Published 17 June 2018, updated 20 June 2018:
Fisher Funds Management Ltd has sold the GroupM Building, at 22 Fanshawe St & the foot of Federal St in downtown Auckland, to the Conrad Properties Group Ltd for $50 million. Settlement is due on 30 November.
Update: The land size and Conrad’s stated intention have been added, and floorspace total corrected.
Harold McCracken of Savills brokered the transaction. The buyer, Conrad, is primarily an apartment tower developer but intends to hold the building as a long-term investment. It has Union & Co on Union St under construction at the top of the cbd, Queens Square under construction on Queen St just above Mayoral Drive, and has recently completed Park Residences between St Patrick’s Square & Albert St, and Victoria Residences across the street from the SkyCity casino.
The GroupM building, constructed on the 1283m² site in 1987 and originally occupied by law firm Kensington Swan, has a ground-floor café, column-free 610m² floorplates on 9 of the 11 office levels and slightly smaller floorplates on the top 2 floors, for a total 7796m². It has 51 parking spaces on 2 basement levels plus 15 at ground.
Advertising, marketing & media investment company GroupM Ltd signed a 5-year lease in October 2015 on 1200m² of the completely refurbished building, including naming & signage rights.
The building has been held by the Fisher Institutional Property Fund since Fisher Funds Management acquired Tower Investments Ltd from insurance company Tower Ltd in 2013.
Fisher Funds head of direct property, Brent Buchanan, said the funds manager had been steadily repositioning its $435 million retail, office & industrial portfolio to cater for growing demand in property assets from KiwiSaver & other investors. In the last year it’s completed over $30 million of development on existing assets and it’s investing another $80 million into its retail portfolio, particularly at Bayfair Shopping Centre in Mt Maunganui & Merivale Mall in Christchurch.
Mr Buchanan said the sale was “a continuation of the fund’s strategy to recycle capital out of older assets, and reweight the portfolio towards the industrial & retail sectors. With continuing Kiwisaver inflows, the fund is seeking to grow its investment portfolio”.
The Fisher Funds Institutional Fund has delivered an unleveraged total return of 11.78%/year over the last 5 years. “We are building on our successful track record with a major development programme and with capital to deploy in new opportunities. This is an exciting time for the fund.”
2 November 2015: GroupM gets naming rights on 22 Fanshawe
Attribution: Company release, leasing brochure.