CBRE: Auckland’s largest CBD office transaction in 2 years

27 April 2012

CBRE concludes Auckland’s largest CBD office transaction in two years

Auckland, 27 April 2012 - The Beca House office building at 21 Pitt Street in Auckland has been sold for NZ$55 million in the city’s largest single office transaction in two years.

CBRE’s Warren Hutt negotiated the off market sale of the 21 Pitt Street building on behalf Kiwi Income Property Trust.

The office tower was purchased by a New Zealand-based private investor in a deal which reflects an initial yield of 8.0%.

Mr Hutt said the deal signalled renewed interest in the NZ commercial market from local investors, with particularly strong demand for opportunities in the Auckland CBD.

“While investors are continuing to monitor the ongoing Eurozone debt crisis, the outlook for the domestic economy remains reasonably positive,” Mr Hutt said.

“NZ interest rates remain low and the major banks are continuing to be relatively aggressive in lending for property acquisitions, which has ensured that the current market sentiment remains upbeat. This has been underpinned by the positive outlook for the Auckland office market, given a lack of new supply and the continued decline in the CBD vacancy rate.”

Mr Hutt added that CBRE was currently fielding buyer interest from a mix of domestic and offshore investors, with European, Hong Kong and other Asian buyers continuing to seek opportunities in New Zealand.

“We’re also seeing strong interest from select European funds for assets priced in the vicinity of NZ$60 million, while Australian funds and other investors remain net sellers.”

Beca House is a 10-level office building with a net lettable area of 16,800sqm. The major tenant is Beca Corporate Holdings, which occupies over 14,400sqm of space on a nine-year lease which commenced in 2010.

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About CBRE Group,Inc.
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 firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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 Web site at www.cbre.com.

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