Landmark Ellerslie Site Offering Income and Upside

Underpinned by strong and sustainable holding income from a fully-occupied residential accommodation operation and with future upzoning potential, one of the largest landholdings in Ellerslie is now for sale.

The predominantly flat freehold 5,530sqm site at 28–34 Robert Street, Ellerslie features approximately 2,278sqm of improvements plus generous parking areas and open areas. Developed in the mid‑1970s as the Gallop Motor Inn, the property operated for many years as a full‑service hospitality facility, incorporating guest rooms, restaurant and bar facilities, and conference spaces. Its enduring popularity was underpinned by proximity to Ellerslie Racecourse and key transport corridors.

The property has since been reconfigured into a well‑established boarding house operation comprising 68 rooms, including eight fully self‑contained one‑bedroom apartments, with the balance configured as studio units. Shared amenities include a commercial‑scale kitchen, laundry facilities and extensive on‑site parking. The original reception area remains alongside a fully self‑contained three‑bedroom manager’s residence, while former hospitality areas are currently utilised for storage and ancillary workspace.

The well-presented property returns net annual income of circa-$774,000 plus GST, and is efficiently managed and maintained by the current owners. Rooms have been progressively upgraded, and grounds meticulously cared for, with the complex achieving in excess of 90 percent occupancy over the past three years. All 68 units are at full occupancy with the exception of one studio unit being used as a show unit for the sale programme.

Under the Auckland Unitary Plan, Plan Change 120 (PC120) is expected to rezone the property from its current Mixed Housing Urban overlay to Terrace Housing and Apartment Buildings (THAB). This would unlock materially-higher density and height allowances, and given the property’s connectivity with Ellerslie Train Station and major motorway interchanges, would directly align the site with Auckland’s transit-oriented growth.

Located just minutes’ walk from Ellerslie’s increasingly vibrant town centre, the property benefits from access to cafés, restaurants, convenience retail and essential services, enhancing future residential appeal and supporting redevelopment to a higher-density model.

The property is for sale by deadline private treaty closing Thursday 21st May, unless sold prior through Jason Seymour and Cameron Melhuish, of Bayleys Capital Markets team.

“The opportunity to acquire a future residential development asset of this scale in a tightly held city-fringe suburb will not be lost on astute investors. Hotel and motel investors, operators and managers may also see scope to expand the existing operation, with under-utilised former hospitality areas offering clear add‑value potential for conversion to additional accommodation or alternative uses, subject to the necessary consents.

“Operational management of the property could be integrated into a purchaser’s existing portfolio or outsourced, further supporting flexibility.

“However, beyond its cashflow strengths, the site’s most compelling value driver is its location, scale and the development yield uplift potential associated with future rezoning.”

Seymour says the ability to generate strong income from day one materially enhances the investment fundamentals, and broadens the pool of potential purchasers.

“The holding income will provide certainty through planning and development phases, offering optionality for developers, long‑term land bankers, value‑add investors and specialist residential buyers, including those active in the build‑to‑rent (BTR) sector.

“Under PC120, the THAB designation is one of Auckland’s most favourable intensification pathways, and preliminary massing indicates potential for more than 15,000sqm of gross floor area and over 200 residential units in a master-planned development, subject to planning outcomes.

“The THAB overlay supports multi-level residential typologies including terraces, walk-ups, and apartment developments, and the site’s scale and configuration would allow for the staged delivery of dwellings, minimising capital exposure and aligning with presales strategies.”

Ellerslie’s strong schooling, retail and hospitality offerings, access to employment hubs, and sustained buyer demand underpin its appeal and suitability for medium‑ to high‑density redevelopment. Melhuish notes nearby projects signal increasing developer confidence in the Auckland housing market.

“With Simplicity developing a substantial BTR project nearby and Fletcher Living advancing The Hill master‑planned precinct across the racecourse, Ellerslie’s residential transformation is well underway,” he says.

“Against this backdrop, the property represents one of the last remaining large‑scale freehold development sites within walking distance of Ellerslie Village and is an increasingly scarce offering in Auckland’s city fringe where affordable housing demand remains strong.

“The landholding will resonate with developers seeking to balance development risk with market absorption over time.”