Share
- Release Date: 14/05/14 11:36
- Summary: GENERAL: PCT: Precinct secures development agreement at Wynyard Quarter
- Price Sensitive: No
- Download Document 3.53KB
PCT
14/05/2014 09:36
GENERAL
REL: 0936 HRS Precinct Properties New Zealand Limited
GENERAL: PCT: Precinct secures development agreement at Wynyard Quarter
Precinct Properties New Zealand (NZX: PCT) announced today that it has
entered into a development agreement with Waterfront Auckland to develop the
commercial office property within the Central precinct of Wynyard Quarter.
The agreement marks the successful conclusion of the exclusive negotiations
which were announced earlier this year.
Scott Pritchard, Precinct's Chief Executive, said, "We are very pleased to
have reached this agreement to work in partnership with Waterfront Auckland.
We now have two unique and exciting opportunities on Auckland's CBD
Waterfront. It is widely accepted that there has been a shift in Auckland's
CBD from a historic north-south or Queen Street orientation to one that
follows the waterfront. We believe this development complements our existing
portfolio but importantly will support our aspirations for the Downtown
Shopping Centre site."
"Securing this opportunity has been design led and the team together with our
architects Warren and Mahoney have done a fantastic job."
The current design is for two sites separated by a 15m wide public laneway
"the Water Street". Both sites have frontage to the Water Street that runs
from east to west between the sites.
Wynyard Quarter is one of New Zealand's largest urban regeneration projects
and has benefited from considerable public investment which is also set to
continue. Its public spaces and level of amenity in Auckland is unrivalled.
The sites will accommodate the Innovation Precinct and have a land area of
approximately 1.1 hectares with the potential to develop around 46,000 square
metres of gross floor area.
It is envisaged that these two sites will be developed in 5 stages. The
leasing strategy for the sites will build upon existing efforts to create a
purpose-built information communication technology and digital media hub that
brings together innovative entrepreneurs and larger scale companies as part
of Auckland Tourism Events and Economic Development's (ATEED's) plans for a
multi-building innovation precinct in the Wynyard Quarter.
Precinct will undertake the leasing, design and development of the site and
once agreed with Waterfront Auckland, Precinct will acquire a 125 year
prepaid ground lease to that stage. Progressing to construction of each stage
will require both Waterfront Auckland and Precinct approval.
The consideration for the prepaid ground lease will be determined based on a
residual valuation allowing for market tested assumptions. The structure
provides strong alignment and encourages a partnership approach between
Precinct and Waterfront Auckland.
Precinct retains its city centre office sector specialist strategy. This
opportunity caters to corporate occupiers whose operations would benefit from
low rise, larger floor plate accommodation in a city centre location and with
a focus on sustainable and innovative design. The Innovation Precinct also
widens Precinct's client base to provide accommodation for high-growth
technology businesses that may not otherwise be located in the CBD.
Precinct's previously announced programme of recycling capital out of its
existing portfolio will provide funding for this opportunity, taking
advantage of strong investment market conditions and a lack of competing
stock.
SAP Tower is currently being marketed for sale. Additional assets identified
for sale are currently being repositioned.
End CA:00250421 For:PCT Type:GENERAL Time:2014-05-14 09:36:45
