Archive | Waterfront

1 sells out of 2 at City Sales’ first auction for year

City Sales started the year with one apartment sold at auction today, the other attracting no bid.

The auction success was a leasehold unit on Princes Wharf, on the side nearest Hobson Wharf, where piling to extend that wharf began yesterday. It will continue between 7am-10pm daily.


Lorne St

Lorne St Lofts, 4 Lorne St, unit D:
Features: 38m² studio; building erected in late 1800s, rebuilt in brick in 1913, converted to apartments 1996; seismic rating given as 28% in council report, raised to 50% in engineer’s report supplied on auction day
Outgoings: rates $1396/year including gst; body corp levy $7624/year including gst
Income assessment: $440/week until 6 September
Outcome: no bid
Agents: Ryan Codlin & Kerry Aitken


Princes Wharf, 147 Quay St, shed 22, unit 9:
Features: leasehold, 72m² including deck, 1 bedroom
Outgoings: rates $1711/year including gst; body corp opex levy $7718/year + gst, ground rent $8951/year
Income assessment: $490/week, but sold with vacant possession
Outcome: sold for $210,000
Agents: Tony Kelly & Grant Elliott

Attribution: Auction.

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6-tenant O’Connell St retail package sells

Bayleys agents have sold 6 properties around the Auckland cbd & western fringe, including 6 retail tenancies in an O’Connell St building (pictured).


Learning Quarter

44 Anzac Ave, unit L6:
Features: vacant 173mnorth-facing office unit with decks; includes boardroom, multiple office areas, kitchen & utilities room plus 2 onsite parking spaces
Outcome: sold for $647,000 + gst (if any)
Ken Hu

O’Connell St

12-14 O’Connell St, units A, B & C:
Features: 6 ground-floor retail tenancies on 3 unit titles totalling 359m2; Proper Pizza occupies third of the space on 10-year lease from April 2018, other occupants include a Wishbone café, florist, chocolate shop & hair salon on 3- to 8-year leases
Rent: $333,490/year net + gst
Outcome: sold for $5.2 million at a 6.41% yield
Agents: Nicolas Ching, Beterly Pan & James Chan

Queen St:

396 Queen St, unit 9:
Features: 26m² retail unit next to Skybus ticket office & departure stop; beneath Sheraton Four Point Hotel currently being constructed within the tower (255 hotel rooms over 21 levels)
Outcome: sold for $600,000 at $23,077/m²
Agent: Millie Liang

Victoria Quarter

17-19 Nelson St:
Features: block of 20 fully leased parking spaces on individual titles in 4-level building; parks all have 9-year head lease to Tournament Parking Ltd with fixed annual 2% rental increases
Rent: $90,149/year net + gst
Outcome: sold for $1.98 million at a 4.55% yield
Agents: Alan Haydock & Damien Bullick


16 Viaduct Harbour Ave, level 5:
Features: leasehold, 448m² office floor; current 15-year lease until 2028 to Tramco Ltd, which undertook a major refurbishment in January 2017 and pays all outgoings including ground rent
Rent: $175,340 /year net + gst
Outcome: sold for $1.45 million at a 12.09% yield
Agents: Damien Bullick & Sunil Bhana

Isthmus west

Freemans Bay

70 College Hill:
Features: 298m² corner site, 127m² character villa offering commercial & residential options
Outcome: sold vacant for $1.45 million
Agents: Andrew Wallace & Cameron Melhuish

Attribution: Agency release.

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Council committee ignores point of waterfront stadium request: agreement to test feasibility

Proponents of a stadium on the Auckland waterfront laid out their plans for Auckland Council’s planning committee yesterday, including a long question-&-answer session.

Image above: The model showing the proposed stadium, on display during the consortium’s presentation.

It was an information session, mainly explaining the process the Auckland Waterfront Consortium wants to go through over the next 3 years, not a request for assistance or prelude to a consent process.

But there was a request, as legal representative Mike Sage outlined at the outset: “We’re here today to request the council to enter into an agreement with the consortium & the Crown to test the feasibility of the consortium’s proposal that Bledisloe Wharf & the basin between Bledisloe & Queen’s Wharves should be transformed into a breathtakingly & beautiful precinct.”

That request was sidelined during the following 90 minutes. After the committee asked its many questions, committee chair Chris Darby linked the proposal to other propositions & the overall need to masterplan that area of the waterfront, thanked the consortium members and they were on their way.

The consortium’s waterfront map.

How the council might meet the feasibility test request – or whether the Government had already agreed to participate – wasn’t discussed.

Like other major infrastructure proposals, such as a ports alliance & moving the port out of town, this one could easily drift out to sea unless the council is prodded more firmly.

Shortly before the session ended, Cllr Ross Clow protested that Cllr Darby appeared to be presupposing the consortium’s proposal would proceed: “What about Eden Park Trust Board coming with their presentation – we do a business case on the status quo?” he asked.

Cllr Darby said the council could integrate some of the ideas being tossed around when it begins its review of the city waterfront masterplan, which at the moment doesn’t include this section of the waterfront: “I’m actually saying there does need to be a plan of our waterfront,” he responded.

“There is a stadium study [withheld from Radio NZ for 5 months, and then released with large sections blacked out] that identifies a preferred location to be then tested against the incumbent, which is Eden Park. That work is clearly identified as work yet to be done.”

Cllr Darby said the council could consider “over the coming weeks” whether it wanted to embark on examining a masterplan for the waterfront right along to the Pt Erin baths.

The Bledisloe precinct & Eden Park redevelopment proposal

In tandem, the proposal for a 50,000-seat stadium sunk to the sea floor at the end of Bledisloe Wharf, with the ability to expand to 65,000 seats, would be combined with redevelopment of the hallowed Eden Park to build an estimated 2500 apartments.

The wharf itself would have an estimated 2500 apartments built on it, plus retail, hospitality, hotels, commercial space & public space.

The proponents presenting yesterday:
Dave Wigmore (The Property Strategists Ltd, overall)
Mike Sage (Simpson Grierson, legal & overall picture)
Richard Goldie (Peddle Thorp, architecture)

  • I’ll post committee questions in a second stadium item later today.

Livestream of committee agenda item
12 October 2018: Archimedia masterplan proposal for ports area
18 May 2018, Radio NZ on PWC downtown stadium feasibility report: No conclusion on downtown Auckland stadium in $1m report

Earlier story:
19 October 2018: Consortium releases waterfront stadium proposal details

Attribution: Council committee meeting.

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Wharf studio sells at auction

A leasehold Princes Wharf studio sold at Ray White City Apartments’ auction today, but the other 4 units on offer were all passed in. One of those was in a multi-offer as the auction ended.



Kiwi on Queen, 421 Queen St, unit 912:
Features: 52m², fully furnished 4 bedrooms
Outgoings: rates $1536/year including gst; body corp levy $6794/year including gst
Income assessment: $760/week, fixed until June 2019
Outcome: passed in at $482,000
Agents: Mitch Agnew & Ryan Bridgman

Victoria Quarter

Ascent, 149 Nelson St, unit 307:
Features: 42m², 2m² deck, one bedroom
Outgoings: rates $1091/year including gst; body corp levy $2298/year including gst
Income assessment: $390/week current
Outcome: passed in at $221,000
Agents: Dominic Worthington & Ady Huang


Princes Wharf, 139 Quay St, shed 20, unit 3:
Features: leasehold, 37m² studio, sliding panels to separate bed, deck
Outgoings: rates $1188/year including gst; opex, ground rent & rates total $18,950/year ($394.80/week), all including gst; opex $5212/year, ground rent $12,551/year; 97-year ground lease from 1999, now with 3%/year increases, next ground rent review 20139
Income assessment: $450/week, fixed until July 2019
Outcome: sold for $123,000
Agents: Dominic Worthington & Ady Huang

Isthmus east


Stonemason’s, 27 Falcon St, unit 1E:
Features: 41m², one bedroom, basement parking space; building has remediation issues
Outgoings: rates $1340/year including gst; body corp levy $3989/year including gst
Outcome: passed in at $410,000
Agents: Judi & Michelle Yurak

Isthmus west

St Marys Bay

The Ridge, 21 Hargreaves St, unit 5F:
Features: 73.2m², 11m² balcony, 2 bedrooms, 2 bathrooms, parking space
Outgoings: rates $1980/year including gst; body corp levy $5938/year including gst
Income assessment: $1855/week fully serviced & furnished, minimum one-week stay; $650-700/week long-term unfurnished; $750-795/week long-term furnished
Outcome: passed in after sole bid by vendor at $900,000
Agents: Krister Samuel & Steve King

Attribution: Auction.

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Consortium releases waterfront stadium proposal details

The proponents of a new waterfront stadium in Auckland released further details today of their proposal, and participants.

They said the proposal would enable to have a new stadium within 10 years at no cost to ratepayers or taxpayers.

Consortium members:

  • ENGEO Ltd – engineering
  • Jones Lang LaSalle – real estate feasibility & business case
  • Ernst & Young – economic impact & business case
  • Simpson Grierson – legal
  • Peddle Thorp – NZ-based architecture, masterplanning (Peddle Thorp has entered into a subcontract arrangement with HOK, international stadium architects based in the US)
  • Planning Focus Ltd (Alistair White) – resource management
  • Phil O’Reilly Design Ltd – initial concept & creative consultant
  • Rider Levett Bucknall Ltd – construction costs & project planning
  • The Property Strategists (Ltd (Dave Wigmore) – real estate feasibility
  • Buildmedia Ltd – architectural 3D visualisation imagery.

Key features of the waterfront stadium:

  • Delivered at no cost to the Auckland ratepayer or the New Zealand taxpayer, paid for by the allocation of development rights over the Bledisloe Quarter & Eden Park
  • A 50,000 seat (with the possibility to extend to 65,000), international standard, fully enclosed, multi-purpose stadium ─ suitable for entertainment, cultural events, field sports
  • Future-proofed, with media & digital entertainment functionality, and designed for acoustic containment
  • Ideally located at the single-most accessible location in Auckland, connected to the cbd public transport hub (trains, buses & ferries)
  • Presents virtually no physical barriers between the city & the harbour, “only an elegant low profile”
  • Features a floating roof form that complements the Waitemata Harbour & surrounding landscape
  • Potential to become an iconic, internationally significant destination architecture site
  • A commercially & functionally compelling replacement for Eden Park & Mt Smart Stadium – venues that are increasingly unfit for purpose and which have significant operational constraints
  • A key part of Brand Auckland & Brand NZ, highly visible from the water, from Quay St & from the air
  • Designed using accepted international best practice engineering & risk mitigation
  • Integrates accepted seismic design principles as well as recommendations from the Ministry for the Environment on rising sea levels, GNS tsunami modelling and Auckland Council inundation & civil defence studies
  • Incorporates appropriate measures to mitigate against all reasonable natural events
  • Doesn’t extend into the harbour beyond the northern tip of Bledisloe Wharf.

Key features of the Bledisloe Quarter:

  • 2500 inner city dwellings housing more than 6000 residents
  • Commercial area accommodating more than 6000 employees
  • Located on Bledisloe Wharf which is repurposed and developed as a mixed use precinct (public space, residential, retail, hospitality, hotels and commercial)
  • 360,000m² of mixed use development proposed with all carparking underground
  • Together, the new Bledisloe Quarter and Wynyard Quarter will bookend the Auckland waterfront with a clear and legible harbour city edge which is fully connected across its east/west axis.

Supporting points:

  • The Bledisloe Quarter, like the Wynyard Quarter, has public spaces to all edges and the northernmost tip features a large public green space
  • Public open space provision and development density are benchmarked from Wynyard Quarter
  • Clustered towards Quay St, the scale and urban form of Bledisloe Quarter ‘reimagine’ Britomart Point, which once defined the eastern edge of the city waterfront
  • Complements optimised future development of Ngati Whatua’s rail precinct land
  • Captain Cook & Marsden Wharves are removed to open up the Queens Wharf / Bledisloe basin (so that the net impact of the project on the seabed is negligible
  • Cruise ships are docked primarily between Queens & Princes Wharves, with an overflow facility in the Queens Wharf/Bledisloe basin.

Other factors:

  • Berthing of mega (350m-plus) cruise ships is at the northern edge of Bledisloe Wharf.
  • Predominantly separate areas for ferries & cruise ships enhance navigational safety.
  • Connects naturally into current & planned public transport infrastructure.
  • Creates opportunities for cultural & educational institutions focusing on the ocean & environment.
  • Will improve the adjacent marine environment through stormwater management.

Auckland Waterfront Consortium chair Dave Wigmore said: “We are a group of professionals who are deeply invested in our city and who understand the realities of a project of this scale & its regional & national significance.”

He said the consortium had spent 18 months working up its proposal, which included development of the multi-purpose, fully enclosed stadium, previously dubbed ‘The Crater’, sunk into the seabed alongside Bledisloe Wharf, the redevelopment of the wharf as a mixed use Bledisloe Quarter, and the redevelopment of Eden Park for residential use.

“We’ve talked to the Mayor’s office, key Ministers, local and central government organisations, Ports of Auckland and a range of other stakeholders, and are in the process of engaging with Ngati Whatua. The feedback from stakeholders so far has been overwhelmingly positive.”

Attribution: Consortium release.

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Sebel unit at Viaduct sells

Published 7 September 2018
A unit in the Sebel, overlooking the Viaduct Basin, was sold at City Sales’ auction on Wednesday. A student accommodation unit in Tetra House was passed in.


Learning Quarter

Tetra House, 85 Wakefield St, unit 1111:
Features: 39m², one bedroom, 2 bathrooms
Outgoings: rates $1246/year including gst; body corp levy $5259/year
Outcome: passed in
Agent: Dahui Chen


Sebel, 85 Customs St West, door 110 (unit 104):
Features: leasehold, 58m², furnished one bedroom, deck
Outgoings: rates $1698/year including gst; body corp levy $10,662/year + ground rent $5876/year
Outcome: sold for $231,500
Agent: Kerry Aitken

Attribution: Agency release.

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Quay St apartment sells, new Citizen unit & Te Atatu shops passed in

A waterfront apartment on Quay St sold at Bayleys’ auction today, but a new penthouse unit in Urban Collective Ltd (Kelly McEwan)’s The Citizen, across the road from Basque Park in Eden Terrace, attracted no bid.

A fully leases Te Atatu investment of 4 shops was also passed in.




148 Quay St, unit 6A:
Features: 111m², 2 bedrooms, 2 bathrooms, parking space
Outcome: sold for $1.6 million
Agents: Cheryl Regan

Isthmus west

Eden Terrace

The Citizen, 10-12 Exmouth St, unit 601W:
Features: 2m ceilings, 2 bedrooms, 2 living rooms, 2 bathrooms, full-width balcony, 2 parking spaces, 2 storage cupboards
Outcome: no bid
Agents: Julie Quinton & Ellie Prince



Te Atatu Peninsula

570 Te Atatu Rd:
Features: 1229m² site, 387m² total floor area, 4 separate shops, rear access, 18m height limit
Outgoings: body corp levy $5660/year
Rent: $89,893/year net + gst
Outcome: passed in at $2.085 million
Agents: Scott Kirk & James Were

Attribution: Auction.

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Princes Wharf apartment passed in

A Princes Wharf apartment was passed in at City Sales’ auction today after 2 offers from the one bidder.



Princes Wharf, 137 Quay St, shed 19, unit 20:
Features: leasehold, 108m², 2 bedrooms, 2 bathrooms, deck, parking space
Outgoings: rates $4192/year including gst; body corp opex levy $13,753/year including gst, ground rent $16,157/year, parking space licence to occupy $818/year
Outcome: passed in at $275,000
Agent: Zen Low

Attribution: Auction.

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Precinct Properties presents a long list of positives from development & in financial structure

Major commercial property owner – and nowadays developer – Precinct Properties NZ Ltd lifted its net profit after tax for the year to June by 57.2% to $254.9 million.

The NZX-listed company’s biggest project at the moment is the $1 billion Commercial Bay development, redeveloping the Downtown Shopping Centre site at the foot of Auckland’s central business district. It’s also developing Bowen Campus in Wellington and has completed developments in Auckland’s Wynyard Quarter.

Image above: The trio of buildings at the centre of Precinct Properties’ strong performance – the existing PwC Tower at right, the new PwC Tower under construction and the existing HSBC House at 1 Queen St, to be redeveloped into a hotel with office above.

Chief executive Scott Pritchard said yesterday Fletcher Building Ltd had provided revised completion dates at Commercial Bay of September 2019 for the retail & December 2019 for the new PwC Tower (across Albert St from the building currently called PwC Tower).

Precinct also announced its plans for 1 Queen St, sitting on the Quay St frontage of the redevelopment, to include a 244-room luxury hotel operated by the InterContinental Hotels Group (IHG) – see separate story.

9% revaluation gain

Mr Pritchard said the quality of Precinct’s portfolio had resulted in a $208.7 million (9%) portfolio revaluation gain to $2.5 billion.

Precinct Properties is the largest city centre real estate owner in New Zealand, and Mr Pritchard said it was committed to its long-term strategy as a city centre specialist.

“The last financial year has delivered another strong result for our business. As we move forward with our strategy, we progressed a number of initiatives and achieved key milestones during the year.

“We have continued to take an active management approach with our investment portfolio & our development pipeline, leveraging Precinct’s market position.”

“The long-term outlook for the Auckland market remains strong, with solid demand drivers for city centre real estate across the office, retail, hotel & residential markets.”

Mr Pritchard said the Wynyard Quarter & Bowen Campus also contributed to this growth, with works progressing well over the last 12 months.

The Precinct Properties precinct: From the ANZ Centre up Albert St, down to the waterfront via Commercial Bay where Precinct is developing the new PwC Tower across the street from the existing PwC Tower, and yesterday announced the redevelopment of 1 Queen St (at right) to contain a hotel with offices on the upper levels.  Other Precinct buildings in this precinct are Zurich House and the AMP Centre.

Commercial Bay update:

Precinct’s reinforced its vision & long-term commitment to the rejuvenation of the central city with the announcement of the $298 million development at 1 Queen St (currently HSBC House), which will include the hotel in the lower half of the building.

Commercial Bay, looking out between the Cloud & Princes Wharf.

This development has been designed to integrate seamlessly with Commercial Bay. Its upper floors will also be remodelled to contain high quality office space & unique food & beverage options, including a rooftop bar.

Commercial Bay & its retail wrap’s Customs St frontage yesterday.

Mr Pritchard said phase one of the Commercial Bay retail remained on schedule, with international powerhouse H&M opening its flagship 3800m² store fronting Customs St in a fortnight, on Thursday 30 August. Passersby have been able to watch H&M’s creation in the new lowrise building beside the 21 Queen St offices of Zurich House, as windows have started to be placed at lower levels of the 39-storey Commercial Bay tower at the corner of Customs & Albert Sts.

“This marks a significant milestone for the transformational development which is reinvigorating the heart of the central city,” Mr Prithcard said. “The superb 4-storey retail offering promises to be the country’s premier H&M destination.

“Phase 2 of the Commercial Bay retail & the new PwC Tower have revised estimated completion dates, following the confirmation of a completion programme from main contractor Fletcher Building Ltd.

The revised completion dates are September 2019 for the Commercial Bay retail & December 2019 the new PwC Tower.

“The programme provided by Fletcher Building has been independently reviewed by Precinct’s expert programmer, RCP, who confirm the revised dates are achievable, subject to the main contractor’s performance.

“Precinct remains confident with the provisions of its construction contract, which protect the business from losses due to contractor delay.

“While any delay in a project is disappointing, we believe Fletchers are maintaining a very high standard of quality during a very challenging period within the construction industry.”

Commercial Bay’s entrance on to Quay St.

The new timeframes also affect prospective tenants: “Precinct continues to work closely with retailers at Commercial Bay to communicate the revised occupation dates. For those occupiers coming into the new PwC office tower, all have lease terms which extend beyond the revised completion dates of the office tower.”

Mr Pritchard said Commercial Bay continued to achieve a good level of leasing enquiry. Precinct had secured retail commitments to 76% and office commitments to 78%: “The $1 billion Commercial Bay waterfront development & lifestyle district is destined to become Auckland’s newest shopping, dining & social hub, offering a vast range of food & beverage outlets.”

Precinct Properties
Precinct Properties annual report
Commercial Bay

Related stories today:
Precinct Properties presents a long list of positives from development & in financial structure
Precinct Properties valuations & profit up, debt low
The 1 Queen St redevelopment

Attribution: Company release.

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Precinct Properties valuations & profit up, debt low

Precinct Properties NZ Ltd increased its net profit after tax by 57.2% to $254.9 million (2017: $162.1 million) in the year to June. The quality of Precinct’s portfolio including its active development pipeline has resulted in a portfolio revaluation gain of $208.7 million, or 9.0%.

Image above: The trio of buildings at the centre of Precinct Properties’ strong performance – the existing PwC Tower at right, the new PwC Tower under construction and the existing HSBC House at 1 Queen St, to be redeveloped into a hotel with office above.

Net operating income (distributable earnings), which adjusts for a number of non-cash items, has increased by 2.5% to $76.6 million ($74.7 million). This equates to 6.32c/share, in line with guidance (2017: 6.17c/share).

Revenue growth of 3.6% was primarily due to the completion of Wynyard Quarter stage 1, which was partially offset by foregone income related to development activity and 10 Brandon St, Wellington. After allowing for these transactions & activity, on a like-for-like basis gross rental income was 3.7% higher. This growth has driven an uplift in NPI by 5.4% to $95.3 million ($90.4 million).

As at 30 June 2018, Precinct’s portfolio value increased to around $2.5 billion following the strong revaluation gain. Precinct’s net tangible assets/share were up 12.9% to $1.40 (2017: $1.24).

Chief executive Scott Pritchard said yesterday: “The last financial year has delivered another strong result for our business. As we moved forward with our strategy, we progressed a number of initiatives and achieved key milestones during the year. We have continued to take an active management approach with both our investment portfolio and our development pipeline, leveraging Precinct’s market position.”

Focusing on a number of capital management initiatives during the year has resulted in $250 million of capital raised through the completion of a convertible notes offer & bond issue. Precinct also sold a 50% interest in the ANZ Centre in Auckland and sold 10 Brandon St in Wellington. These assets totalled $191 million of capital recycled.

“At year end our investment portfolio has continued to benefit from strong occupier markets. Achieving a high overall portfolio occupancy of 99% at year end and weighted average lease term of 8.7 years demonstrates this. Our Auckland portfolio has performed particularly, well with occupancy sitting at 100%, reflecting demand for premium inner-city office space. In Wellington, we have also reduced vacancy.

“In both Auckland & Wellington, we have successfully leased major expiries well ahead of vacancy. At the AMP Centre in Auckland, the QBE expiry has been fully leased at a premium of 17% to previous rentals. At Aon Centre in Wellington, 3 floors have been leased on the former IAG tenancy, with 2 remaining floors becoming available in early 2019.”

Mr Pritchard said the Auckland hotel market was experiencing unprecedented levels of growth in demand, which is forecast to persist through further growth in tourism numbers until at least 2025: “While a number of new hotel projects have been announced in the last 24 months, the increase in supply is expected to still fall short of demand over the short term and reach equilibrium over the medium to long term. This is expected to underpin robust room and occupancy rates.”

Commercial Bay

Commercial Bay remains on track to deliver a yield on cost of 7.5% and an increased profit on cost of 41% (June 17: 31%) or $283 million. Based on current project metrics, there remains a further $100 million of unrecognised development profit expected to materialise on completion.

Bowen Campus

In Wellington, construction works have continued to progress well over the last 12 months. We have now completed the facade installation at Charles Fergusson Tower with on floor works continuing. All works are targeted for completion late December 2018.

At Bowen State Building we have completed the majority of the structural works for the building including the north and south shear walls. The façade is now 90% complete for the building, installed from Level 1 to 10. On floor works are also underway to all levels.

Occupation of Bowen State Building by New Zealand Defence Force is expected in Q3 2019.

Financial highlights:

  • Net profit after tax increased by 57.2% to $254.9 million ($162.1 million)
  • Net property income, up 5.4% to $95.3 million ($90.4 million)
  • Net operating income, up 2.5% to $76.6 million ($74.7 million)
  • Full-year dividend, up 3.6% to 5.8c/share (5.6c/share), representing a 100% payout ratio (under AFFO – adjusted funds from operations)
  • Property revaluation gain of $208.7 million – 9% ($77.5 million)
  • Net tangible assets/share, up 12.9% to $1.40 ($1.24)
  • Earnings guidance for the June 2019 financial year, net operating income of about 6.60c/share, dividend expected to increase by 3.4% to 6c/share

Capital management:

  • $191 million of asset sales, providing capacity for new projects
  • $250 million of non-bank funding secured
  • Post-balance date refinancing of $760 million bank debt facility
  • Strong financial position, gearing of 25.0% (25.1%); pro forma gearing reduced to 19.4% at balance date following asset sales

Commercial Bay:

  • Advancing retail commitments to 76% (46% at June 2017) and office commitments to 78% (2017: 66%)
  • Yield on cost unchanged at 7.5%, with an increased profit on cost following the revaluation of 41% (June 2017: 31%), or $283 million
  • Phase 1 of the retail remains on schedule, with H&M opening its flagship 3800m² store on Thursday 30 August
  • A revised completion programme has recently been provided.

Bowen Campus:

  • Charles Fergusson Tower on track for completion in December & occupation by Ministry of Primary Industries
  • Bowen State Building to be occupied by NZ Defence Force, with lease starting April 2019
  • Yield on cost of 7.0%+, with an increased profit to 18%.

Future development opportunities:

  • Design has advanced for Wynyard Quarter development stages 2, 3 & 4; Precinct anticipates the second stage of the development will start in the next 6 months
  • Building design & marketing underway for precommitment leasing for the remaining development land at Bowen Campus.

Investment portfolio:

  • Auckland fully leased
  • Occupancy of 99% (2017: 100%) and a weighted average lease term across the portfolio maintained at 8.7 years (2017: 8.7 years)
  • 41 lease transactions completed, encompassing over 21,900m² & 598 parking spaces
  • Strong demand for space, with QBE expiring floors leased ahead of vacancy and 3 floors of IAG expiry leased at Aon Centre, Wellington
  • Strong like-for-like income growth of 3.0% – Auckland up 3.1%, Wellington up 2.9%
  • Generator occupancy of 73%, well above expectations; with 75% (9500m²) of its space launched during the year, the Generator business recorded a loss, as anticipated for this trading-up period.

Precinct Properties
Precinct Properties annual report
Commercial Bay

Related stories today:
Precinct Properties presents a long list of positives from development & in financial structure
Precinct Properties valuations & profit up, debt low
The 1 Queen St redevelopment

Attribution: Company release.

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