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News Release

Auckland

Large development opportunity on Nelson Street


 

 

Historic Auckland landmark the General Building for sale/new-zealand/en-gb/news/851/historic-auckland-landmark-the-general-building-for-saleAucklandHistoric Auckland landmark the General Building for sale
Significant piece of industrial land for sale /new-zealand/en-gb/news/848/significant-piece-of-industrial-land-for-saleChristchurchSignificant piece of industrial land for sale

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JLL has listed an Auckland CBD development opportunity with excellent potential for office space, hotel or residential accommodation, it ticks all the boxes. The 55-59 Nelson Street freehold property is a prominent 1970’s data centre on a large 2,125sqm site that sits directly opposite the proposed new Sky City Convention Centre which is planned for development. 

The Nelson Street property, within the western fringe of Auckland’s central business district, will be the subject of an international JLL marketing campaign that will run for six weeks. JLL’s managing director Nick Hargreaves and commercial sales and investment specialist Ian Hall are offering the significant site for sale via expressions of interest closing 29th July 2015.

Hargreaves says it is rare for this type of site to come to market, therefore he expects this property will generate a significant level of interest from investors and developers. 

“Auckland’s rapid population growth is driving the increased need for business space and residential accommodation, a commodity which is currently in short supply. This property presents a rare opportunity to secure a substantial development site and capitalise on strengthening market fundamentals in Auckland,” says Hargreaves.

Due to the lack of quality investments available in the market, and the low yields being demanded for fully occupied investment opportunities, a number of investors are attracted to purchasing buildings that are vacant and taking on the leasing up or development risk in order to add value.

“The value of the site will be significantly enhanced by the planned Sky City Convention Centre located opposite the property and will further promote the area as a commercial and entertainment precinct within Auckland. The region surrounding 55-59 Nelson Street is fast becoming a core location of its own right within the Auckland office market. The area, known as the Victoria Quarter, is popular with those occupiers requiring larger floor plates in low to mid rise buildings,” says Hall.

Media statements from Sky City indicate that it expects the new convention centre will cater for 3,500 international conference delegates at any one time and attract 33,000 more delegates to Auckland each year. Occupiers currently surrounding the site include Spark (formerly Telecom), NZME, Courier Post, Oracle and Kiwi Bank.

Hall says if additional levels were constructed on the site excellent views would be achieved over the Viaduct and Waitamata Harbour, in addition to the far-fetching views that can already be seen to the west across Victoria Park. 

The current building contains five levels, three of which are below ground, with a total net lettable area of 4,987sqm and 21 car parking spaces. Level 1 and the ground floor of the property provide open-plan office space. The basement level 1 provides a mixture of spaces including commons areas, plant rooms, office suites and test centres. Basement level 2 provides both computer rooms and high performance computer rooms whilst basement level 3 houses the water tanks, additional plant and machinery, and storage. 

Further development of the subject property’s surrounding area is underway which as a result is expected to increase demand. 151 Victoria Street West is due to add 20,000sqm of highly sustainable office and retail accommodation to the Victoria Quarter by 2016. Slightly further afield, in the Wynyard Quarter, Fonterra have announced the development of their new 16,000sqm headquarters within a projected 50,000sqm office and retail precinct fronting Fanshawe Street.  

Infrastructure improvements such as the new city rail link is also expected to significantly improve connectivity within the CBD and boost the appeal and profile of the site.

According to JLL’s latest city investment intensity index, which compares the volume of direct real estate investment over a three-year period relative to the current economic size of a city, Auckland ranked 7th in the world in Q115 climbing six places as investment volumes doubled over the past year; indicating that Auckland remains a strong favourite with domestic and international investors.