ANZ Bank NZ Ltd has agreed to lease about 6740m² of Kiwi Property Group Ltd’s No 1 Sylvia Park office development (pictured), now under construction.
Kiwi Property described Sylvia Park as the Sylvia Park town centre, which was the intention from the time the company bought the initial 24ha site beside the Southern Motorway at Mt Wellington in 1995 (back when the NZX-listed entity was a trust) and secured a plan change in 2001 that allowed for a business centre with a gross floor area of 148,000m², including a maximum 75,000m² for retail premises, entertainment facilities, taverns, cafés, restaurants & other eating places.
Kiwi’s plans then also included residential development, completing the town centre concept. In the intervening 17 years, however, it’s become New Zealand’s pre-eminent shopping mall.
ANZ, through subsidiary Arawata Assets Ltd, will take a 9-year lease over 5 whole floors & a partial floor, starting in 2 stages between June & December 2019 to suit the progressive relocation of bank staff into the building from a number of locations. ANZ has also secured exclusive naming & signage rights.
Kiwi Property chief executive Chris Gudgeon said yesterday: “Our vision for Sylvia Park is the creation of a world-class town centre, offering our customers exceptional retail, dining, entertainment & workplace experiences.
“ANZ taking this significant space in No 1 Sylvia Park reflects this transition to a town centre. Our ability to successfully lease over 10,000m² of office space in the building to major corporates such as ANZ & [insurance company] IAG NZ Ltd shows that the market is looking for such an offering. Our vision is now becoming reality.”
Mr Gudgeon said the new office building was being constructed to integrate seamlessly with the mall & The Grove Dining District, which opened last December.
“With a dedicated entrance, it offers businesses a truly unique & high quality working environment in an easily accessible location with excellent rail & bus transport links, allowing staff to take advantage of the extensive range of amenities & services at the centre.”
“ANZ & IAG, together with the ground-floor retailers, will occupy around 90% of the office building and, following ANZ’s full occupation in 2019, the project is expected to yield 7.4%, with a projected 10-year internal rate of return in excess of 9%.
“We look forward to welcoming ANZ to the building, joining approximately 350 IAG staff who will move into their new 3324m² office premises following completion of No 1 Sylvia Park in the middle of this year.”
“By year end, we will complete our new roughly 600-space shopper carpark building and the excitement will continue right through to mid-2020, when we complete our $223 million Galleria retail expansion project. This will take Sylvia Park to another level, featuring new international brands & concept stores, selected retailers from Sylvia Park’s current waiting list of specialty tenants, a 2-storey Farmers department store and a sophisticated new-generation, sophisticated dining precinct.”
Attribution: Kiwi Property release.