Carpark sale market leader
The $40 million sale of the Federal St Car Park building is one of the highest price per-square-metre rates recorded in the Auckland CBD.
Skycity Entertainment Group Limited recently announced it had sold the freehold property, at 65-71 Federal St, to Australian property group ICD Property Investment Ltd.
The transaction was brokered by Colliers International’s capital markets team, represented by Peter Herdson and Jason Seymour.
Set on a substantial 1641sq m freehold site with Business City Centre zoning, the property comprises a purpose-built, 11,487sq m car parking building with 427 spaces over seven levels.
Herdson says the sale price equated to a rate of $24,375 per sq m of land.
“This is an outstanding result. “By comparison, high-profile apartment and hotel development sites in Auckland’s CBD have recently sold for $20,000 to $22,500 per sq m.”
Seymour says in analysing the sale on a per car park basis it equated to $93,677.
“What’s remarkable is that the property was sold with vacant possession, with no holding income from any of the 427 car parks.
“The sale price is a testament to the property’s superb location. It offers exceptional proximity to the Skycity entertainment precinct as well as CBD offices, apartments and transport links.
“The property is also within walking distance of two of Auckland’s most important development projects — the New Zealand International Convention Centre and the City Rail Link’s Aotea Station, both of which are under construction nearby.”
Purchaser ICD Property Investment has been responsible for a number of large residential development projects in Melbourne, including Eq Tower — a 633-apartment, 65-floor apartment building in the heart of the CBD.
The company recently expanded
into the Sydney market with plans to develop the airspace above the 120-year-old City Tattersalls Club
The plan involves a tower including a public gym, a hotel of about 100 rooms, and some 267 apartments.
ICD has not yet announced its plans for the Federal Street Car Park site.
However, Seymour says the property has obvious potential as a hotel or apartment redevelopment site.
“It is surrounded by numerous restaurants, eateries, theatres, hotels and conference venues.
“The site’s generous zoning allows for much greater density than the existing building, which means it could readily be redeveloped for commercial, hotel or residential use.
“New Zealand’s ongoing tourism boom and the $703 million NZICC and Hobson Street Hotel investment make the property particularly appealing as a future hotel redevelopment site.