BP shifts head office to Newmarket

Outside the new BP head office in Newmarket are, from left, Frank van Hattum, director retail and asset management for BP; Mac Manson, director Mansons TCLM; Matt Elliott, BP's managing director; and Matt Lamb, senior broker with Jones Lang LaSalle.

Energy and petroleum corporation moves from Wellington into new `green' Auckland premises.

BP will lease space for its new head office in Mansons TCLM's newly constructed five green-star rated building at 73 Remuera Rd in Newmarket. It's a major move for the giant energy and petroleum corporation which has based its head office in Wellington for the past 67 years.

The decision to relocate the headquarters to Auckland follows earthquake damage to BP House on Customhouse Quay during two strong tremors last year.

Frank van Hattum, director retail and asset management for BP, says the company moved into temporary premises in Wellington following the earthquakes. "This situation gave us the opportunity to consider creating one head office by joining the existing Auckland and Wellington offices together in the same location."

Van Hattum says BP is expected to have its 150 staff members settled in the building by July 1.

He says the selection of the new Mansons building "was driven by our need for a quality, safe, and environmentally friendly head office.

"In addition to its high 'green' rating, the Remuera Rd building is rated 100 per cent of New Building Standard (NBS) - both major attributes sitting at the top of BP's needs."

Van Hattum, who led the search for BP's new home, says careful consideration was given to the needs of staff. "They essentially chose this superb Newmarket location for the easy access to shopping and parking along with being close to Newmarket's modern railway station and links to the Auckland motorway on-and-off ramps."

Mac Manson of Mansons TCLM, who signed the deal, says BP are taking the last tenancy of 1983.76sq m in the now fully leased 12,800sq m building on a 4340sq m freehold site in which anchor tenant Watercare occupies 70 per cent of the space and has naming rights. Other major tenants include NZ Lotteries and Avanti Finance.

"BP now completes a superior mix of quality tenants for this international A-grade property that was sold for $100 million at a 7 per cent yield to a private investment company late last year," Manson says.

Mac Manson, who has completed over 16,500sq m of leasing for the family firm with a capitalisation value of over $80 million in the past 2.5 years, says the Auckland premium office market has tightened with Mansons now having no more new space available until the end of 2015.

"The company is receiving strong interest in its new 18,600sq m office building with floor areas of 3100sq m at 151 Victoria West which is under construction and there are plans to start two new Auckland developments within the next two years."

Matt Lamb, senior broker with Jones Lang LaSalle, who facilitated the BP lease, says it was a tough call to secure new premises for BP's move from Wellington in an exceptionally tight timeframe.

"BP's long-term property solution required a highly focused full market investigation, summary site selection and lease negotiation process," Lamb says. "That the lease was secured within two months from our engagement is a testament to all companies involved and is generally unheard of - particularly with size of a company such as BP."

Lamb says particular importance was stressed by BP on taking into account the views of staff in relation to location, accessibility and local amenities. "Newmarket delivers on all counts with public transport, motorway access and arguably being Auckland's premier shopping strip.

"Two major drivers for BP were environmental considerations and health and safety. In this regard 73 Remuera Rd came out as the perfect location and brand fit for BP's new headquarters due to the property holding a 100 per cent IEP [initial evaluation procedure] earthquake rating; providing the latest in sustainability design; having lower operating costs; and offering improved occupant comfort for tenants.

"As an example of the latter, the building, which is Newmarket's first five-star rated building, comes with 42 secure bicycle parks, shower and locker facilities and an on-site gymnasium for the exclusive use of tenants and staff members."

Watercare relocated about 460 staff before Christmas from two buildings it occupies in Nuffield St, Newmarket and East Tamaki to 7000sq m of space in the five-level Remuera Rd building. Watercare occupies the top three floors on a 12-year lease that also includes 185 basement car parks and naming rights.

The sale of the 73 Remuera Rd building was the biggest of four large office building sales that Mansons TCLM concluded last year.

Others were the 8303sq m GHD Building at 27 Napier St, Freemans Bay which sold for $63 million.

That property's largest tenant is Lion New Zealand with the balance of space leased to GHD, a global engineering consultancy.

Mansons also sold the 8000sq m Oracle House building at 162 Victoria Street West in the Auckland CBD reportedly to Sir Russell Coutts. Across the road at 151 Victoria Street West, Manson TCLM sold Courier Post House for $22.8 million to a private investor, with a nine-year lease to New Zealand Post.