Wynyard Precinct buys Datacom building

Artist's impression of the new Datacom building on the corner of Gaunt St and Daldy St in Auckland's Viaduct Quarter.

Goodman (NZ) Limited has announced that Wynyard Precinct Holdings Limited has conditionally agreed to acquire a new office building that is being developed for Datacom in Auckland's Viaduct Quarter for $86.2 million.

Located on the corner of Gaunt St and Daldy St, and adjoining a planned linear park that will link Victoria Park to the Wynyard Quarter, the 16,735 sq m development will be purchased from Fletcher Building on completion in March 2017.

The office facility will feature large flexible floor plates and comprise 15,328 sq m of high quality commercial space, 1407 sq m of retail space and 152 car parks.

The property is designed to a five green star rating and incorporates sustainable architectural elements and energy efficient building systems.

IT service provider Datacom will consolidate its Auckland operations into the new office facility. The privately owned local business has committed to a 15 year lease across five floors of the new building, representing around 80 per cent of the total rentable area.

With the uncommitted space providing a further value-add opportunity the acquisition is expected to provide a yield on cost of around 8.5 per cent once fully leased and income producing. The estimated value, once fully leased, is forecast to be $90 million.

To facilitate the acquisition of the completed building by Wynyard Precinct Holdings Limited, GMT has entered into a development funding arrangement with Fletcher Building whereby GMT funds the construction of the building until settlement.