Property Investment Blog

All Posts

$NZ681m development for central Auckland

home_investmentPrecinct Properties will go ahead with a planned $NZ681 million ($A630.79 million) development in downtown Auckland, including a 39-storey waterfront office tower and retail centre.

The Auckland-based company's development will encompass Precinct's four buildings in the surrounding area, which it anticipates will be worth about $NZ1.5 billion on completion, it said.

Precinct acquired the downtown site for $NZ91.3m, has spent $NZ16.3m in design and consulting fees, and expects to spend a further $NZ573.4m building the project it has dubbed Commercial Bay.

Accounting firm PwC will be the anchor tenant for the office tower, which has 52 per cent pre-commitment with four other businesses as foundation clients, Precinct said.

Retail leasing has started, and the company said it's in talks with a number of potential tenants for the flagship stores.

"The Commercial Bay project is consistent with the company's long term strategy of maximising value through concentrated ownership of prime assets in strategic locations," chief executive Scott Pritchard said.

Precinct has been shifting its portfolio to Auckland, including a development in the city's Wynyard quarter.

Fletcher Building has been hired for the Commercial Bay development, with work expected to start in June next year, including construction of tunnels under the precinct for the city's rail link.

The retail centre is expected to open by October 2018, with the office tower completed by mid-2019.

Precinct raised $NZ174.1m in March to help fund major developments.

Precinct shares gained 0.4 per cent to $NZ1.255, and have advanced 5.9 per cent this year.

 

Real Estate Investar Editor
Real Estate Investar Editor
Real Estate Investar provides intelligent software, tools and data to help you save time and make money in the residential property investment market.

Related Posts

[On-Demand Webinar] How to Find Affordable Capital Growth Properties

Most investors are either priced out of inner or middle ring capital city suburbs or have to resort to sacrificing their lifestyle to be able to afford the out-of-pocket holding costs. Join us for this live webinar and learn how to find and analyse affordable gentrifying areas which are primed to support solid sustained medium to long-term capital growth.

RBNZ Announcement - 13 November 2019

Reserve Bank of New Zealand Announcement - 13 November 2019

[On-Demand Webinar] How to Find Positive Cash Flow Properties

Learn how to find and analyse positively geared investment properties In this webinar replay, you will learn how to find property that will pay for itself, assist with finance serviceability and provide income regardless of what's happening in the property market.