Gary Groves of Sanctuary Group Ltd will lead a local syndicate’s conversion to student accommodation of the Fonterra Co-operative Group Ltd’s headquarters on Princes St (pictured), Auckland.
It’s one 3 large commercial property transactions completed by Bayleys agent Colin McKenna, with manager of the agency’s commercial investment team Robert Platt.
The other 2 are sale of the Real Groovy site just above Mayoral Drive on Queen St to Conrad Properties Ltd for the Queens Square apartment development, and sale of Gallery X – the former New Art Gallery on the corner of Lorne & Wellesley St East. The gallery deal was struck in September, when the price was confidential.
The 3 deals are worth about $85 million.
The Fonterra building at 9 Princes St has been sold by interests associated with German investor Farhad Vladi for $45 million.
The Real Groovy shop at 438 Queen St sits on about 2000m² and has been sold for about $13.8 million by the local family which has held it for decades. Conrad 226 freehold strata title apartments & 9 boutique shops planned for its development.
Gallery X, at 18-26 Wellesley St East, has been revamped by Metropolis developer Andrew Krukziener over the last 3 years and sold to a Chinese investor for about $25.4 million, at a yield believed to be under 6%.
The building was stripped out, small stores & a café opened on the ground floor and the upper 2 levels modernised.
Fonterra will leave its Princes St headquarters next year for a new development on the corner of Fanshawe & Halsey Sts in the Wynyard Quarter by Goodman Property Trust, which has since sold the development into a joint venture with Singaporean sovereign wealth fund GIC.
In another Wynyard Quarter move, Bayleys Real Estate will take its Auckland headquarters 200m along Viaduct Harbour Avenue next June to new purpose-built premises on the corner of Gaunt & Halsey Sts, occupying 3 levels of a 6-storey building being developed by the ASX-listed Goodman Group. The new Bayleys offices will be across the street from the Microsoft & Hewlett Packard Building and the Sofitel hotel.
Bayleys has negotiated signage & naming rights for the building, which will have 8813m² of commercial space & 883m² of ground-floor food & beverage-focused outlets. Bayleys will occupy 3525m² and 70 of the 247 parking spaces.
The company has taken a 12-year lease, with 2 6-year rights of renewal. A law firm will occupy level 3. Levels 4 & 5 haven’t been leased yet.
Attribution: Agency releases.