Genesis leaving Penrose for Wynyard Quarter: Mansons leases top of $247m block to energy business

New Zealand's largest private developer, Mansons TCLM, has leased a new $247 million office block to NZX-listed Genesis Energy which will move around 300 staff from the fringe area of Penrose to the fast-changing Wynyard Quarter.

Culum Manson, a director of the business with a $1b-plus six-year order book, said the top floors of the block at 155 Fanshawe St had been let in the project under construction at 155 Fanshawe St.

That is on the ex-Caltex service station site near the Halsey St corner in the Wynyard Quarter opposite Victoria Park.

Marc England, Genesis chief executive, said the Green Star-rated building would offer energy efficiency, recycled rainwater, solar power, onsite battery storage systems and efficient heating and cooling.

Genesis has lease all of level six with 2451sq m and a 116sq m deck and just under half of level five or 1036sq m, to give a total 3603sq m floor area including the deck.

In August, Genesis bought 40 per cent of car-sharing business Yoogo Share and England said today the new premises would offer greater opportunities "to weave car-sharing transport options throughout our operations and push the future of sustainable mobility."

Genesis has since September 2013 been headquartered in the Genesis Energy Building, the Central Park Corporate Centre, 660 Great South Rd, Penrose. That complex is owned by property funds managed by Oyster Group.

Those headquarters are 6km from the CBD so the shift indicates Genesis wanted more of a prime position amongst a lineup of big corporates with its new neighbours including Air New Zealand, Datacom and Fonterra.

Culum Manson of Mansons TCLM at 155 Fanshawe St last year. Photo / Dean Purcell

Manson announced in March the year's biggest real estate deal by leasing, then selling 155 Fanshawe St for $247m-plus to an international pension fund.

That price was particularly high because the land is freehold, compared to surrounding sites in the Viaduct and Wynyard Quarter area, all leasehold either to Viaduct Harbour Holdings or Panuku Development Auckland.

Central Park has generous staff car parking but the Wynyard Quarter is more squeezed for workers, designed with a "modal shift" to encourage residents and workers to use public transport.

Also in March, Steve Jurkovich, Kiwibank chief executive, said it had secured the naming rights to 155 Fanshawe St and would leave its current national headquarters at 151 Victoria St, on the Hardinge St corner. The bank has leased 2500sq m - all of level three.

Manson said Southern Cross had taken levels one and two and Regus NZ had leased the ground floor for co-working space.

Genesis shares are trading down at $3.32, along with other energy stocks, recently hit by the possibility of the Bluff aluminium smelter closure.