Overseas fund seals off-market purchase

A 24-level central Auckland office tower has been sold to an overseas investment fund for $214 million.

The building at 125 Queen St has been extensively renovated for office tenants and lower-floor retail tenants by the former owner.

Behind the street-level historic facade is a new dining precinct called Queen’s Rise, which has proved popular since opening in July.

The off-market deal was brokered by Whillans Realty owner Bruce Whillans, who said he was unable to comment because of a confidentiality clause.

The purchasing company, NZRE Corgi, is a recently formed subsidiary of the Invesco Real Estate Asia Fund, a Luxembourgbased investment management company, which invests in office, industrial, retail and apartment properties.

It has satisfied the Overseas Investment Office (OIO) ‘‘that the individuals who will control the investment have the relevant business experience and acumen and are of good character’’.

‘‘While containing a historical commercial building, the land is not sensitive, because it is located in central Auckland and not adjoining the foreshore, with a surveyed area of less than 0.4 hectares,’’ the OIO said.

The new owner intends to continue running the building as a commercial property.

CBRE agent Matt Hockey said the upper levels had contained 17,000 square metres of office space.

Leasing agents had signed up tenants for 10,000sqm and had another 1000sqm under contract, Hockey said.

The company selling the building was Special Situations Assets, another overseas fund with majority shareholders in the US. Special Situations bought the building in 2015 from the Sultan of Brunei for $57m – the biggest property deal in New Zealand that year.