DNZ confirms purchase of development site between 2 of its Albany buildings

Published 22 October 2012

DNZ Property Fund Ltd has gone unconditional on a 1.4ha block of bare land between 2 bank buildings it owns at Albany.

The company has agreed to buy the land between 33 & 51 Corinthian Drive for $5.8 million. Settlement is scheduled for 16 January.

DNZ bought the office building at 51 Corinthian Drive, which was briefly the Zeald building, for $12.9 million in August. It already owned the 33 Corinthian Drive property, the ASB Centre.

The 3297m² 3-level office building (plus basement parking) at 51 Corinthian Drive will be fully occupied, and 76% leased to Westpac (NZ) Ltd under a new 9-year lease.

The building’s market value was written down from $6.7 million to zero in 2010, when it was a leasehold property owned by a joint venture company in breach of its banking covenants. It was the only building erected under the leasehold structure set up by Albany City Holdings (2006) Ltd, a joint venture between Symphony Group Ltd (later Pakenham Group Ltd, headed by Colin Reynolds) & Auguste Holdings Ltd (St Laurence Ltd directors Kevin Podmore & Mike O’Sullivan).

Albany City Holdings (2006) Ltd owned the building through Albany Partners Ltd & Albany City Property Investments Ltd. The immediate building owner, Albany City Property Investments, was liquidated followed termination of the company’s sub-leases by the lessor, Cornerstone Group Ltd, which in turn followed several months of court action culminating in the collapsing of all the leases on the Albany City Centre land.

Earlier stories:

28 September 2012: Goodman’s Orchard Park a 12ha office & light commercial precinct

13 August 2012:DNZ buys Corinthian Drive building, conditional on development site

12 September 2010: Albany City debacle demonstrates leasehold fragility

 

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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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