Mansons selling Telecom Headquarters
Overall, the economy is continuing to grow with considerable momentum and New Zealand is fast emerging as an investment destination of choice for both domestic and off-shore buyers.
This, combined with a lack of real purchasing opportunities in the current market, means the sale of two buildings within Telecom Place provides a unique prospect for investors - this opportunity to acquire some of the most highly specified, modern and sustainable assets in New Zealand’s leading commercial city is one not to be overlooked.
Property developers Mansons TCLM are, for the first time since their completion in 2010, broadly marketing in a public campaign buildings, A and C at Telecom Place, two of the four buildings that make up Telecom’s Headquarters in Auckland.
Jointly marketing the sale are exclusive agents, John Binning of JLL and Paul Hain of Bayleys, who are offering the separately titled buildings via a public international expressions of interest campaign closing at 4pm Wednesday 30th July 2014.
Telecom Place is situated in a prime position at 167 Victoria Street West, on the western fringe of the CBD. The area, known as Victoria Quarter, is seen as an extension to the vibrant Viaduct and is fast becoming a core location in its own right within the Auckland office market.
The area is popular with those occupiers requiring large floor plates in low to mid-rise buildings or simply desiring a more campus style office with a central location. Neighbouring occupiers in the precinct include Courier Post, Oracle and Kiwi Bank.
The buildings enjoy views over the Waitemata Harbour, Viaduct precinct and surrounds and sit within easy reach of the major transport links, the popular Victoria Park and Auckland’s lively city centre that provides an abundance of retail and entertainment options.
John Binning, Director of Capital Markets for JLL says: “Assets of this size and quality are rarely placed on the market and Telecom Place therefore allows investors to secure a foothold in the commercial heart of New Zealand at a time when real investment opportunities are scarce.” Binning continues, “The buildings provide a work environment that offers the highest level of amenity, connectivity and social interaction sought in today's workplaces.”
Two of the most recent additions to the Auckland office market; buildings A and C provide seven and six floors of contemporary, functional and highly sustainable office accommodation alongside communal retailing and basement car parking.
The floor plates are an average of 1,100 sq m up to 1,350 sq m, column free and benefit from excellent levels of natural light. The two interconnected freehold buildings are 100 percent leased to Telecom, New Zealand’s leading telecommunications and IT services provider, and offer weighted average lease terms (WALTs) of 10 years from 1 June 2014 - some of the longest WALTs in the market.
Paul Hain, Commercial Sales and Leasing Broker, Bayleys says: “Auckland infrastructure upgrades are underway and the plan to make Auckland the most liveable city is on track which, combined with low vacancy rates – currently sitting around 4% for A-grade property – make for a positive outlook.”
An independent initial evaluation procedure (IEP) indicates the building is of A+ seismic strength with a rating of over 100% of the New Building Standards (NBS). The designers, Warren and Mahoney in conjunction with Geyer, also worked within the parameters of Green Star, achieving a 5 Green Star Office Design rating from the New Zealand Green Building Council.
Hain continues: “In a world in which sustainability is of growing importance to both occupiers and investors, green buildings are a way to reduce investment risk through improved liquidity, reduced obsolescence and better tenant retention prospects.”
A number of sustainable technologies were implemented in the design to achieve the green rating including a building management system that monitors water and energy consumption, an integrated light-sensor system, 120,000 litre rain water tank that provides water to the toilets, low energy LED lighting in the atrium and T5 fluorescents throughout the remainder of the building.
The focus for Prime office space in Auckland has long been concentrated in the waterfront areas and these office precincts remain the emphasis for future supply with further development in the area underway. 151 Victoria Street West by Mansons is due to add 20,000 sqm of highly sustainable office and retail accommodation to the Victoria Quarter and further afield, in the Viaduct, Goodman has commenced the development of the new 12,000 sqm headquarters for Fonterra. These additions will further enhance this area and act as a draw for occupiers and consumers alike.