commercial and fishing vessels from 25m to 80m in length will be provided within the new marine industry precinct.

McMahon says the priority is now to attract a buyer for the leasehold interest in the 1.6ha site.

This is likely to be an operator or operators with specialist marine industry skills or an experienced developer, who would also be able to finance the installation of a 1000-tonne boat lift, the creation of water space for the biggest yachts and ancillary building costs.

'Colliers is now seeking an umbrella developer to create and then either sublease the site or operate it themselves, as has been seen in Australia,' McMahon says. 'Marketing is set to begin next month to coincide with the Auckland International Boat Show in Auckland's Viaduct Harbour. 'There are probably three or four companies that could do this.'

McMahon cites likely development costs of around $100 million. 'The market will be New Zealand-based marine industry experts and international operators who can see the potential for Auckland as a global marine industry hub.'

Colliers says the approved plan allows for the development of a residential tower on the site as well as all the marine facilities.

McMahon says Auckland, on average, 'turns away' $50 million of yacht and boat refitting work every year.
'To date, the marine industry has handled up to 18 refits in a year, but could quadruple this as soon as suitable infrastructure is in place, as well as servicing large commercial craft.'

Peter Busfield, executive director of the New Zealand Marine Industry Association, says Auckland is ideal for superyacht refits and allied work. 'Visiting superyacht owners, captains and crew choose Auckland for their multi-million-dollar refurbishments in large part because they are close to the city centre and to the 100 marine businesses based in and around the Wynyard Quarter and Westhaven precincts. In other countries they frequently need to travel considerable distances to secure products and services and to go out at night or return to their hotel rooms.

'There are about 800 superyachts currently looking for refit opportunities, but, while New Zealand has all the skills, it is turning business away due to having insufficient deep sheltered water alongside haulout areas and other facilities.
'Having firm plans to finance and build new infrastructure would send a very reassuring message to the skippers and owners of luxury craft, who are sometimes scheduling refits for their boats several years in advance.'