Precinct Properties NZ Ltd committed yesterday to stage 2 of its Wynyard Quarter project, part of the wider Innovation Precinct on the Auckland waterfront.
Chief executive Scott Pritchard told the company’s annual meeting yesterday Precinct would develop the second stage, 10 Madden St, on an uncommitted basis. It will comprise a single-level basement & 7 upper levels, providing a net lettable area of 8290m², has an expected total project cost of $72 million and is expected to generate a yield on cost in excess of 7% once fully leased.
In a release out yesterday, Mr Pritchard said: “Committing to the development of stage 2 reflects an important step forward in the development of the wider Innovation Precinct and the creation of a thriving creative hub. We began construction of stage 1 in 2015 and we are excited to proceed with the next stage of the project’s evolution.
“Having developed the Mason Bros building during stage 1 on an uncommitted basis, we have confidence that the quality & location of this development will attract occupiers, with the majority of tenancies expected to be committed prior to completion. We are already seeing good levels of enquiry from businesses wanting to be located in the Innovation Precinct.
“Following stage 2, there are a further 2 sites which offer another 22,000m² of office space, which we expect to develop over the next 5-6 years.”
Sustainability is a leading principle of the Innovation Quarter’s design, and for stage 2 Precinct will be targeting a 5 star green design (office) & as-built star accreditation, and a 4.5 star NabersNZ whole building rating. The building will include end-of-trip facilities, with 12 electric vehicle charging units, and incorporate daylight-harvesting energy-efficient LED lighting. The rear side of the building will also feature a vertically planted green screen which will cover the open egress stairs.
Precinct will undertake the development in partnership with Auckland Council property arm Panuku Development Auckland. Hawkins Construction Ltd will be the main contractor under a fixed-price construction contract. Construction is expected to begin this month, and practical completion is programmed for the end of 2020.
Attribution: Company release, annual meeting.