City centre office site sells for $44m

The 12-storey block on the corner of Queen St and Victoria St has 100 per cent occupancy.

Jones Lang LaSalle has successfully sold and secured the management of the 12-storey office and retail building at 203 Queen St, Auckland that was previously owned by Q & V Building Partnership.

John Binning, director of capital markets for Jones Lang LaSalle says three offers were presented for consideration from China, Zurich and Singapore.

"Tan Chee Hoe & Sons Ltd from Singapore was selected as the buyer because of that firm's proven performance in New Zealand and the building was sold for $44 million."

Binning, who has now sold 203 Queen St twice, says Jones Lang LaSalle had a long-standing relationship with Tan Chee Hoe & Sons, which is also the landlord of 180 Molesworth, Wellington and the West Plaza Building, Auckland.

"We believe this is an excellent outcome for such a well known Auckland city building," he said.

The property at the corner of Queen St and Victoria St comprises a total net lettable area of 8358sq m and was given an extensive refurbishment in 2005 at a cost of about $17 million.

Binning says the building has unique architectural features.

"The 'loft' sitting on the top level, provides exclusive office and entertainment space. The area has a minimalist design and is accessed via an engraved granite stairwell from level one, featuring tread lighting. The lobby to the building also features a large steel artwork consisting of two circular hoops which are positioned at either side of the entrance ramp to create an artistic twist within an already modern setting."

Binning says an independent initial evaluation procedure (IEP) was undertaken indicating the building has achieved Grade A-plus seismic strength with a rating of 119 per cent of the new building standard (NBS).

Ria Hayward, director of property and asset management at Jones Lang LaSalle says the property is at 100 per cent occupancy.

"One of New Zealand's leading gyms, City Fitness, is situated across levels one, two and three.

"Other tenants include Pacific International Translation, Madison Recruitment, Law Staff (NZ) Limited and AE Management Limited."

Binning says the sale includes the ground retail floor which is leased by ANZ Bank

"The bank is vacating in May 2014 nad we are negotiating with other tenants to lease the space," he says.