A historic building that occupies a high-profile position opposite Te Waihorotiu Station in central Auckland is being presented to the market for sale and offers buyers the opportunity to acquire a prominent asset with long-term development potential.
Sitting at 15-31 Wellesley Street West and 39-41 Elliott Street, the T&G Building is held in two contiguous freehold titles and covers 1,783sq m of land area with 6,368sq m of floorspace.
The property is nearly fully occupied and returns $4.3 million in net passing income. The current tenants include a diverse mix of food and beverage establishments, retail outlets, and 70 managed apartments.
The property, which is in the Queen Street Valley Precinct and is zoned Business – City Centre Zone under the Auckland Unitary Plan, has a 67 per cent NBS rating based on a detailed seismic assessment that was completed last year.
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The highly visible corner location is moments from Queen Street and the property boasts 86m of street frontage. This location is across from the Te Waihorotiu Station that will service the City Rail Link when it opens.
In the near future, Malaysian Resources Corporation Berhad are set to commence development on a 21-level mixed-use tower above the station that will be part of the $600m Symphony Centre.
Adding to the ongoing infrastructure development nearby, the New Zealand International Convention Centre is set to open next year and is only 250m away on Hobson Street.
Blair Peterken, Director of Capital Markets at Colliers, and Henry Thompson, an investment sales specialist from Whillans, have been jointly appointed to market the property for sale via tender closing at 4pm on Wednesday 26 June, unless sold prior.
Constructed in 1910, the T&G Building is split between a lower ground level on Elliott Street, housing the popular Elliott Stables food court, with a mezzanine level of commercial showroom accommodation above. The ground floor shops are located on Wellesley Street West.
Levels 1-3 and the corner turret on Levels 4 and 5 contain character apartments. A backpackers hostel is located on Level 4 and it has its own separate entrance and lift off Wellesley Street West.
The property includes access to 10 car parks that are in a central courtyard via a right of way from Albert Street.
Peterken says having the chance to acquire the T&G Building presents a once-in-a-generation opportunity to secure a landmark property below replacement cost.
“This is one of the most eye-catching buildings in central Auckland and is located in an enviable position,” Peterken says.
“When completed in 1930 it enjoyed a prominent position as one of Auckland’s tallest structures and remains a key piece of architecture in the CBD.”
Thompson says while the property provides excellent income diversity, a long-term play could involve converting the building into a hotel or developing a high-rise tower behind the building’s distinctive character facade.
“With average room sizes above 40sq m, which is more than double standard hotel room sizes, there’s further scope to increase the number of rooms within the existing building envelope,” Thompson says. “This property is one of the most impressive assets to come to the market this year.”
- Supplied by Colliers
