Kiwi Property is buying three large development sites in South Auckland, as a strategic long-term holding that will capitalise on Auckland's population growth.
New Zealand's largest listed property company paid $39.8 million for two sites totalling 42.7 hectares in Drury, zoned 'Future Urban' under the Auckland Unitary Plan and located next to the Southern Motorway.
It said it had also secured a first option on a smaller 8.6 hectare parcel, with a market price to be determined when that option was exercised.
Chief executive Chris Gudgeon said Kiwi aimed to develop a town centre in Drury over the next 20 years, which would complement the existing centre.
He said the development site would eventually benefit from rail and other transportation improvements.
"This is an exciting opportunity for Kiwi Property. Intensification at key transport nodes and master-planned town centre developments are going to be a big part of our future under the Auckland Unitary Plan," said Mr Gudgeon.
In addition to residential development, he said Drury South's 300 hectare enterprise district was intended to provide world-class facilities for logistics, manufacturing and commercial operations as well as community facilities and housing.