Auckland, 18 August 2014 - AECOM House, a landmark commercial building located in Auckland’s Quay Park precinct near Auckland’s waterfront, has been sold to Ngāti Whātua Ōrākei Whai Rawa Limited. The sale, conducted privately on behalf of Harbour 5 Limited, was assisted by CBRE and Colliers International.
Harbour 5 Limited, part of a family owned business which purchased the land in 2008, progressed the eight-level 5 Star Green Star Rated building in 2011 with the intention of holding the asset long-term. However when an opportunity arose for a negotiated sale with Ngāti Whātua Ōrākei Whai Rawa Limited; the directors felt this was an excellent prospect for both entities, the building’s tenants and the wider precinct in general.
Being able to conclude a divestment of this building to the underlying land owner and maintain long-term New Zealand ownership was certainly a key factor in the sale, said Brett Russell, Harbour 5 director. “We continue to retain other holdings in the precinct and see this transaction as a further positive step in our strong relationship with Ngāti Whātua Ōrākei Whai Rawa Limited.”
Ngarimu Blair, director Ngāti Whātua Ōrākei Whai Rawa Limited, which owns the underlying land noted that the building is a “high quality strategic asset. We are confident in Quay Park’s future as a key precinct within the Auckland CBD and we believe the acquisition of this building further reinforces our commitment to this area. This asset is our first step towards diversifying NWO’s commercial property portfolio away from either residential landholdings or ground lessors’ interests, and will provide a positive cash flow impact for our balance sheet.”
Brent McGregor, Senior Managing Director of CBRE New Zealand was involved with the property sale along with colleague Jonathan Ogg, with Peter Herdson and Andrew Reed of Colliers International. Peter Herdson, said the building offered a wide range of desirable attributes which contributed to an early sale and a yield of approximately 8%.
McGregor said the investment offered a strong income stream from a number of high quality commercial tenants, modern construction and a high profile location adjacent to the revitalised Britomart precinct. “With A-grade office buildings being tightly held, it is not surprising that AECOM House was acquired by the ground lessor.”
Completed in February 2013, AECOM House is a striking 12,992sqm building fronting Beach Rd and Mahuhu Cres, offering harbour views and ideally positioned for all public and private transport needs. It has been awarded a 5 Star Green Star Rating and offers large, highly efficient floor plates.
Global consulting firm AECOM occupies over 5,000sqm in the building, alongside other corporate tenants Fiserv, Zoetis and Spendvision; and retail tenants which include Subway, Mahuhu Café and Corporate Men’s Haircuts, generating total annual net passing income of around $5.4 million. The building has a weighted average lease term of six years.
Designed and built by Dominion Constructors Ltd with Woodhams, Meikle, Zhan Architects (WMZA), the building is the Auckland headquarters of professional technical and management consultancy AECOM. AECOM designed, engineered and project managed the internal fit-out of the company’s three floors to reflect its 95 year heritage in New Zealand, combined with its global expertise. The area’s nautical heritage is reflected in the building’s design, with the use of green glass representing the sea and granite inspired by Auckland’s volcanic cones.
About CBRE
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
