Precinct buys Queen St HSBC tower block
The $103 million outlay represents an initial yield of 7.7%.
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Listed Precinct Properties has agreed to buy HSBC office tower at No 1 Queen St in Auckland.
The waterfront tower adjoins the Downtown Shopping Centre which Precinct recently acquired and is next to the Precinct-owned Zurich House, PwC Tower, and AMP centre.
Precinct will pay $103 million, representing an initial yield of 7.7%.
The vendor is No 1 Queen Ltd, whose shareholders are Kerry Knight, Chung Lin, Chin Li, and Chong Du Cheng.
Completed in 1972 and refurbished in the late 1990s, the building has rectangular floor plates of around 1000sq m and views of the harbour.
The building site is 2322sq m and has development potential on the north-west waterfront through Precinct’s ownership of the Downtown Shopping Centre.
The 21-level tower includes 17 levels of office space, 1160sq m of retail space, 127 carparks and is 88% occupied with a weighted average lease term of around four years.
Major occupiers include HSBC, Baldwins Intellectual Property and the New Zealand Transport Agency.
The vendor will provide a six-month rental underwrite over the 2300sq m of vacant space which equates to two floors.
Chris Hutching
Mon, 25 Mar 2013
Mon, 25 Mar 2013
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Precinct buys Queen St HSBC tower block
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