A prominent Auckland CBD office asset, opposite the Vero Centre on Shortland Street, is on the market for sale through CBRE, comprising the first core CBD office tower to be offered on the open market since mid-2020.
Strategically located at 51 Shortland Street in the city’s pre-eminent legal and financial precinct, the comprehensively upgraded and refurbished 18-level building offers a rare chance to acquire a significant office asset in an elite CBD location.
CBRE executive chairman Brent McGregor, who is marketing the building with CBRE capital markets brokers Warren Hutt and John Holmes, says the asset is a flagship holding in Auckland’s premier downtown business precinct.
“This is a well-recognised building in the centre of the Auckland CBD financial hub, surrounded by premium office developments including the Vero Centre and former Lumley Centre, now known as Shortland and Fort,” he says.
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“It’s a compelling portfolio addition for investors looking to secure a prime CBD office investment with a diversified tenant mix, generating annual net passing income of over $5.4 million.”
The freehold property is for sale by international expressions of interest closing on Thursday March 23 at 4pm, with the campaign expected to attract interest from a range of investors; from high net worth individuals through to family offices, trusts and funds both national and offshore, says Hutt.
“The proactive current manager, AMP Capital, has invested significant capital expenditure into building infrastructure and upgrades, effectively repositioning 51 Shortland Street as a contemporary office asset for the future.”
The sale offers investors a prestigious asset and a significant 1,792sq m corner land holding in one of the city’s most sought-after addresses for professional services firms, Holmes says.
“Shortland Street has long been recognised as a premier business address, which is particularly favoured by tenants in the banking, insurance and legal sectors which have occupied offices here since commerce first began in the Auckland CBD.”
McGregor says there is an impressive roll call of corporations which call Shortland Street home.
“BNZ, Russell McVeagh, Simpson Grierson, Suncorp, Goldman Sachs, Forsyth Barr, and Cameron Partners, among many others, all demonstrate that this is the place to be for financial and professional services organisations.”
The building is occupied by over 20 tenants, including the New Zealand Law Society, Manpower Services, Madison Recruitment and the Property Council of New Zealand, providing a diversified income stream.
“A key attraction for potential investors will be the split risk characteristics of this asset, with the tenants representing over 10 different business sectors including government, legal, engineering and financial services,” says Hutt.
51 Shortland Street was constructed in the mid 1980s and offers more than 10,000sq m of office space across 15 levels, along with ground floor retail and 141 carparks on three basement levels. It has been institutionally managed by AMP Capital for many years.
Recent upgrades include a full refurbishment of the main lobby into a stunning, double-height contemporary public space including a cafe; along with a significant overhaul of the large outdoor terrace at podium level, which offers an attractive north-facing social area for tenant use.
Other improvements include bathroom and floor lobby refurbishments, lift modernisation, boiler replacement, end-of-trip facilities and HVAC control upgrades.
The flexible 635sq m office floor plates are ideally suited to the Auckland leasing market, with over 70% of all leasing deals being for spaces under 500sq m, Holmes says.
“The corner location with three street frontages, along with the building’s podium design with the office tower floors stepped back, means the interiors also receive great natural light and provide an excellent sense of space surrounding the tower. Many tenants enjoy excellent views over Albert Park.”
Further benefits include ample carparking above current permitted ratios; easy access to bus, train and ferry transit; along with key downtown retail and hospitality hubs including Commercial Bay, Britomart and High Street a short walk away.
- Article supplied by CBRE
