The first of the 4 Spark City buildings on Victoria St West to sell when they were built in 2014, has been sold again by syndicator Augusta Capital Ltd.
It’s one of 4 transactions reported today by Bayleys. The others are a commercial unit in Conrad Properties Ltd’s new Victoria Residences development across the road from the SkyCity casino, a redeveloped & reconfigured office building in Grey Lynn and an apartment development site in Herne Bay.
Augusta bought what was then Building C at Telecom Place for $65.18 million at a 7.25% yield. The price has risen by just under $12 million and the yield has firmed from 7.25% to 6.9%. The new buyer is a fund managed from Singapore.
The building sold on Pollen St, Grey Lynn, was previously occupied by a printing company and has been transformed by Tim Wilson, of Triumph Capital and let to a mix of creative & technology tenants.
The third new development to sell is a small commercial unit on the ground floor of Conrad’s Victoria Residences, bought on the site of the former Palace Hotel, where the Chow brothers had intended to develop a highrise brothel. The 124-year-old hotel building was demolished in 2010 after walls started to crack when the basement was being dug out for the Chows’ development.
64 Federal St:
Features: new 16m² commercial unit on ground floor of the 25-level Victoria Residences, developed by Conrad Group Ltd opposite the Sky Tower; 6-year lease to Jango Food Ltd
Rent: $55,000/year net + gst
Outcome: sold for $950,000 at a 5.79% yield
Agent: Millie Liang
Corner Victoria St West & Dock St:
Features: 7495m² office building, part of the 4-building Spark City, 10-year lease to Spark NZ Trading Ltd until June 2024 plus 2 6-year rights of renewal; 5-star office design & built Green Building certifications, 73 basement parking spaces, shares large central atrium with the 3 other buildings also developed in 2014 by Mansons TCLM Ltd as head office campus for Telecom (now Spark)
Rent: $5,316,009 net + gst with annual 3% rental increases
Outcome: sold for $77 million, at a 6.9% yield, to SCORE+, a pan-Asian fund managed by Singapore-based SC Capital Pte Ltd by Victoria Dock Nominees joint venture, a property syndication fund managed by Augusta Funds Management Ltd
Agents: David Bayley & Paul Hain
20-22 Pollen St:
Features: 1960m² site, frontage also to Mackelvie St, former premises of printing company Gravitas Media Ltd, completely redeveloped & reconfigured 3-level office building plus 94 internal parking spaces; just over 4000m² of net lettable space leased to mix of predominantly creative & technology tenants, mostly on 6-8 year leases, at $435-$495/m²; vendor rental underwrite on 2 tenancy spaces yet to be leased
Rent: $2,176,795/year net + gst
Outcome: sold by Triumph Capital (Tim Wilson) for $37,857,304 to Europe-based investor at a 5.75% yield
Agents: Chris Bayley & Lloyd Budd (Bayleys) with Tim McEnallay (Venncap Sydney) acting as a consultant to the buyer
32 Shelly Beach Rd:
Features: 746m² site zoned terraced housing & apartment buildings, with concept plan by Paul Brown Architects for 9 apartments, including penthouse, resource consent application submitted to activate this; 5-bedroom villa provides holding income of $1200/week
Outcome: sold for $2.78 million
Agents: Scott Kirk & James Were
26 January 2015: Victoria Residences & St James Suites set new price points
23 January 2015: Almost-brothel site among 14 year-end sales
10 November 2014: 3 remaining Spark City buildings sold
3 October 2014: Augusta settles Telecom Place purchase, syndication nears completion
28 August 2014: K Rd building sells at 8%, Telecom Place building 3 at 7.25%
28 April 2014: Chow brothers put brothel site on market
Attribution: Agency release.