Former Mainzeal Hq Back On the Market For Sale

Media Release:
May 1, 2013

Former Mainzeal Hq Back On the Market For Sale

The former high-profile headquarters of failed construction firm Mainzeal has been placed back on the market for sale or lease.

The 2701 sq metre building on the corner of Victoria and Wellesley Streets is being marketed by Bayleys Auckland through salespeople Colin McKenna and Bill Fenton under the instructions of receivers PwC. Expressions of interest for either the sale or lease of 220 Victoria Street close on Thursday June 13.

With the departure of Mainzeal as lead tenant on the top three floors of the building, totalling 2120 square metres, outdoor equipment and clothing chain Kathmandu is now the sole tenant. Kathmandu occupies the retail premises on the ground-floor and has a six year lease term that commenced in June last year.

“The financial dynamics for this building are obviously far different now to what they were in December last year, and as such the potential buyer or leasee scope for the property has widened considerably,” Mr McKenna said.

“There is for example the potential to walk into the former Mainzeal premises and purchase all the fixtures, fittings and furniture, which are virtually brand new as Mainzeal only took up occupation of the commercial offices late in 2012.”

Auckland Council recently identified the building as a high-profile ‘gateway site’ into the CBD. The triangular-shape premises has vast street frontage at the traffic lights connecting Victoria St with Beaumont Quarter and Freemans Bay. Victoria Park is directly across the road. Permitted activities for the site include accommodation, office and retail space.

The building comes with 56 car parks. Amenities include a 14-person lift, secure bike parks, showers, and locker rooms. The building is built to spec’ for a five-star ‘greenstar’ rating. A number of initiatives were employed to achieve this standard - including replacement of the façade with a full-height double-glazed curtain wall system, and installation of an argon filled window glass to achieve a high level of solar-energy control.

Mr Fenton said all building services within the block were replaced in the 2012 refurbishment - including the central air cooled air-conditioning system, solar assisted hot water, low energy lighting (with both light sensitive and motion dimming control), electronic security and fire alarms.

A recent seismic rating for the property shows strength at 142 per cent of code, an A+ structural grade, which has proved attractive to investors or occupiers conscious of the flow-on effects of both bank lending and insurance coverage as a result of the Christchurch earthquakes.

“With the exit of Mainzeal, the permutations for a multiple-tenancy are now far greater – allowing for several smaller companies to lease out one floor each for example,” Mr Fenton said.

“Alternatively, the property could be purchased by an owner-occupier looking for a highly-visible naming rights location sitting at a pivotal access overlooking two busy CBD fringe roads, with the added benefit of an existing tenant generating rental income.”

Several high-profile leasing deals have been signed for office blocks in the immediate vicinity. Technology company Oracle NZ and credit card transaction business Paymark have both leased floor space at 162 Victoria Street just a few hundred metres from the former Mainzeal building.

“As businesses locate to the CBD-fringe, properties such as the former Mainzeal House are becoming more sought after – particularly those with high earthquake compliance ratings, and even more so for modern, energy-efficient workplaces,” Mr Fenton said.

ENDS

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