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News Release

Auckland

Prime office asset for sale in Victoria Quarter


 

 

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​​Grant Thornton House at 152 Fanshawe Street is being marketed for sale by sole agency JLL. The property represents a prime opportunity to gain access to a sector of the commercial property market set to see significant value growth over the long term. Nick Hargreaves, Managing Director for JLL is offering the building for sale on behalf of Townscape Halsey Investments Limited via an expressions of interest campaign closing Friday, 31st October, 2014.
This quality building, completed in 2007 and designed by Architectus, occupies the prominent corner position of Fanshawe and Halsey Street in Auckland’s CBD Fringe and benefits from high exposure and accessibility to passing vehicle and foot traffic. Providing a total net lettable area of 6,700sqm, the building is five levels with average floor plates of 1,500sqm which allow for flexibility in space planning and are suitable for single use or multi-let floors. There is also 70 secure ground level covered car parking spaces.
The property has a 150 year ground lease with the first 15 years prepaid. The building is currently fully occupied by high quality corporate tenants including Grant Thornton, Stephenson & Turner, EMC Corporation, Allianz and Air New Zealand. The passing rent totals $2,680,000 per annum.
Nick Hargreaves, Managing Director for JLL 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 part of the city is where the vast majority of investor and tenant interest is focussing, and there are significant sales and development activity occurring in this precinct.”
Grant Thornton House sits within this growth node next to the Vodafone Building and directly opposite Goodman’s Fonterra headquarters development. Also situated in close proximity of this property are the Telecom Buildings which was recently transacted and Precinct’s developments in the Wynyard Quarter.
Hargreaves continues, “The quality of the current development pipeline continues to strengthen the area as an office location. We are likely to continue to see tenants relocating from the CBD core and Fringe to the Victoria Quarter with its excellent access and seaward aspect.”
Justin Kean, National Director of Research for JLL says, “JLL is forecasting Grade A rental growth to exceed 20% between now and 2017 meaning that newly constructed buildings such as this are well positioned to take advantage of this value uplift. JLL is aware of 4 proposed office developments within 300 metres of the site. These will provide for growing tenant demand in the area however are for the most part at least 3 years away.”
Office vacancy in the Auckland region is a record lows and it is expected the remaining space in the Prime segment of the market will be quickly absorbed over the short-term with rentals experiencing a strong upward movement thereafter. This demand is then likely to move into secondary space, which will boost the market and drive the next phase of the expansion cycle.