Going up: site approved for new 55-storey tower
An Auckland CBD site granted fast-track planning approval for one of New Zealand’s tallest high-rise buildings is on the market.
The 1461sq m landholding at 65-71 Federal St, on the corner with Kingston St, is occupied by a seven-level parking building.
It is being sold with a recently granted resource consent from the Environmental Protection Authority for a 55-storey apartment building with a nine-level podium.
The tower was approved under the Covid-19 Recovery (Fast Track) Consenting Act 2020 designed to speed up the consenting process. It is consented at a 29:1 plot ratio (29sq m of building to 1sq m of land), allowing the purchaser significantly more development than a typical landholding of this size in Auckland’s city centre.
Bayleys’ national commercial and industrial director Ryan Johnson says the consent holds considerable value.
“It is an extremely rare opportunity, with the density of development approved for this site substantially higher than what has been achievable on other sites throughout Auckland’s CBD to date.
“In combination with current annual holding income in excess of $1million from a carparking lease and the corner position in an area undergoing significant rejuvenation, this is an exceptional landmark development offering.”
Bayleys has been appointed sole agents for the property’s marketing and sale by its current owner, Melbourne-headquartered ICD Property. Expressions of interest are being sought, with offers to be presented by December 8.
ICD Property managing director Matt Khoo says the opportunity to acquire significant development sites in Australia has resulted in the decision to sell the Auckland property.
ICD acquired the site opposite the Sky Tower in 2018 and invited five architectural firms to participate in an international competition to design a landmark tower. Australian firm Woods Bagot, in partnership with NZ architects Peddle Thorp, won the competition and its design was used as the basis for the resource consent.
The consented development has a gross floor area of 47,560sq m and a height of 183m, just a few metres shorter than the 187m Seascape apartment building under construction on Customs St East. The Federal St site’s more elevated position would make it the highest building in the CBD excluding the Sky Tower.
The design comprises 357 one- to threebedroom apartments, with larger apartments targeted at owner-occupiers on the upper levels and smaller apartments suited to investors on the lower levels, which could also become part of a serviced apartment hotel operation.
The lower podium levels incorporate parking for cars, motorbikes and bicycles and a 1000sq m ground-level marketplace designed to connect with the street. It would serve as a community space encompassing everything from vendors selling local produce to eateries and bars.
Khoo says ICD is proud of what has been achieved through the design and consent process, involving extensive consultation with Auckland Council and mana whenua. “We believe this has produced an industry-leading, very aspirational project for Auckland that unlocks the potential of this site and connects it with the city’s past, present and future.
“In the process of doing this, we have also built a very strong support team of leading architects, engineers, urban landscapers and other service providers. Extensive work has also been undertaken on interior design and pricing for the apartments. We would be pleased to assist the next owner in whatever way we can, should they wish to proceed with this project.”
Cameron Melhuish, associate director of Bayleys’ capital markets division who is coordinating marketing of the property, says the site is occupied by a seven-storey 1980s carpark building leased to Secure Parking NZ until April 2029, with a three-month surrender/termination clause in favour of the lessor. This is currently producing gross annual rental revenue of $1.45million plus GST.
“While much of the hard work has already been done in terms of pre-construction planning and design and obtaining a very favourable resource consent, the significant medium-term holding income provides additional flexibility to investigate other ways of adding further value to the property.
“This could include considering incorporating other uses permitted under the City Centre zoning such as office or hotel accommodation. The carparking lease would also provide income while any presales or leasing commitments are secured.”
Melhuish says the property is well located, equidistant from the waterfront and Britomart transport centre and the Aotea civic, arts and entertainment area. “It is in a busy pedestrian precinct receiving major upgrades to improve walkability and foot traffic. Surrounded by some of Auckland’s best restaurants, cafes, shopping and entertainment attractions, it is attractively positioned to capitalise on the revitalisation of the area.
He notes the plethora of nearby public and private investment initiatives either recently completed, in progress or planned.
“These include a number of nearby hotel and residential developments on Albert and Hobson streets, the SkyCity convention centre and the City Rail Link.
“The Federal St precinct has been identified in the City Centre Masterplan as part of a pedestrian-priority laneway network connecting city centre destinations and character precincts. This is likely to see the current shared laneway alongside the SkyCity casino extended all the way along Federal St to St Patricks Square.”
Bayleys executive director David Bayley says a global campaign is being launched to market the property, which is expected to attract strong offshore interest considering its rarity and unrivalled development value. He and Johnson will be travelling to Singapore later this month to present the opportunity to potential purchasers in conjunction with Bayleys’ international alliance partner Knight Frank.
Bayleys director of Asian markets James Chan will be promoting the property to offshore and local Chinese developers and investors. He and Bayley have been involved in the sale of a number of CBD landholdings to Chinese and Singaporean interests including the Seascape and Pacifica apartment sites and 5 Albert St, purchased for a high-rise office development.
Bayley says there has been a noticeable increase in Southeast Asian investment interest in New Zealand in recent months. “This is principally being driven by the reopening of our borders. The significant recent fall in our exchange rate against most currencies is also helping stimulate offshore interest, particularly out of Singapore but also from the US and Australia.”