Two Auckland CBD office buildings for sale in premium Quay Park precinct
Two modern office buildings in a prime Auckland CBD location are for sale as a premium investment opportunity with exceptional tenant covenants.
The properties at 8 Tangihua Street and 30 Mahuhu Crescent are situated at the heart of the Quay Park office precinct, between the main arterials of Quay Street and Beach Road.
This premium office location lies on the eastern fringe of the coveted Britomart precinct, which is a major transport hub as well as being hugely popular with office, retail and hospitality occupiers.
Both high-profile buildings were constructed in 2008 and have 4 Green Star ratings, representing best practice in sustainable design.
The Mahuhu Crescent property is fully occupied by the Bank of New Zealand, one of the country’s four largest banks, while the Tangihua Street property has a strong mix of professional services and finance tenants.
Together, the properties will return approximately $10 million in fully let net rental with potential for almost immediate rental upside upon securing new tenants for two vacancies.
The properties are being offered to the market by HIH Group – a German property company that manages more than 28.1 billion Euros (NZ$49.4b) of assets throughout the world.
HIH has exclusively appointed Colliers International to market the properties for sale via an expressions of interest campaign closing at 4pm (NZST) on Tuesday 3 December.
Richard Kirke, International Sales Director at Colliers, says it is a rare opportunity for a buyer to add two sought-after Auckland CBD office assets to their portfolio.
“These properties will have broad appeal to investors seeking to take advantage of Auckland’s unprecedented levels of economic and population growth, record infrastructure investment and a shortage of supply of commercial property.
“They are being offered to the market at a time of strong growth in the city centre, as new office developments shift Auckland’s commercial core further towards the waterfront.
“Demand for residential space has seen a significant amount of commercial office space being removed from the market around upper Queen and Symonds Streets.
“The amount of office space in these areas has dropped by 25 per cent over the last 12 years, while Britomart has seen a 272 per cent increase in space and Quay Park a 227 per cent increase.”
Peter Herdson, National Director of Capital Markets at Colliers, says the properties for sale are set to benefit greatly from their strategic location.
“They are a short walk to the Britomart Transport Centre, which is set to be transformed by the completion of the City Rail Link in 2024.
“The CRL is a 3.45km underground rail line and the single largest infrastructure project ever undertaken in New Zealand. It will turn Britomart into a two-way through station and greatly increase the capacity and frequency of trains in the city centre.
“The location also benefits from excellent motorway access, with routes in all directions available from the nearby Stanley Street interchange.
“All of these factors put the HIH office assets in a very strong position for capital and rental gains in coming years.”
Both properties boast large open plan floor plates providing tenants with flexible workplace options.
They also provide guaranteed income growth through fixed and market rent reviews across tenants in several leases.
The larger of the two buildings at 8 Tangihua Street has a net lettable area of 13,441sq m over seven floors, plus two basement car park levels providing 212 spaces.
It is currently undergoing an extensive $4 million capital works programme that is set to significantly improve and modernise the ground floor.
The works include a brand-new lobby and lift entrance, a digital building directory, a new board room, seating areas and state-of-the-art end of trip facilities.
The building is leased to professional services and finance tenants Fiserv, Gem Finance and Custom Fleet, along with a Lollipops childcare centre, F45 gym and Esquires cafe on the ground floor.
Two large vacant floors provide an opportunity for a new owner to realise upside almost immediately by securing new tenants.
Each office level has a central core providing access to the four lifts, internal stairwells and other facilities.
All floors feature multiple deck areas, with the largest deck area facing north with exceptional waterfront views.
The property at 30 Mahuhu Crescent is a five-level office building with three high-profile street frontages to Mahuhu Crescent, Tapora Street and Quay Street.
It has a net lettable area of 7,806sq m plus 133 car parks on the ground floor and three basement levels.
The ground floor features office space, 18 car parks and access to three lifts. The four office floors above are large, open plan spaces with all lifts and amenities situated in a central core of the building.
The property boasts exceptional north-facing waterfront views from all office levels.
Both properties benefit from excellent tenant covenants:
- BNZ (30 Mahuhu Crescent) was founded in 1861 and remains locally governed as part of the National Australia Bank group of companies. The bank employs over 5,000 people and has a network of over 180 retail stores across the country operating across a variety of financial services including retail, business and institutional.
- Fiserv (Level 6, 8 Tangihua Street) is a United States-headquartered multinational founded in 1984 that provides technology solutions to the financial world, including banks, credit unions, securities processing organisations and insurance companies.
- Gem Finance (Levels 3-4, 8 Tangihua Street), part of Latitude Financial Services, offers a range of products including personal loans, insurance, credit cards including Gem Visa, interest free and promotional retail finance. Latitude has more than 2.5 million customers across New Zealand and Australia and has long-term partnerships with major retailers.
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