Pompallier on Ponsonby Enduring Value Through Partnership

Introduction

As the largest landowner in New Zealand after the Crown, Auckland Council is always looking for ways to ensure the property it owns delivers value for Aucklanders. One way it does this is through its service property optimisation (SPO) approach, which seeks to improve community outcomes by making better use of underperforming service assets.

A recent opportunity arose to make better use of an Auckland Transport–managed open-air public car park in a well-located and desirable part of Ponsonby. Given the site’s potential and interest from the private sector, council explored how the site could deliver greater value for Aucklanders using the SPO approach.

Service property optimisation is a practical funding tool that enables council to make better use of land it already owns while protecting existing community services and improving public outcomes. It focuses on service assets that are under-utilised, not fit for purpose, or no longer well aligned with current or future community needs, and where there is limited capital funding available to address those issues.

Instead of increasing rates or debt, or selling land outright to generate income, council looks for opportunities to partner with others to unlock a site’s full potential and deliver improved public services and spaces. This approach does not replace traditional council ownership and maintenance of community facilities such as libraries or community centres but provides an additional option to deliver greater benefits for Aucklanders while minimising pressure on ratepayer funding.

Working in partnership with Urban Collective (the owner of the neighbouring property), with Auckland Transport closely involved as the service asset owner, council identified a solution that would retain essential public facilities while unlocking new public space, improved amenities and long-term economic and community value.

The result will be Pompallier on Ponsonby, a project that reflects council’s commitment to thoughtful urban regeneration. It supports growth, improves the public realm, and delivers enduring benefits for the local community, while minimising cost to ratepayers.

The Opportunity

The site at 2 Pompallier Terrace, once an open-air public car park with a small public toilet, was an under-used council asset in a prime location. With its position in a vibrant neighbourhood, it has the potential to deliver far more for the community. Redevelopment could spark private-sector investment, helping fund upgrades that unlock greater public benefit and economic value in the Three Lamps precinct, while bringing more homes to the area.

Urban Collective, a boutique developer specialising in modern, high quality projects that reflect the local area, expressed interest in incorporating 2 Pompallier Terrace into a neighbouring mixed-use development it was planning.

Investigations by AT and the council’s Community Facilities team confirmed an ongoing need for public parking and public toilets in the area. The council’s SPO approach enabled a partnership with the developer that allows the site to be redeveloped while ensuring key public amenities (a new basement car park and public toilet) are modernised and remain in council ownership.

This approach also makes it possible to deliver a mixed-use development including new homes, offices, premium retail and hospitality offerings, and a new publicly accessible plaza, all in the heart of Ponsonby Road, without increasing pressure on ratepayer funding or debt.

The sale of the airspace, enabling the developer to build above the existing carpark site, was approved by the council’s Finance and Performance Committee in December 2021, with support from AT and the Waitematā Local Board.

The Outcome

Construction began in November 2024, with completion expected by late 2026. Once finished, Pompallier on Ponsonby will become a vibrant destination featuring:

• A landscaped public plaza with native planting and seating
• Improved pedestrian links between Ponsonby Road, Cowan Street and Pompallier Terrace
• A minimum of 43 underground public parking spaces, as specified by Auckland Transport, plus bicycle parking and electric vehicle charging
• A new council-owned public toilet
• Premium retail and hospitality, commercial space and high-end apartments arranged to activate and overlook the public plaza.

The development will support local businesses, increase housing choice in a popular location, and enhance the public realm. By leveraging private investment while retaining core public infrastructure, the project demonstrates how the SPO approach can deliver long-term civic, economic and community benefits.

Kelly McEwan, Development Director at Urban Collective, says:

“Pompallier on Ponsonby demonstrates what can be achieved when public and private partners work together with a shared commitment to quality and long- term value. Working constructively with Auckland Council and Auckland Transport has enabled us to thoughtfully integrate essential public infrastructure with a high- quality mixed- use development that brings new homes, commercial space and a generous public plaza into the heart of Ponsonby. The project enhances the public realm, supports the local precinct, and delivers enduring value for the community.”