Civic leaders are disappointed a central Auckland commercial building site linked to a wealthy Singapore family remains undeveloped more than a year after buildings were demolished.
But Peter Wall, who works for the Kum family, said plans were being made and they are actively seeking an anchor tenant to turn the site into a vibrant commercial precinct.
The old Food Alley and ex-Yates building site between Federal St, Wolfe St and Albert St in the centre of Auckland CBD stands empty, most of its buildings demolished, the block fenced with barbed wire on top to stop people getting into it.
The Kum family, which also owns Auckland’s Hilton Hotel, had Ward Demolition remove buildings on part of the Auckland central-city block but work finished 15 months ago.
A large pile of bricks is on the Albert St side. Buildings that do remain are open to the elements and covered in graffiti, giving an unsightly effect.
Auckland Council’s Deputy Mayor Desley Simpson said it was very sad the site had been left in that state for so long.
“Auckland deserves better,” Simpson said of the 4371sq m block.
Councillor Chris Darby, who commutes from the North Shore via ferry, said it was a blight on the landscape: “So much opportunity beckons with that site. It’s so disappointing to see promise not realised and a wasteland becoming permanent.
“There are a handful of quality developers that would create something special on this site. Maybe it’s time for the current owner to shelve the mothball plan and offload.”
Wall said the Kums were committed long-term investors.
“Our goal is to enhance Auckland’s growth and cityscape through property development. We are actively seeking an anchor tenant to collaborate with us in transforming this site into a vibrant commercial precinct that adds significant value to the city.
“Admittedly, the post-Covid economic challenges and evolving business sentiments have presented challenges in moving forward. We’re equally focused on ensuring that the development aligns with what Auckland needs as a city,” Wall added.
He acknowledged the current unsightly aspects of the site but said there were specific reasons for some of those.
“We’ve been required to maintain three heritage-listed buildings on the site in their current state. Also, the main original structure on the site was posing significant health and safety risks, requiring its demolition.
“Addressing the perimeter hoarding, the decision to transition from hard hoarding to cyclone fencing was prompted by continuous vandalism issues and safety concerns. The current fencing offers enhanced security and visibility to mitigate these safety risks.
“Rest assured, we are committed to enhancing the site’s visual appearance in the coming months. While our consent allows the site to remain in its current state until 2030, our intent is to expedite finding suitable partners to commence development much sooner,” Wall said.
The business genuinely understood and valued the concerns voiced by the community and civic leaders.
“Our eagerness to engage constructively with stakeholders underscores our commitment to ensuring that the outcome aligns with Auckland city’s aspirations and vision for its growth,” Wall said.
Plans and progress would be shared because the business was committed to maintaining transparency and open communication throughout this project’s journey, Wall said.
Ward Demolition nicknamed the Kum site Pidgeon Palace after birds roosting in the empty buildings.
Marketing manager Bayleigh Ward said most of the works were completed by last November, with only minor works afterwards.
That company began demolition in November 2021 and Ward had won a World Demolition award announced in Vienna late last year for the job, she said.
The site whose addresses include 5-15 Albert St and 9 Wolfe St is owned by interests associated with the Kum’s M&L Hospitality. For example, 9 Wolfe St is owned by Superb Talent Holding whose 2022 balance sheet filed with the Companies Office declared “investment property under construction” assets of $100m, up on 2021′s $98m. Borrowings are $59m, down on the previous $93m debt.
Leasing consultants say the Kums must find a major anchor tenant before an already-consented tower climbing 40 levels high is built. Only then would M&L entities let any construction contracts. One major builder said his firm had bid to build the tower around 2021 but nothing went ahead back then.
“The Singaporeans need pre-commitments, it’s a huge development and they need people to lease space - an anchor tenant,” one leasing expert said.
Council records show that the Kums’ resource consent doesn’t expire until August 30, 2030.
Forbes lists the family as controlling a multi-billion dollar fortune with hotels in Asia and Europe.
Apart from the Albert/Wolfe/Federal St demolition site, M&L’s other two New Zealand assets are Princes Wharf’s Hilton Auckland Hotel and Christchurch’s Chateau On The Park a DoubleTree by Hilton.
The Albert St demolition left the historic Arthur Yates & Co Ltd. building and two old blocks. The seed company building is to be incorporated into tower plans.
On the waterfront end of the Kum’s site stands the ex-West Plaza, now called 1 Albert St, facing Fanshawe St, refurbished by Auckland Real Estate Trust which delisted from the NZX last year.
Wall said in 2018 he was working for the Singaporeans who planned a “substantial” development.
Back then Wall said the developers planned to build on 9 Wolfe St as well as the Yates site and a “substantial” multi-level commercial project was planned, maximising gross floor area ratios under the Unitary Plan: “That will be mixed-use with retail at the ground levels on Albert, Federal and Wolfe St. It could be a hotel and apartments but we’re only at the concept planning stage,” he stressed.
A resource consent for a new office tower was granted around two years ago. Plans were by two architecture firms - Auckland’s Ignite Architects and Cox Architecture of Sydney.
Council documents show a 37-level tower with a seven-level podium is consented, retaining facades of the Yates, Berry and Hopkins buildings.
The tower is planned to have 34,400sq m of office space and consultants have eyed up the effect that could have on the city’s commercial premises. It will need what experts call “favourable” market conditions to rise.
Allan Matson, a Waitematā Local Board member, said the Kums had left the site looking derelict which detracted from the city. The Yates and neighbouring Henry Berry & Co. building were recognised as being of heritage character. The date 1826 on Yates’ exterior was when the company was founded. But the building was built in 1911, Matson said.
“What’s left is the office but the warehouse on Wolfe St is also in a state of partial demolition,” he said.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
How many people had paid deposits was not stated but pre-sales said to be 'strong'.