Archive | Wynyard Quarter

Panuku to move to former IBM space on Wyndham St

Argosy Property Ltd has reached an agreement to lease 2657m² on the ground & first floors of the former IBM building at 82 Wyndham St in central Auckland to Auckland Council’s property arm, Panuku Development Auckland, which has been based at Westhaven.

The 9-year lease term will start in August and has a break clause (with penalty) at 6 years.

Long-term tenant Boffa Miskell occupies the top floor on a recently renewed lease, leaving one 1575m² floor still available. Argosy chief executive Peter Mence said yesterday the company had had good inquiry from marketing of the remaining floor, which will be available for occupation in 2018.

Argosy is completing an extensive $9 million refurbishment of the entire Wyndham St building to a minimum 4 green star built rating and is targeting a 4 star Nabers NZ energy efficiency rating.

Following the upgrade, Mr Mence said the building would provide very efficient, cost-effective space and an attractive working environment for tenants: “New services will include facilities to encourage cycling to work, an increase in the building’s fresh air supply, a smart lighting system linked to automatic blinds, a window film that improves solar conversion, a variable refrigerant flow air-conditioning system and the latest water-saving & metering systems to enable usage to be measured for Nabers NZ.

Panuku chief executive Roger MacDonald said one objective of the move was to be closer to the Auckland Council headquarters on Albert St: “Currently the Panuku offices at Pier 21 on Westhaven Drive are about 25 minutes away by foot.”

He said Panuku would make a number of long-term savings from moving into a refurbished building.

IBM has moved to 2 floors in the new Bayleys House at 30 Gaunt St in the Wynyard Quarter, behind Fonterra Group Ltd’s Fanshawe St premises and a block from the GridAKL innovation hub.

The Fonterra & Bayleys buildings are in the Wynyard Precinct Holdings Ltd portfolio held by a joint venture between the Goodman Property Trust & Singapore sovereign wealth fund GIC.

Attribution: Argosy & Panuku releases, Goodman website.

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Precinct lifts profit and advances office strategy

NZX-listed property investor Precinct Properties NZ Ltd – now in development mode as it builds & enhances its own sites – lifted net profit after tax by 12.4% in the December half-year.

It reported quick progress from 3 development precincts – Commercial Bay in downtown Auckland, the nearby Wynyard Quarter and, in Wellington, a start on Bowen Campus.

The company announced the leasing of 2700m² on 2 floors in the new PWC Tower at Commercial Bay to law firm DLA Piper, which wants to create new-style workspaces there.

Precinct added to that vibe by announcing it had taken a 50% interest in Generator, which operates 3000m² of co-working space at 3 sites at Britomart.

Image above, October 2016: Looking through Commercial Bay, Precinct Properties’ redevelopment of the Downtown Shopping Centre site (the remains of the building at right, now demolished and with earthworks started for the rail tunnels into Britomart Station); the view from the current PWC Tower across Commercial Bay to the old central post office at Britomart, through the station and on to EY & Westpac’s offices.

Half-year performance summary:

  • Net profit after tax increased by 12.4% to $39.1 million ($34.8 million in 2015)
  • Net operating income increased by 8.7% to $38.8 million (35.7 million)
  • Half-year dividend of 2.8c/share (2.7c/share), representing a 3.7% year-on-year increase
  • Earnings & dividend guidance for the 2017 financial year unchanged at 6.2c/share for earnings and 5.6c/share for dividen
  • Strong financial position with loan:value ratio 20.1% (14.4% at 30 June 2016).

Development progress

Wynyard Quarter:

  • Stage 1 100% leased, 8 months ahead of completion. The $35.9 million Mason Brothers building was the first project to be completed in December and represents a major milestone for the business.

Commercial Bay:

Commercial Bay is the name Precinct has given to the former Downtown Shopping Centre site that ran from Lower Queen St across to Albert St, and the length of that block on Customs St West through to Quay St on the city waterfront.

It also now incorporates the former Queen Elizabeth Square that sat between 2 Precinct-owned buildings along Lower Queen St, HSBC House fronting Quay St and Zurich House on Customs St.

Earthworks are underway for the 39-floor tower on the corner of Customs St West & Albert St and for the city rail link tunnels that will run into Britomart beneath the commercial structures, and accountancy firm PricewaterhouseCoopers has taken naming rights on the tower. PWC has had naming rights on the tower across Albert St & fronting Quay St, also owned by Precinct, since it opened in 2003.

Excavation, retaining & piling are expected to be largely complete by the middle of 2017.

  • Global law firm DLA Piper has committed to 2 floors in the new PwC Tower, taking preleasing by income at the new tower to 64% (from 52% at December 2015) on a weight average lease term of 13.3 years. This commitment takes the amount of space secured outside the portfolio to 8000m² or about a third of committed leases
  • The agreement to acquire Queen Elizabeth Square on Lower Queen St from Auckland Council became unconditional in December and all resource consents were obtained.


  • Preleasing across all of Precinct’s office developments is now 77%
    99% portfolio occupancy and strong weighted lease term
  • Leasing over the period has been strong, particularly in Wellington, with overall occupancy rising to 99% (98% at 30 June 2016)
  • Weighted average lease term across the portfolio is 5.9 years (6.3 years at 30 June 2016), increasing to 8.1 years after including developments
  • Following the Kaikoura earthquake, a $12 million devaluation has been booked at Deloitte House in Wellington, based on provisional repair estimates.

Enhancing the strategy

Precinct chief executive Scott Pritchard said the increase in net profit was mainly attributable to lower interest & tax expense and a fair value gain in financial instruments. Net operating income, which adjusts for a number of non-cash items, increased 8.7% ($3.1 million) to $38.8 million ($35.7 million at December 2015) or 3.2c/share.

But the performance goes well beyond immediate income: “We achieved a number of milestones across our business and have significantly advanced our long-term strategy.

“We committed to & commenced works at Bowen Campus in Wellington, progressed works at Commercial Bay, including the demolition of the old shopping centre, enjoyed leasing success at Commercial Bay and completed the Mason Brothers building at Wynyard Quarter stage 1.

“The completion of the Mason Brothers building is a major milestone for the business as it is the first project to be completed and sees Precinct begin to transform its portfolio.”

Looking through again, November 2016: This view shows the nose of a cruise ship poking through between 2 Precinct buildings, the HSBC tower at 1 Queen St and Zurich House at 21 Queen St. In the foreground, works have started for the rail tunnels into Britomart from Aotea Station & Albert St, and for the Commercial Bay redevelopment.

At Commercial Bay, DLA Piper’s commitment to 2700m² was a signing from outside Precinct’s existing portfolio, which Mr Pritchard said illustrated the attraction of this cbd waterfront precinct.

The agreement to acquire Queen Elizabeth Square from Auckland Council became unconditional in December. The land is now formally incorporated into the Commercial Bay retail development due to open in late 2018: “This provides certainty to allow the retail leasing programme to advance responding to significant interest from retailers.”

Mr Pritchard said the conditional acquisition of a 50% interest in Generator aligned well with Precinct’s values & its strategy of being a city centre specialist: “It has a strong management team and offers the opportunity to enhance the amenity & service levels that Precinct can offer its clients. It will also enable Precinct to expand its traditional client base with smaller businesses, helping to grow occupancy & demand.”

Interim results                                                                                         

Net property income reduced to $45.9 million ($53.7 million). M Pritchard said: “After adjusting for recent asset sales & foregone income associated with our development projects, like-for-like income was $0.7 million lower than the comparative period. This reduction was a result of the 14 November Kaikoura earthquake. After allowing for the rental abatement at Deloitte House and earthquake-related costs, like-for-like income was slightly higher than the comparative period.

“Precinct’s Wellington portfolio performed very well during the earthquake, with all but Deloitte House being assessed by engineers & reopened within 48 hours.

“Precinct’s structural engineers, Holmes Consulting, were instructed to undertake a detailed structural investigation of Deloitte House, which concluded relatively minor structural damage had occurred. Notwithstanding this, further detailed assessments have identified that the seismic strength of the building is lower than previous assessments.”

Mr Pritchard said an internal review of the 30 June 2016 property valuations indicated no material value movement in the period for all the assets, apart from Deloitte House. The provisional estimated cost associated with remediating the damage and making seismic improvements resulted in the independent valuation of Deloitte House falling by $12.1 million to $33.4 million ($45 million at June 2016).
The value of net tangible assets/share at interim balance date was unchanged from June at $1.17 (June 2016: $1.17).

Precinct 2017 interim report

Related stories:
17 February 2017: Precinct buys into co-workspace specialist Generator
DLA Piper signs for Commercial Bay
21 December 2016: Precinct’s QE Square purchase unconditional

Attribution: Company release.

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Caltex site on Fanshawe St sells

A Fanshawe St site which Z Energy Ltd said was too valuable to be a petrol station has, indeed, been sold for over 4 times its valuation as a Caltex service station.

The site was among 10 former Caltex outlets with retailers installed on short-term contracts when Z Energy took over Chevron NZ Ltd’s Caltex & Challenge brands, and is the first of the 10 to have its future decided.

Z Energy got a valuation of $5 million on it as a service station and has sold it through a Colliers tender for $23.274 million.

The pumps, across the road from Victoria Park on the edge of the Wynyard Quarter, closed at the start of August. New office developments are rising on 2 sides of it.



Wynyard Quarter

155-167 Fanshawe St:
Features: 3879m², former Caltex service station site
Outcome: sold for $23.274 million
Agents: Colliers capital markets team



Queen St

260 Queen St:
Features: 90m², commercial premises, leased to Love My Makeup Ltd by McDonalds Restaurants Ltd
Rent: $235,000/year gross + gst
Agent: Nilesh Patel

Isthmus east

Mt Wellington

5 Tiri Place:
Features: 1160m² industrial property, lessor Tiri Partnership Ltd, lessee SKU Ltd, lease term including renewals 6 months
Rent: $52,200
Agents: Ben Herlihy, Dwayne Warby & Todd Kuzmich



6 Tawa Drive:
Features: 2095m² industrial premises leased to Auckland City Couriers Ltd – warehouse 1133.7m², mezzanine 550m², office 412m², hardstand container loading area
Rent: $232,000/year
Agents: Ryan de Zwart, Matt Prentice & Hamish West


18A & B David McCathie Place:
Features: 2199m² office & warehouse, leased to Masons Plastabricks Ltd
Rent: $222,500/year
Agents: Ryan de Zwart, Matt Prentice & Shoneet Chand


East Tamaki

331B East Tamaki Rd:
Features: 840m² industrial property, lessor GLT Properties Ltd, lessee Nexus Foams Ltd, lease term 3 years, 3 3-year rights of renewal
Rent: $13,333.33 net
Agents: Jolyon Thomson, Hamish West & Paul Higgins

Earlier story:
31 August 2016: Fanshawe St site ‘too valuable for a petrol station’

Attribution: Agency release.

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Z Energy seeks $350 million in 2 bond series

Z Energy Ltd announced an offer of up to $350 million of unsubordinated, secured, fixed-rate bonds in 2 series on Friday.

The 2 series are 5-year & 7-year bonds – $250 million in a general offer to New Zealand retail & institutional investors and $100 million in an exchange offer to New Zealand holders of Z’s 2016 bonds, which expire on 15 October.

Z said it would use the proceeds to refinance an existing tranche of bonds which mature on 15 October and to repay some of the bank debt associated with the acquisition of the Chevron NZ business. The company said its net debt position wouldn’t increase.

The outcome of the general offer bookbuild process will determine what’s available in each series under the exchange offer. If the takeup under the exchange offer falls short, Z may offer those bonds under the general offer. The exchange offer is expected to close on 14 October 2016 and the general offer on 28 October.

The 2 bond series:

  • 2021 bonds, maturity 1 November 2021, indicative margin range above the 5-year base rate 1.75-1.85%/year; the interest rate will be no lower than 3.95%/year, and
  • 2023 bonds, maturity 1 November 2023, indicative margin range above the 7-year base rate 1.85-1.95%/year; the interest rate will be no lower than 4.2%/year.

Z will announce the interest rate for each series following the bookbuild process, which is expected to be completed on Friday 7. Z has applied to list the bonds on the NZX debt market.

There’s no public pool.

Integration process

Z’s tender for the sale of the Caltex service station on Fanshawe St, across the road from Victoria Park on the edge of the Wynyard Quarter, closes on Wednesday 12 October.

Z is working through a process to determine the ownership structure for 9 other Chevron sites which are company-owned, independent retailer-operated, and has given notice to the first one to convert to the Z operating model in the second quarter of 2019. If the decision on others is to convert, they’ll be given until the third quarter of 2019.

Z is still analysing the results of its 6-week discovery process to understand the combined business, identify further synergies and how to realise any extra value. It expects to provide an update on the preliminary analysis at the company’s investor day on Wednesday 19 October. Synergies so far are in the middle of its $250-30 million guided range.

Terms sheet

Earlier stories:
31 August 2016: Fanshawe St site ‘too valuable for a petrol station’
29 April 2016: Commission clears Z Energy to acquire Chevron subject to divestments

Attribution: Company release.

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New Kea unit sale follows 6 sales & 5 leases for Colliers agents

A roadfront unit (pictured) in a new Kea Property development on Ellice Rd, at the top of the Wairau Valley, was sold for a snip under a 5% yield at Colliers’ auction yesterday. Colliers agents have sold another 6 properties from East Tamaki to Queenstown recently and signed 5 leases, all but one in Auckland.



Wairau Valley

89 Ellice Rd, unit 1D:
Features: 341m² roadfront unit in 35-unit development by Kea Property Group Ltd – office 205m², warehouse/manufacturing 118m², mezzanine 18m², 9 parking spaces
Rent: $74,000/year net + gst from 4-year lease to City Electrical Ltd signed in June, 3 4-year rights of renewal
Outcome: sold at auction yesterday for $1.482 million at a 4.99% yield
Agents: Euan Stratton & Sean Finnegan


East Tamaki

4 Averton Place:
Features: cross-lease, half share in 2000m², 605m² vacant clearspan warehouse
Outcome: listed for auction on 7 September, sold prior to an owner-occupier for $1.121 million
Agents: Jolyon Thomson & Todd Kuzmich

South of the Bombays

Bay of Plenty

Mt Maunganui

15 Newton St:
Features: 1019m² site, 550m² building
Outcome: sold at auction for $1.35 million at a 4.79% yield
Agents: Simon Clark & Rob Schoeser



75 Snell St:
Features: 1.55ha site. 2430m² industrial building,
Outcome: sold at auction for $4.255 million at a 6.94% yield
Agents: Alan Pracy & Justin Oliver



238 Thorndon Quay:
Features: 887m² site, 810m² 2-level retail & office building
Outcome: sold for $3.13 million at a 7.37% yield
Agents: Rex Fowler, Sam McIlroy & Georgina Young

240 Thorndon Quay:
Features: 769m² site, 850m² 2-level retail & office building
Outcome: sold for $2.2 million
Agents: Rex Fowler & Sam McIlroy

South Island


12 Industrial Lane:
Features: 430m² office & warehouse,
Outcome: sold for $1.08 million at a 6.48% yield
Agents: Mary-Jo Hudson & Rory O’Donnell



Wynyard Quarter

VXV3 building:
Features: 3080m² new commercial building developed by Goodman Property Trust, plus signage, leased to IBM NZ Ltd
Agents: Rob Bird, Paul Dyson & Chris Palmer

Isthmus east


120 Captain Springs Rd:
Features: 1483m² industrial property, leased to Legacy Construction Ltd by 777 Investments Ltd (Rolf & Belinda Masfen) for a 5-year term
Agent: Ash Vincent


Manu industrial estate, 9 Manu St, building 6:
Features: 3625m² building in an estate developed by James Kirkpatrick Group Ltd – warehouse 3495m², office 130m², canopy 130m², yard 500m², 8-year lease
Agents: Ben Herlihy, Hamish West & Chris Palmer



20C Timberly Rd:
Features: 5432m² warehouse & office developed by Goodman Property Trust, leased to Hellmann Worldwide Logistics Ltd
Agents: Brad Johnston & Paul Jarvie

South of the Bombays


205 Victoria St:
Features: 780m² ground floor, 7 parking spaces, leased to Forest & Bird Society for Anaro Investments Ltd
Agents: Sam McIlroy & Jeremy Langford

Attribution: Agency release.

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Goodman sells Christchurch package on top of Fanshawe St lease confirmation & Henderson project

Image above: Aerial view of the new industrial estate on the Alloy Yachts site at Henderson.

Goodman Property Trust has sold a package of industrial & office assets in Christchurch for $47.1 million.

That announcement today follows confirmation yesterday that Auckland Transport will lease the VXV20 building (ex-Vodafone building) on the corner of Halsey & Fanshawe Sts in the Wynyard Quarter, and a third announcement that the trust has acquired the former Alloy Yachts premises & an adjoining industrial property in Henderson for $18.9 million.

Trust manager Goodman (NZ) Ltd’s chief executive, John Dakin, said the Christchurch sale was to a private local investor and included the Southpark industrial estate in Middleton and 2 assets in the Show Place office park in Addington.

Mr Dakin said: “We’ve continued to take advantage of the strong investment market, with asset sales providing the balance sheet capacity for future acquisition & development opportunities. It’s a deliberate strategy that is reweighting the portfolio toward the favoured Auckland industrial sector.”

The Show Place component of the sale includes the 3800m² building leased to Ngai Tahu and an adjoining development site used for parking. The unconditional sale at a 7.7% yield is expected to settle on 30 September.

Wynyard Quarter

Auckland Transport’s intention to lease the VXV20 building was announced in May. Mr Dakin said the 6-storey 14,085m² office building would be extensively refurbished before the new 9-year lease starts in November 2017.

Mr Dakin said: “Securing a new customer commitment 7 months ahead of the expiry of the Vodafone tenancy is a great result for the business. It’s an iconic building in a superb location and we will be upgrading the office areas & building services to provide Auckland Transport with a modern & efficient work environment for its 1600 staff.”

The 12-year-old is owned by Wynyard Precinct Holdings Ltd, a 51:49 joint venture between the Goodman Property Trust and the Singaporean sovereign wealth fund GIC. Vodafone’s lease on it expires in April 2017 and it’s decided to move its whole Auckland corporate workforce into one building at Smales Farm, Takapuna.

Henderson reconfiguration

In Henderson, the 2 industrial properties Goodman has bought are on the corner of Selwood Rd & The Concourse. The 2 former boatbuilding premises have about 22,120m² of high volume warehouse space & 1250m² of associated office.

Mr Dakin said: “Acquiring the former Alloy Yachts premises & the neighbouring site, and amalgamating them into a single 4ha estate, provides the Goodman trust with a strategic opportunity in the rapidly developing West Auckland industrial market. Close to the cbd and with direct access to State Highway 16 from the Lincoln Rd interchange, this property will become one of Auckland’s best located industrial estates when the western ring route completes in 2017.”

The vacant warehouse buildings will be refurbished & reconfigured. Mr Dakin said that, fully leased, they were expected to generate a passing yield of about 7%. With significant yard areas & associated land, the estate also offered further development opportunity.

The acquisition remains conditional on Overseas Investment Office consent.

Earlier stories:
18 May 2016: Auckland Transport signs up to lease Vodafone building
11 February 2016: Goodman buys Panmure development site
28 August 2015: Goodman puts 5 Christchurch buildings on market
27 March 2015: Fletcher & Goodman sign up for new Wynyard Quarter building
7 November 2014: GIC buys into Goodman waterfront partnership

Attribution: Company releases.

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Fanshawe St site ‘too valuable for a petrol station’

Z Energy Ltd reckons it can make at least 4 times as many millions out of selling the Caltex service station site on Fanshawe St in downtown Auckland as its maximum valuation if it carries on selling petrol.

Petrol sales stopped 4 weeks ago and the pumps have been removed, but a convenience store & Subway franchise remain open on the site, across the road from Victoria Park on the edge of the Wynyard Quarter, with new office development occurring on 2 sides.

Z is looking at a sale process, and said in its monthly report yesterday on integration of Chevron NZ Ltd’s Caltex & Challenge brands with Z: “Given the location of the site and the absence of other freehold land in the area, Z expects to be able to sell the property to any number of developers for more than $20 million, which is supported by an independent valuation. For use as a service station, the site can only justify a valuation of $5 million, making it economically sensible for Z to divest the property rather than invest in the current earnings stream.

“The sale of this property will be a one-off cash inflow and will not be counted as a synergy. The proceeds will be used to repay debt.”

Z Energy Ltd signed an agreement with a subsidiary of US energy giant Chevron Corp in June last year to acquire 100% of Chevron NZ for $785 million in cash.

Retailers owned & operated all the Caltex service stations except for 10 which Chevron owned, with retailers installed on short-term contracts. The Fanshawe St property is the first of those 10 to have its future decided.

Z said it was working through a process of deciding the optimal ownership structure for the other 9 – Z or independent.

Z Energy August integration report

Earlier stories:
29 April 2016: Commission clears Z Energy to acquire Chevron subject to divestments
29 September 2015: Super fund sells down and Infratil sells out of Z Energy
3 June 2015: Z Energy buys Caltex

Attribution: Company release.

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Hawkins & China Construction in joint venture to build Park Hyatt on Viaduct Basin

Hawkins Group Ltd & China Construction NZ Ltd signed the contract with Fu Wah International Group this week to deliver the Park Hyatt Auckland hotel in the Wynyard Quarter through a joint venture.

Hawkins is local, China Construction (China State Construction Engineering Corp Ltd) is headquartered in Shanghai and listed on the stock exchange there, and Fu Wah is based in Beijing.

The 7-storey hotel on the former Team NZ site fronting the Viaduct Basin will have a total floor area of 29,000m², 195 rooms, food & beverage outlets, event spaces, a spa and a fitness centre that includes a 25m pool.

Work is due to start this month for completion in late 2018.

Precinct Properties’ Wynyard Quarter map showing the new hotel site on the right and its own development in the centre

Precinct Properties’ Wynyard Quarter map showing the new hotel site on the right and its own development in the centre.

Fu Wah NZ Ltd general manager Richard Aitken, who moved from Auckland Council’s Panuku Development Auckland (the landowner) to head the project, said: “Hawkins’ experience & understanding of the Auckland waterfront environment, including the challenging ground & climate conditions, will help to successfully guide this project. Together with China Construction, they have the resources, experience & skills to deliver an outstanding outcome for Auckland.”

Hawkins built the ANZ Viaduct Events Centre and is building the ASB Theatre, working on streetscaping throughout the Wynyard Quarter and on the Precinct Properties NZ Ltd Innovation Precinct project in Madden St.

China Construction is one of the world’s biggest construction businesses, with $US100 billion annual construction turnover. It ranks 37th in the current Fortune Global 500 and has built similar luxury hotels around the world.

The project will involve advanced building information modelling and input from Auckland-based Bossley Architects, Singapore-based AR+D Studio and interior designers Conran + Partners.

Links: China Construction
Fu Wah Group
Hawkins Group
Precinct Properties Wynyard Quarter Innovation Precinct

Attribution: Hawkins release.

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Life church site sold for redevelopment

5 commercial property sales by Colliers agents include the Life church & convention centre at Airport Oaks, bought for redevelopment.


Isthmus east 


198 James Fletcher Drive:
Features: 8487m² site, 3850m² warehouse & office
Outcome: sold for $5.1 million at a 7.1% yield
Agents: Andrew Hooper & Dwayne Warby


Airport Oaks

110 Montgomerie Rd:
Features: 2.5ha Life church & convention centre
Outcome: sold & leased to a developer for $13.8 million
Agents: Josh Coburn, Paul Jarvie & Brad Johnston 

East Tamaki

20A Arwen Place:
Features: 1881m² industrial building – 1285m² high stud warehouse, 2 2-tonne gantry cranes & 4 full-height roller doors, 434m² of office on 2 levels, 162m² mezzanine storage, onsite parking
Outcome: sold for $2.771 million
Agents: Paul Higgins & Jolyon Thomson

15 Echelon Place:
Features: 6208m² site, 3628m² high-stud warehouse, 481m² office, 413m² canopy
Outcome: sold vacant in May for $8.5 million
Agents: Andrew Hooper & Greg Goldfinch

South of Bombays


30A Tainui St:
Features: 560m² commercial premises occupied by Evolve Fitness, a café with children’s play area and a beauty therapist
Rent: $90,000/year net + gst, new 9-year lease from settlement
Outcome: sold for $1.325 million at a 6.8% yield
Agents: Alan Pracy & Justin Oliver



Wynyard Quarter

139 Pakenham St:
Features: 1639m² leased to Mott MacDonald in reconfigured Mason Brothers heritage building, part of innovation precinct development by Precinct Properties NZ Ltd
Agents: Sam Gallagher, Matt Lamb & Josh Coburn


East Tamaki

8 Crooks Rd:
Features: 1530m² design/build office, showroom & warehouse leased to Daikin NZ for a 10-year term
Agents: Ben Herlihy & Jeremy Barnett

Attribution: Agency release.

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Auckland Transport signs up to lease Vodafone building

Auckland Transport has signed a heads of agreement to lease the Vodafone building on the corner of Fanshawe & Halsey Sts (address 20 Viaduct Harbour Avenue). The move, cutting the council organisation’s occupancy down from 19 buildings to 4, will be completed by November 2017.

The agreement, subject to further detail being agreed & documented in a lease, is expected to be completed by 31 May.

Vodafone’s lease expires in April 2017 and it’s decided to move its whole Auckland corporate workforce into one building at Smales Farm, Takapuna.

Auckland Transport’s chief financial officer, Richard Morris, said yesterday the Viaduct location would give Auckland Transport a cost-effective solution for its accommodation requirements, with expected savings of close to $1 million in the first year alone. It has multiple leases, some about to expire.

Mr Morris said the Fanshawe St building’s 14,000m² of open plan floorspace, spread over 6 levels, offered flexible & efficient workspaces: “It is not expensive compared to a new building or other existing offices in or around the cbd. We will be reducing our overall space requirements by around 2500m², as well as making savings in areas such as cleaning, electricity, IT & maintenance.”

Mr Morris said leasing rather than buying space reduced the organisation’s financial risk.

Auckland Transport will retain a presence in 3 smaller regional offices in the north, Manukau & Henderson, enabling teams with operational requirements, such as parking officers, to work in their local area.

The 12-year-old Vodafone building is owned by Wynyard Precinct Holdings Ltd, a 51:49 joint venture between the Goodman Property Trust and the Singaporean sovereign wealth fund GIC.

Earlier stories:
15 January 2016: $200 million spend to make a Vodafone-branded innovation precinct at Smales Farm
Propbd on Q W23Dec15 – Vodafone to move, Mercer sells division to manager, Daldy St unconditional, St Lukes sale, Novotel opens
27 March 2015: Fletcher & Goodman sign up for new Wynyard Quarter building
30 January 2015: Goodman’s GIC deal gets regulatory approval
16 November 2014: Mixed Goodman trust result moves focus to GIC
7 November 2014: GIC buys into Goodman waterfront partnership
7 November 2014: Goodman Group buys another Wynyard development block

Attribution: Auckland Transport release.

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