Shining jewel in rapidly rising precinct

10:14 AM Saturday September 27, 2014 Colin Taylor

The building is home to Grant Thornton, Air New Zealand, Allianz, Stephenson & Turner, and EMC Corporation.

The high-profile Grant Thornton House at 152 Fanshawe St, opposite Victoria Park as well as the site of the new Fonterra head office building in the Wynyard Quarter, has been put on the market for sale by sole agency JLL.

"This property represents a prime opportunity to gain access to asector of the commercial property market that is set to see significant value growth over the long term," says Nick Hargreaves, JLL managing director.

Hargreaves is offering the building for sale on behalf of Townscape Halsey Investments Limited via an expressions of interest campaign closing Friday, October 31.

"This quality building, completed in 2007 and designed by Architectus, occupies a prominent corner position on the main arterial of Fanshawe St and Halsey St in Auckland's CBD fringe and benefits from high exposure and accessibility to passing vehicle and foot traffic," he says.

The five-level building has a total net lettable area of 6700sq m with average floor plates of 1500sq m, allowing for flexibility in space planning and suitable for single use or as multi-let floors.

It also has 70 secure, ground-level, covered carpark spaces. The property generates passing rent totalling $2,680,000 a year and has a 150-year ground lease with the first 15 years prepaid. It is currently fully occupied by high quality corporate tenants including Grant Thornton, Stephenson & Turner, EMC Corporation, Allianz and Air New Zealand.

Hargreaves says the property offers a well located commercial development in an evolving commercial precinct with excellent access to the CBD and major public transport networks. "This is the part of the city where the vast majority of investor and tenant interest is now focused, as evidenced by significant sales and development activity in the precinct."

Grant Thornton House sits within this growth node next to the Vodafone Building and directly opposite Goodman's Fonterra headquarters development.

Also situated nearby is the recently transacted Telecom Buildings complex and Precinct's developments in the Wynyard Quarter.

"The quality of the current development pipeline continues to strengthen the area as an office location," Hargreaves says. "We are likely to continue to see tenants relocating from the CBD core and city fringe to the Victoria Quarter with its excellent access and seaward aspect."

Justin Kean, national director of research for JLL, says the agency is forecasting Grade A rental growth to exceed 20 per cent between now and 2017, meaning that newly constructed buildings such as Grant Thornton House are well positioned to take advantage of the anticipated value uplift.

"JLL is aware of four proposed office developments within 300 metres of the site," Kean says. "While these will provide for future growing tenant demand in the area, their completion is at least three years away, for the most part."