Details of City Rail Link deal emerge

Mayor says construction to start mid-year| PLUS Precinct's tower plan unveiled. 

Precinct Properties’ [NZX: PCT] deal with Auckland Council over its City Rail link has been detailed in interim results posted today.

The NZX-listed company unveiled plans for its Downtown centre this morning, and released terms of its rail link deal with the council. The deal includes Precinct’s purchase of Queen Elizabeth Square for $27.2 million.

Auckland Transport will build tunnels either side of the Precinct downtown site while the firm will build the tunnels below its own site.

One of the conditions of the agreement is that if the property firm does not proceed with the development in time to meet the City Rail Link Programme, Auckland Council can acquire the site at market value.

Auckland Transport will pay Precinct almost $20 million to compensate it for disruption – comprising compensation for “tunnel volume” of $9 million and additional office construction costs of $10.6 million.

Precinct’s rights over 200 car parks within the Downtown car park have been extended to 2095, but it can be redeveloped after 2048.

The firm today released imagery of the new tower to the NZX (see gallery), which is now estimated to cost about $550 million, up from initial estimates of $400-500 million.

In a statement the listed property firm says the curved design of the tower references the Waitemata Harbour while the retail design is a “network of laneways”. The company says the design will be finalised over the coming months.

“The agreement enables the construction of the structural works relating to the City Rail Link to be built early when Precinct develops the Downtown site.”

Mayor Len Brown said in a statement the milestone is “historic” and a good example of how partnership with the private sector can deliver economic transformation.

Timeline:

Early 2015
• Resource consents notified
• Downtown Shopping Centre agreement
• Early works design contract awarded
• Main works reference design
Mid – late 2015
• Early works detailed design complete
• Negotiation process for early works construction
• Work starts from Britomart to Wyndham St
2016+
• Works progress in the city centre and become more evident
• Ongoing communication with affected parties

vyoung@nbr.co.nz

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