An 1100m² central city corner – part of the site of the NZ Herald for over 150 years – has been sold for $31 million at a land value of $28,181/m².
Local development company Mansons TCLM Ltd settled the sale of the 1100m², at the corner of Albert & Wyndham Sts, to Australian company Pro-invest Developments Pty Ltd last week. The Sydney company is planning a 490-room dual-branded hotel development of about 37 levels on the site (pictured).
Bayleys senior broker Paul Hain in conjunction with the agency’s director of hotels, Nick Thompson, negotiated the sale.
Mr Hain said the transaction would enable a 22,500m² hotel building to be developed on the corner portion of the 4258m² former Herald site which Mansons originally put up for sale.
“While the sale agreement was negotiated last year, settlement was contingent on the issuing of a new standalone title for the land which Pro-Invest has purchased. This will now allow them to proceed with the construction of the hotel.”
Mansons confirms office plans for balance of site
All 15,000m² of the old Herald buildings have been demolished, and Mansons TCLM director Culum Manson confirmed the company intended to develop a lowrise large-format office building of 25-30,000m² on the remaining 3158m² of land, which also has frontage onto Mills Lane.
“We are currently in the design & resource consent planning phase for this building, which will be similar to our other recent office developments, with very large individual floor areas which are popular with tenants.”
The Herald vacated the property in 2015, when parent company NZME Ltd relocated all its Auckland media operations into a new office complex which Mansons developed on the corner of Victoria St West & Graham St.
$100 million of hotel sites sold or under contract
Mr Thompson said the sale was one of a number of Auckland cbd hotel development sites that
Bayleys’ hotel division has sold or has under contract at a total transaction value of over $100 million.
“We are receiving continuing enquiry from offshore investors for quality hotel development sites in Auckland in particular, with interest heightened by major forthcoming events such as the America’s Cup & APEC leaders’ summit.”
Pro-invest Development said last year the new hotel, which will have its main entrance off Wyndham St, would accommodate 2 InterContinental Hotels Group brands. It aims to have the Auckland hotel opened in 2020.
Managing director Tim Sherlock said there would be 290 Holiday Inn Express rooms on the lower levels and 200 EVEN hotel rooms on the upper levels, which Pro-invest would develop, own & manage under a franchise agreement with IHG.
EVEN Hotel Auckland will be the first for that brand outside North America, and also the first in Pro-invest Group’s plans for a portfolio of 10-15 EVEN Hotels in Australasia on behalf of the Pro-invest Australian Hospitality Opportunity Fund, in partnership with IHG.
Pro-invest Developments is part of Pro-invest Group, a boutique investment firm specialising in private equity real estate & real estate asset management.
IHG has developed the brand in response to what it says is a consumer shift toward holistic wellness – especially as it relates to travel. Features of the hotel include best-in-class fitness facilities, in-room exercise zones and nutritionally designed menus, with fresh & organic, ethically sourced foods.
IHG’s chief executive for Asia, the Middle East & Africa, Jan Smits, said wellness travel was a rapidly growing global phenomenon: “With EVEN Hotels, we have a created a brand that will deliver a local wellness experience to travellers for whom health & wellbeing is so important. I firmly believe that the EVEN Hotels brand will be a key driver in market share growth in New Zealand & Australia.”
Attribution: Agency release, company website.