The only office asset in Auckland’s progressive and world-class Wynyard Quarter to be offered to the open market has been relaunched to prospective investors by way of a tender campaign.
The 1920s John Lysaght Building on the corner of Pakenham Street West and Halsey Street was one of the first completed redevelopments in Wynyard Quarter by Auckland Council’s regeneration agency.
It has been held in public ownership under the management of Eke Panuku Development Auckland, since its refurbishment in 2015.
The prominent building is fully leased to Tātaki Auckland Unlimited, another council entity, who operate the collaborative business start-up hub GridAKL, providing office accommodation for around 60 incubator businesses and close to 190 personnel as part of an innovation community.
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The property returns annual net income of $765,906 plus GST and outgoings, with the current lease term running until 2029, with two, six-year rights of renewal beyond that.
The prepaid 125-year leasehold structure means the building does not attract leasehold outgoings, and has no exposure to ground rent reviews and increases.
The standalone characterful building has a lettable area of 1,186sqm and occupies a 1,133sqm site, zoned Business – City Centre, Wynyard Sub-Precinct D.
A restrengthening project has positioned the building at 86 percent of new building standard, and sustainability initiatives have contributed to its 3.5 Star NABERSNZ rating.
Many aspects of the property’s earlier industrial heritage have been retained and enhanced thanks to an empathetic reworking by award-winning architectural firm, Warren and Mahoney.
The building’s southern and eastern facades were retained, together with original Jarrah columns, central beams, and exposed interior masonry.
The ground floor consists of open-plan offices, function and training rooms. Facilities offered include male, female and accessible amenities, comprehensive end-of-trip facilities, lift access, and a recycling room.
The upper level is predominately open plan offices with similar facilities offered, with this level benefitting from extensive glazing providing optimal natural light.
Tenders for the property close on Thursday 29th August with Bayleys Auckland Central.
Cameron Melhuish of Bayleys says a sales campaign for the property was run two years ago, however a suitable purchaser was not uncovered.
Despite the property’s strong underlying fundamentals, market conditions were not favourable at that time with the rising cost of debt, inflationary pressure and a decentralised workforce creating a pause in the commercial property investment market.
“Now, some of the key drivers are coming back into line and this property offers an affordable and unique chance for private investors and intergenerational trusts to get a foot in the door of the coveted Wynyard Quarter precinct.
“It’s a prestigious location, the building has been fully refurbished and strengthened, and there’s a very good tenant in place.
"With inflation being reined in, interest rates tipped to mellow in the near future, and private capital actively seeking a home, it is expected that the property will garner interest from multiple parties this time around.”
Further supporting the proposition is the high level of amenity and transport connections that the location offers, which helps with the attraction and retention of staff as the return-to-office continues.
“The Wynyard Quarter is absolutely humming with office workers now. It’s lively, vibrant and home to five Fortune 100 tenants, six NZX or ASX-Listed tenants, and a multitude of leading corporates.
“Add in the major new development projects that are emerging out of the ground as pivotal sites are activated and the value equation stacks up for the John Lysaght building.
“This is institutional-owner territory where big development sector money has gravitated, and private investors can now enter the arena.”
As examples of innovative new development, Melhuish references NZX-listed Precinct Properties’ office tower in Halsey Street for engineering firm Beca due for completion next year, and Mansons TCLM’s building at 30 Daldy Street for telecommunications company One New Zealand that plans to move from Smales Farm in late-2025.
Publicly listed developer Winton remains active in Wynyard Quarter with The Villard apartment development on the corner of Pakenham Street West and Daldy Street, its Northbrook Wynyard Quarter vertical luxury “later living” or retirement offering on the corner of Pakenham and Beaumont streets, and its proposed Cracker Bay hospitality precinct around Westhaven Drive.
- Supplied by Bayleys
