Victoria Quarter tower is a bankable asset
The newly refurbished seven level office tower for sale at 151 Victoria St West.
A newly refurbished seven level office tower fully leased to Kiwibank is for sale on a prominent corner position in the popular Victoria Quarter of Auckland City.
“The Victoria Quarter is now seen as an extension to the bustling Viaduct Harbour precinct and is fast becoming a core location in its own right,” says John Binning, director of capital markets at JLL, who is marketing the property via an expressions of interest campaign closing on Friday August 7.
Commonly called Kiwibank House, the building on a 1741 sq m freehold site 151 Victoria St West, dominates the corner with Hardinge St and contains 4777 sq m of net lettable space
Binning says this comprises mainly commercial office space with part retail on the ground floor. The property comes with 60 basement parking spaces and 15 onsite external car parking spaces.
“The area is characterised by a growing commercial presence particularly of low to mid rise purpose built office buildings,” says Binning.
The property is on northern alignment of Victoria Street West about 200 metres west of Nelson Street on the western fringe of Auckland’s CBD.
Since 1991 it has been tenanted by New Zealand Post Limited which occupies the entire building having signed a new lease in July 2013.
Binning says lease is for a net contract rental of $1,687,585 per annum plus GST and outgoings with a 2.75 per cent fixed annual increase, a weighted average lease term (WALT) of 7.08 years and a market yield of 6.84 per cent.
“Current outgoings are well below market levels at $57.74 per square metre which is considered beneficial to the tenant on a local occupancy basis.” he says.
The Victoria Quarter precinct is popular with occupiers requiring large floor plates in low to mid-rise buildings or seeking a more campus-styled office layout with a central location. “There is a definite emphasis on future supply in this area with further developments underway that will invigorate the precinct and act as a draw for consumers and occupiers,” Binning says.
Surrounding developments include Spark City (former Telecom House) building comprising of four interlocking green star commercial office buildings with ground floor retail; and the recently completed Oracle House at 162 Victoria Street West.
Directly adjoining the 151 Victoria St West is a Mansons TCLM owned site on which a building is under construction and is to be occupied by NZME later this year.
“Once completed, there will be around 20,000 sq m of highly sustainable office, retail and cafe style tenancies to the north of Kiwibank House - along with a pedestrian walkway and open air courtyard to the eastern periphery of the property,” Binning says.
Vehicle access to Kiwibank House is from Hardinge St along with pedestrian access to the lower ground level. The main pedestrian access to all office levels is via Victoria Street West which links Freemans Bay and Ponsonby to Queen St.
The surrounding properties comprise of medium intensity developments, predominantly commercial office buildings with retail on the ground floor, a Les Mills gym and childcare centre directly opposite the building to the other side of Victoria Street West.
“There are multiple cafes in Spark House, along Graham Street and Victoria Street West.” Binning says. “Carpark buildings nearby include 128-130 Fanshawe St, the Nelson Street carpark and the 72-100 Fanshawe St carpark.”
There is quick access within one kilometre of the property to and from the State Highway One and SH16 motorway network while Auckland’s main retail precinct is one kilometre to the west.
Binning says Kiwibank House is within easy walking distance Auckland CBD shops, Viaduct Harbour and the redeveloped Victoria Park Market.
“This sale represents an excellent opportunity to gain access to a sector of the commercial property market that is set to see significant growth over the long-term,” he says.
John Binning of JLL.