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News Release

Auckland

Kiwibank House on offer

A newly refurbished seven level commercial office tower located on a prominent corner position fronting Victoria Street West and Hardinge Street is up for sale in the popular Victoria Quarter, Auckland Central.


 

 

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​​​Kiwi Bank House - 151 Victoria Street West.jpg“The Victoria Quarter area is now seen as an extension to the vibrant Viaduct and is fast becoming a core location in its own right within the Auckland office market, characterised by growing commercial presence particularly low to mid rise purpose built office buildings,” says John Binning, director of capital markets at JLL, who is marketing the property via an expressions of interest campaign closing Friday 7th August 2015. 

The property sits on a 1,741sqm freehold site at 151 Victoria West Street, situated along the northern alignment of Victoria Street West being approximately 200 metres west of Nelson Street on the western fringe of Auckland’s Central Business District (CBD). More commonly known as Kiwibank House, the building provides 4,777sqm net lettable area commercial office space with part retail on the ground floor and 15 onsite external car parking spaces and 60 basement parking spaces. Since 1991 the property has been tenanted by New Zealand Post Limited and is 100% fully occupied with a new lease signed by the current tenant in July 2013.

The asset is currently returning a net contract rental of $1,687,585 per annum plus GST and outgoings with 2.75% fixed annual increase, a weighted average lease term (WALT) of 7.08 years and a market yield of 6.84%. Current outgoings are well below market levels at $57.74 per square metre and therefore considered beneficial to the tenant on a local occupancy basis. 

“The Victoria Quarter precinct is popular with occupiers requiring large floor plates in low to mid-rise buildings or simply desiring a more campus style office with a central location. There is a definite emphasis on future supply in this area with further developments underway that will invigorate the precinct and act as a draw for consumers and occupiers,” adds Binning.

Immediately surrounding developments include Spark City (former Telecom House) building comprising of four interlocking green star commercial office buildings with ground floor retail, the recently completed Oracle House at 162 Victoria Street West and directly boarding the subject site is the Mansons owned 151 Victoria Street Development currently under construction.

Mansons have centred three of their most recent green star projects in the Victoria Quarter, including Telecom Place, Oracle House and the neighbouring site to at 151 Victoria Street West which is currently under construction with NZME. expected to shift into the building later on this year. Once completed this site will provide approximately 20,000sqm of highly sustainable office, retail and café style tenancies to the north of Kiwi Bank House, a pedestrian walkway and open air courtyard provided to the eastern periphery of the property. 

Vehicle access to Kiwibank House is from Hardinge Street along with pedestrian access to the lower ground level. The main pedestrian access to all office levels is to Victoria Street West, a road which links Freemans Bay/Ponsonby to Queen Street. 

The surrounding properties comprise of medium intensity developments, predominantly commercial office buildings with retail on the ground floor, a Les Mills gym and childcare centre directly opposite the building to the other side of Victoria Street West. There are multiple cafes to Spark House, along Graham Street and Victoria Street West. Carparking buildings in close proximity include 128-130 Fanshawe Street Carpark, Nelson Street Carpark and 72-100 Fanshawe Street Carpark.

Access to and from the motorway network, in both the north and south directions, is situated within one kilometre of the property, while the CBD and its main retail precinct is situated approximately one kilometre to the west. The property is within easy walking distance from the City Centre and shops, Viaduct Basin and the redeveloped Victoria Park Market.

​“This asset represents an excellent opportunity to gain access to a sector of the commercial property market that is set to see significant growth over the long-term and is one not to be over-looked”, says Binning.