Hotel plan for empty city tower

The Simpson Grierson building may be turned into a hotel

A deserted 20-level office tower in the heart of Auckland's CBD could be converted into a hotel if plans by its new owner come to fruition.

But one agent says tenant demand is so strong that it could be refurbished and leased as commercial premises.

The Simpson Grierson building on Albert St was emptied out last year after the large law firm moved to Lumley Tower on Shortland St.

The Albert St tower's new owner, Perron Group, has not yet decided if the block should be refitted as offices or a hotel.

Bayley's agent Bruce Whillans said initial indications were that the building would be converted into a hotel, but office tenants were keen.

"Such has been the demand for secondary office space I understand they are now going to refurbish it and keep it commercial," he said.

On December 3, listed Trans Tasman Properties got $58 million for the Simpson Grierson Building, Brookfields House on Victoria St and the Finance Carpark in Durham Lane. It said the buyer was Jamie Peters' Starline Group.

However, Perron has now emerged as the building's new owner.

Mark Perriam,of Perron, said yesterday he was examining options for the block, which had originally been built as a hotel.

He said Perron was also developing a five-star Sofitel Hotel in Queenstown for the world's largest hotel operator, Accor.