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$2b infrastructure spending puts Drury centre stage

15 November 2017

Drury has become Auckland’s biggest development zone, with $2 billion of infrastructure underway for thousands of houses and jobs.

From what was a small township a few years ago, with 1200 homes and 3500 people, up by only 140 in six years, it will burgeon over the next decade to become home for 30,000 people in 6100 to 10,800 homes across 2000ha of what are mainly bare paddocks now.

More than 5000 jobs will be created in a 180ha industrial park, with 95ha of open space. A new town centre will spring up on 50ha in Drury east, creating further jobs.

The extent of the infrastructure includes the $268 million SH1 upgrade from Manukau to Papakura, plus the planned upgrades of SH2, and SH1 from Papakura to Drury, and then on to Bombay. It will also include the development of numerous local highways, a new bus corridor from Manukau to Drury, water infrastructure and the development of electric rail and stations in the area.

Council-controlled Auckland Transport also has plans, including the potential for significant improvements and extensions to Mill Rd.

In recognition of the amount of development planned for Drury, Pukekohe and Paerata, the previous government agreed this year to a $387 million infrastructure fund for significant road, rail and water projects in the region.

The massive development of the area involves some of the largest privately funded residential and mixed-use developments.

A planned and large piece of it is the industrial expansion by Stevenson Group from its quarry in the hills east of SH1 across to the highway. The company secured planning approval in 2013 to rezone 361ha of rural and quarry land for a mix of industrial & business development.

In 2015, Charles Ma’s Karaka & Drury had its 85ha Auranga development, with seven kilometres of riparian estuary frontage, approved as a special housing area for 1350 new homes over seven to nine years. The first homes will be ready next year.

The land was rural but is zoned future urban under the Auckland Unitary Plan and the project is aimed at providing housing near some key industries and Stevenson's business park.

Kiwi Property Group spotted Drury’s potential and bought 51.3ha at Drury in April. Kiwi’s three greenfield sites are next to the junction of the Southern Motorway, Great South Rd and the North Island main trunk railway line.

The council planning committee adopted its refreshed future urban land supply strategy in July, confirming its 1016ha growth target at Drury west of SH1. The council expects the land release in that wider area to start in 2022 north of SH22, and in 2028 south of SH22.

Mr Ma has invested $46 million for water infrastructure, two bridge upgrades and additional investment in walkways, coastal tracks and cycleways, reserves and parks including voluntary planting and regeneration at Auranga.

He believes this investment is part of the responsibility of building on previously undeveloped land. “Regardless of the point on the compass, development in Auckland’s outskirts will play an important role in how we accommodate rapid growth so the timely delivery of infrastructure is an essential component.”

“With about 2000ha of land identified for urban development in the south alone with much of this is in and around Drury, we recognised early on the need to advocate and contribute to infrastructure to make the area a great place to live.”

On Stevenson's land, it plans to spend $300 million getting its Drury South project ready for development, of which $68 million in road and water infrastructure could be funded by the government’s infrastructure fund.

The funding would go into a major new arterial road running parallel to the Southern Motorway, and new water and wastewater connections, including a new pipeline to the main Waikato River pipeline.

As well as 45ha for housing, it includes a 180ha industrial and commercial park and 95ha of public open space.  The group is estimating 19,100 jobs will be created across the Auckland region with 6900 jobs at the industrial park, adding $2.3 billion a year to regional GDP.

Drury South has been chosen for the first project to access the government's $600 million fund because it has planning permission and the first houses could be built by 2019.

All up, 5300ha of land has been identified in Drury South, Drury West, Paerata and Pukekohe in the south of the city for fast-tracking housing through upgrading roads and building new railway stations at Paerata and Drury West.

Kiwi Property Group has settled its acquisition of 30.6ha at Drury after receiving approval from the Overseas Investment Office.

Chief executive Chris Gudgeon says the settlement brings Kiwi Property’s total landholdings to 42.7ha, bought for $39.8 million. A third land parcel of 8.6ha has been secured via a right of first refusal, with the price to be determined with reference to the market when the right is exercised.

Kiwi Property chief executive Chris Gudgeon says the landholding reinforces Kiwi Property’s commitment to being part of Auckland’s future growth.

“Our vision is to develop a town centre to complement the existing Drury town centre, which would be staged over the next 20 years to coincide with predicted population growth, household formation and employment growth in South Auckland.”