A comprehensive expressions of interest sales campaign for the land and buildings associated with the former Auckland International College (AIC) in Blockhouse Bay, resulted in an unconditional sale to an existing education provider with settlement to occur late-2025.

There were 15 offers received at the campaign’s conclusion, and the property sold for $15.5 million in a deal brokered by Wesley Gerber, Cameron Melhuish and Craig Smith, of Bayleys.

The property’s Japan-based vendor is exiting the New Zealand market following a phased shutdown of AIC due to declining rolls and uncertainty post-pandemic, with the Blockhouse Bay site the last of its education-related property assets to be divested.

The Residential – Mixed Housing Urban zoned site at 29, 33 and 37 Heaphy Street, Blockhouse Bay comprises 1.28ha of land held in multiple titles. It supports a number of education blocks with classrooms, staff administration areas, library, science labs, art studio, dining areas, and student breakout zones, along with substantial green spaces. The total building area is around 2,800sqm, and there are 45 on-site car parks.

Gerber says Bayleys received offers with a combined value in excess of $177 million. While the successful purchaser is an education provider looking to expand its existing operation and attracted by the turn-key potential the former AIC site offers, he says the majority of interest came from the development sector.

“The large flat site’s residential zoning overlay would allow medium density development and as Blockhouse Bay is a well-connected and affordable suburb, developers clearly saw value in the location off the back of stabilising construction costs and lower cost of debt.

“The value of the interest we received is indicative of the development sector’s proactive return to the Auckland market, with the generous size of this site resonating with developers looking to undertake intensive residential projects.

“There’s undeniable and unrequited demand for development sites with reasonable scale and this sales campaign proves there is millions and millions circulating in the Auckland market, demonstrating rising confidence.”

Despite the coalition government’s support for the charter school movement in New Zealand, Gerber says they did not receive any expressions of interest from potential charter school operators.

AIC was New Zealand’s only school exclusively dedicated to providing the International Baccalaureate Diploma Programme (IBDP) and at its height, catered for around 300 students, mainly from China, Korea, India, Malaysia, Vietnam, Japan and Hong Kong.

Figures released recently show that foreign student enrolments are rising again in New Zealand, after expended pandemic lockdowns dramatically impacted the sector.